Cloud Growth Should Follow Heavy Capex Rains
Car Care & Cleaning·2025-02-09 04:54
Cloud revs decelerated back to prior trend (Q4 30% y/y vs. Q1-Q2 28-29%) after a strong 35% in Q3. But we see potential for future upside given current capacity constraints and plans for FY25 capex up 43%. Ad revs were healthy, esp. YouTube +14% y/y. But Q1 is to start slow given FX headwinds and tougher comps. Continued efficiency gains as op mgn (net) 37.9% +520bp y/y. Stock trades ~12.6x NTM EV/EBITDA vs. 12x 10-yr avg; expect to grind higher. Buy, $235 PT. Things we liked: Things we're watching: | FY (D ...