The Canadian Investor - Earnings roundup - Nuvei, Unity, Berkshire, Well Health, Magna, AMC, Coinbase and more!

Episode Date: August 19, 2021

In this second episode of the week, we’re doing an earnings roundup because it’s earnings season!  We’re talking about recent earnings of Nuvei, Unity, Berkshire Hathaway, Magna International, Coinbase, Squarespace, AMC, Cineplex, Chegg, Well Health Technologies and WSP Global. Tickers of stocks discussed: NVEI.TO, U, BRK-B, MG.TO, COIN, SQSP, AMC, CGX.TO, CHGG, WELL.TO, WSP.TO Getstockmarket.com Canadian Investor Podcast Twitter: @cdn_investing Simon’s twitter: @Fiat_Iceberg Braden’s twitter: @BradoCapital See omnystudio.com/listener for privacy information.

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I'm Brayden Dennis, joined by Simon Belanger. We have an earnings episode for you today. We're talking about Canadian companies, US companies, all kinds of different sectors. And it still feels like Christmas. Earnings reports rolling in pretty heavy over the last week as well. It is starting to cool off, so expect some slowdown in news. But we're here to cover some of the companies that we think are interesting and we think you guys will as well.

companies that we think are interesting and we think you guys will as well. Simon, do you want to get right into it, kick it off with the hot payments company on the TSX, Nuvei? Yeah, Nuvei. We've had a lot of questions about this one, so we'll probably have to get back to it at some point, but they also released their earnings recently. So it looked pretty good. Their total volume, so that's basically like total transaction volume, a bit like gross transaction volume for Lightspeed. Just to give some context, which we've talked about recently. So that increased 146% to $21.9 billion from $8.9 billion.

The e-commerce represented approximately 84% of total volume. Revenue increased 114% to $178.2 million. That's up from $83.3 million. Net income was $38.9 million compared to net income of $14 million last year. The adjusted EBITDA increased 112% to $79.4 million. That's up from $37.4 million. The adjusted net income was $64.5 million. That's compared to $16 million. And net income per diluted share, so after obviously share dilution, 0.26 compared to 0.15 last year. They had cash of $533.7 million as of June 30th, 2021. That's compared to $180.7 million as of December 31st, 2020. So you see that increase already. They were free cash flow positive as well so 135 million for the quarter versus 20 million last year I'll be honest I had

not looked into Neuvaid that much since their IPO and I was pleasantly surprised just to see those numbers obviously this is not a deep dive. It's just a glance of their earnings release, but I think it will warrant probably a deep dive in the near future. I think it does. It's been such a successful IPO on the TSX so far. And you know what? They're riding the tailwinds of online gambling. That is the niche that they have seemed to secure really, really well in terms of their customer base. So online gambling is being legalized across much of North America right now, kind of state by state in the US right now.

And Nouveau has been the go-to payment solution for a lot of these companies. So they've cornered that market really well. And that has been a big growth driver for them. Now, there is lots of competition in this space, as we know. But the product, as far as I know, and the research that I've done, is very compelling and has some nuances that some industries find more advantageous to use their platform. So honestly, been a great story so far. As people know on this podcast, we do love payments business. The really sticky, the secular trend of moving away from cash also helps as well. So while it's going right for this company, I think it does warrant a deep dive and we've gotten tons of requests on Twitter for it.

If you haven't followed us on Twitter already, that is at CDN underscore investing. All right. Another really interesting technology name, Unity. Now, Unity is a gaming engine. now unity is a gaming engine so it's basically a duopoly with unity and the unreal engine so revenue was up 48 percent and dollar base net retention was 142 percent and they are seeing really strong growth in customers that are paying over 100 million dollars on the platform every year so that's good to see and this is a quote here from uh from management unity continues to increase momentum in non-gaming industries in the second quarter of 2021 unity added three automotive manufacturers and began to work with consumer product brands including an eyewear manufacturer and retailer. Unity is getting traction in new markets.

And it goes on and on. The reason that I wanted to pull this away is because, as I have mentioned before, the strength of the gaming engine is not just in gaming. And that's really an interesting opportunity and long runway for growth. When I was working as an engineer, I saw people starting to use the gaming engine. Movies are starting to use the gaming engine instead of traditional CGI. Very interesting, and they're making tons of acquisitions. They just acquired a company called Pixies. They acquired something called Speedtree, and they just acquired Parsec as well.

