Most recently Taptica released a QnA (https://www.taptica.com/wp-content/uploads/2018/05/QA-Hagai-Tal-May-2018.pdf).  

Taptica has two revenue streams: the performance division which is the original Taptica business, and the brand advertising division, Tremor video.

There was a question and answer which I am unclear about - I wanted to check with more expreinced investors and/or accountants on their thoughts......:

One of the questions and answers in the QnA was :


Q: Why does the moving around of costs and people between areas (i.e. performance to branding) of the business mean that organic growth cannot be tracked at least on the top line?

A:The revenue of the two divisions can be tracked, but the profit cannot as we keep costs below each division fluid, i.e. we constantly move staff between the two divisions to create operational efficiencies.

If organic growth cannot be tracked on the top line, is this a  potential red flag or issue in terms of quantifying / measuring /auditing the top line growth? or am i missing something and this is not an issue to worry about?


Thanks all

Dav

Finish reading with a 14 day trial

or Unlock with your email

Already have an account?
Login here