Why does it matter? Hypergrowth is what you get when a business with technical advantages finds a niche market where alternatives are noticeably (and in some cases, painfully) inferior. Ruckus claims an edge in how it makes otherwise dumb Wi-Fi technology much smarter and more efficient for its carrier customers, Tim says.
Trouble is, the numbers don't reflect the sort of outsized growth you'd expect. Revenue grew 17.7% to $68.9 million in Q3, resulting in $0.05 a share of non-GAAP earnings. Both figures beat estimates, yet product revenue grew only 16.5%. Far less than you'd want or expect from a business that purports to exhibit patentable advantages, Tim says.
Should current Ruckus investors sell, or does the stock's recent underperformance mark a buying opportunity? Tim answers this question and more in the video. Please watch now and then leave a comment to let us know what you think.
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