And then one more thing from the press release on the Parsec acquisition. This transaction is an important step towards Parsec's and Unity expanded cloud vision. Creators should be able to expect they can work from any location, any device, Creators should be able to expect they can work from any location, any device, through powerful tools and seamless cloud infrastructure to deliver real-time 3D experiences. So the business is tacking on some acquisitions to help bolster the company, which is in the space of being able to provide game developers the ability to create, monetize, and deploy the solution on Unity. So the strategy is coming together. Yeah, I think there's a lot to like about Unity. And I've been, you know, you've been definitely a big proponent of what they're offering and especially their transition outside or not transition, but the use outside of what people tend to think is their niche. Obviously, video games.

I do like that they're offering more than just that. So it'll be interesting where they go. For me, it's still a wait and see because it's still a pretty fresh IPO, right? Six months or so? Yeah, it's still a relatively new IPO, but the business is not new. It was founded in 2005, and they own more than half the market share of games that are on the App Store because they came out and were the go-to game engine for app developers for video games on the platform. So it's not a new business, but it is a fairly new IPO. Well put. So it's not a new business, but it is a fairly new IPO.

Well put. So now we'll go on to a good old traditional boring company, one that I'm sure everyone knows, Berkshire Hathaway. They came out with their earnings release. I believe it was on a what Friday or Saturday morning, late Friday. It's always like that. They always do it on Saturdays. Saturday, that's it. It's always when people are not paying that much attention. So Warren Buffett and Berkshire, they just kept buying back shares aggressively instead of making sizable acquisitions. The company repurchased a total of $6 billion of

its own stock during the second quarter, bringing the six-month total to $12.6 billion. Berkshire, for context, bought a record $24.7 billion of its own stocks last year. They had $57.2 billion in revenue versus $47.6 billion last year. Earnings for railroads, utilities, and energy jumped more than 27% from a year ago in the period to a total of $2.26 billion. So that's important because if you ever look at the earnings when it comes to Berkshire Hathaway, you'll see that they're a bit out of whack. That's because it requires them, so GAAP, Generally Accepted Accounting Principle, it does require them to add their investment gains or losses, even though they're only paper gains or losses. It requires them to have them on their income statement. So it puts them really out of whack depending on how their investments have done.

So it's really interesting to look at what their revenues and earnings were excluding those investments really just looking the actual business you have insurance in there as well so anyone looking at their earnings make sure you do that and they do mention it in every earnings report that they have basically saying that the the gap metrics aren't very a good measure of their business what they did say as well as the COVID-19 pandemic adversely affected nearly all of their operation during 2020, and in particular during the second quarter. And the effects are still being felt, although they're very depending on the business. And of course, it's still 2021 is turning out to be much better than 2020 for them and as of June 30th 2021

they had 140 billion in cash versus 135 billion last year so they still have quite a bit of money on the balance sheet and the million dollar question when it comes to Berkshire Hathaway is what will they do next with that money on the balance sheet. Obviously, I think I'm not surprising anyone in saying that they'll probably buy back some more stock. And who knows if they'll purchase anything. I would be tempted to say that they will likely not unless the valuations come way, way down. Yeah, well said. And it's also 13F season right now, so for those who don't know, 13F is a regulatory filing for large fund managers and money managers to post the moves that they've made in the quarter. So I just saw Berkshires the other day,

or just very recently, I think it was today. They have been selling pharma and buying some more classic, boring businesses and furniture company like Restoration Hardware. So they're finding deals in some places. It's just, it's not the typical thing you'd want to see of Buffett deploying some of that $140 billion in cash. Because it sounds like it's the same old story for the last few years. They can't find any good deals. But I don't know.

I think they're out there, but it's who am I really to say. I like listening to their calls because not only is Charlie Munger and Warren Buffett the best guys ever, but they have such a good pulse on the economy, right? They have such a wide diversified portfolio of businesses and investments, whether it's railroads, utilities, energy, insurance. energy, insurance, they see so much of the economy. So seeing their comments on some of that stuff is always really interesting. As do-it-yourself investors, we want to keep our fees low. That's why Simone and I have been using Questrade as our online broker for so many years now. Questrade is Canada's number one rated online broker by MoneySense. And with them, you can buy all North American ETFs, not just a few select ones, all commission free so that you can choose the ETFs that you want. And they charge no annual RRSP or TFSA account fees. They have an award

winning customer service team with real people that are ready to help if you have questions along the way. As a customer myself, I've been impressed with Questrade's customer service. Whenever I call or email, every support rep is very knowledgeable and they get exactly what I need done quickly. Switch for free today and keep more of your money. Visit questrade.com for details. That is questrade.com. Calling all DIY, do-it-yourself investors. Blossom is an essential app for you. It has been blowing up with now more than 50,000 Canadians plus and growing who are using the app. Every time I go on there, I am shocked. The engagement is amazing. This is a really vibrant community that they're building.

And people share their portfolios, their trades, their investment ideas in real time. And it's all built on the concept of transparency because brokerage accounts are linked. And then once you link your brokerage account, you can get in-depth portfolio insights, track your dividends, and there's other stuff like learning Duolingo style education lessons that are completely free. You can search up Blossom Social in the app store and join the community today. I'm on there. I encourage you go on there and follow me, search me up. Some of the YouTubers and influencers and podcasters that you might know, I bet you they're already on there. People are just on there talking, sharing their investment ideas, and using the analytics tools. So go ahead, blossom social in the app store, and I'll see you there.

Speaking of a business disrupted by the economy, which is auto, auto companies are having a tough time making cars because of chips. So Magna International, the TSX company, sales did double to $9 billion, reflecting global light vehicle production of increase of 58%. But keep in mind, this is from a very depressed level of Q2 last year. For instance, last quarter, they did $ 10 billion sales, like first quarter of 2021, which is 1 billion more than the quarter they just did. So you see that big 58, you see that double of sales from the previous quarter, like in the previous year, and just know that things looked a lot different this time last year. So, auto, when it comes to guidance, it's very hurt by the shortage of chips. And it's a very heavily complicated supply chain.

It's all connected. So, if there's a tier 3 supplier that can't make a small part for a tier 2 supplier, then the original manufacturers, the OEMs, they can't make cars. manufacturers, the OEMs, they can't make cars. So I know I'm getting stories of friends who ordered some new truck or whatever it is back in January and they still don't have it in hand. So they have guided for continued issues with their supply chain and chips. So on the call, they go, you know what, Last year is rough. And this is also looking pretty hard as well. So it's an interesting problem that they do have. However, they are a resilient business. They are very good at what they do.

They manufacture cars. They manufacture car parts. And they are leaders in this space. And now the new CEO is we used to be the chief technology officer. So he's steering the business to to where the puck is going. And I think they'll be just fine. Yeah, I don't have anything that there, you know, that space better than I do. Now we'll move on to Coinbase. And I'll be talking a bit more about sequential quarters here. I will be referring to that. So comparing from Q1 of 2021 to Q1 of 2022. The reason why I'm doing this a bit different with

Coinbase compared to the other ones is volume with crypto exchanges can fluctuate quite a bit. And I think a reflection of what was going on earlier in the year especially when you're we were seeing all-time highs with Bitcoin for example and aetherium it'll be a better indicator for them compared to what was happening last year especially since there's been a much stronger adoption in the past year as well So felt like it was better metrics here. Retail monthly transaction users. So MTU grew to 8.8 million. That's up 44% from Q1 of 2021. on the platform of $130 billion versus $223 billion in Q1. So we see a decrease here. I didn't go through the whole filing, but I would assume that's because people are most

likely transferring to cold storage. For those of you who are not sure what cold storage is, it's essentially outside of an exchange. So you're the own uh if you'd like uh custodian of your own crypto that's probably the easiest way i can put it they had net simon started to interrupt but i i don't follow the business well but when i see assets on platform of 180 billion versus 220 30 does is that also affected by the decrease in the price of the actual coins like Bitcoin? Yeah, there could have been an effect there. A lot of people who buy Bitcoin, though, will just transfer it to cold storage.

So I would assume this is probably the biggest driver. But of course, I'm sure some people bought it high, sold low. That would not be the first time. But my guess would be that a lot of people just transferred to cold storage. That would be the reason. But like I said, I just kind of had a high look of their earnings release. It's possible I'm a bit off here, but that would be my guess. Net revenue was $2.03 billion versus $1.6 billion in Q1. Net income of $1.6 billion versus $771 million in Q1. 10% of the top 100 largest hedge funds by reported assets under management have chosen to onboard with Coinbase. So they did mention in their letter presentation, retail provided $1.82 billion in

transaction revenue versus $102 million for institutional. That's really important because that's despite the fact that retail volume was only 31% and the balance of that was mostly institutional. So we can see that retail is much more profitable for coinbase here versus institutional and that's without going to deep dive or anything that to me is a bit of a risk for coinbase because they already charge pretty high fees for retail investors and if we've seen anything with like brokers and so on over the years is there tends to be a race to the bottom when it comes to those type of fees. And I don't see like Coinbase having that much of a moat. And as we go through the years, I can see that profitability going down as you get more competitors, people get more comfortable with other platforms as well.

Right now, they're the biggest platform, but that's definitely a bit of a risk right there. Yeah, you're right. Good point. Because when you're looking at this business, the obvious comparison are some of these brokerages that we use to buy and sell securities in our investment portfolios. And it has been a complete race to the bottom in the US. Now, you're seeing some of that pressure here in Canada as well with the commission on a trade has become so commoditized. It's a good point to bring up and we'll have to keep an eye on those fees for the retail customers. All right, moving on. Squarespace. Squarespace is the company that lets non-technical people build websites for their company. Total revenue is up

31% to $196 million. Total ARR, that annual recurring revs, was up 28% year over year. They're guiding for 26% revenue growth for the entire fiscal. This is from Crunchbase, the founder. I was just curious about who started this company. It is still run by Anthony Casalina, who started it. Here's from Crunchbase. Anthony Casalina is the founder and CEO of Squarespace. When he started it in his dorm room, he acted as the sole engineer, designer, and support representative for the entire Squarespace platform, allowing for it to be

a stable business from the outset. Now, this is really interesting. And I wanted to pull this up because there must be so much support requests for a company like this that non-technical people need support when they're building their companies. And to think that he was supporting that entire side of the business is really interesting because that's when he's talking to users and finding out what people really want. And that's why I think personally, Squarespace is the best product out there. I have familiarity with using all of them. So it is a competitive space, but Squarespace is a great product for non-technicals. I have extensive experience working with these website builders. So if you're looking to build one quickly with the most intuitive interface the shortest learning curve Squarespace

is the best from my personal opinion their templates out of the box are also the best if you're a restaurant or other SMBs so I like the business long term I'm surprised it's not growing faster in this environment if i was completely honest but it does speak to how much competition there is yeah yeah well but i mean i think i used it a bit when we used to uh use uh the old platform for the podcast right so it was pretty user-friendly i thought obviously without creating the website itself but um no work well i i say to people i mean if you can use PowerPoint, you can use Squarespace, because it's like drag and drop in terms of images and text and everything.

Yet it looks good. So, I mean, yeah, it's a good product. So now for the companies, two companies that were really affected by the pandemic in the same space I'm gonna do these two back to back so AMC and Cineplex obviously Cineplex being our the Canadian counterpart the AMC does also have some theaters in Canada but not as many as they do in the US so AMC Q2 2021 versus Q2 of 2020 obviously keep in mind what was going on Q2 of last year. There was not a lot of people going to theaters. So the revenue was $444 million this year versus $18.9 million last year. Net loss of $344 million versus $561 million last year.

They have $1.8 billion in cash versus $308 million last year. And they did raise some capital, which came primarily from stock issuance, which I think was a pretty good call on their part. Capitalize on that whole meme stock or meme stock, as I would say in French. Still a lot of debt on the balance sheet, at $5.5 billion of debt. For in terms of future outlook, there was an interesting quote from Adam Ayer on the CEO saying, AMC's journey through this pandemic is not finished and we are not yet out of the woods. However, while there are no guaranteed as to what the future will bring

in a still infection impacted world, one can look ahead and envision a happy Hollywood ending to this story for AMC. So we'll see if that comes true or not. They're definitely acknowledging that there's going to be a bumpy road ahead. They don't really have any guidance going forward. I think that's smart because we really don't know what's going to happen with the Delta variant or any other variant that we might not be, we might not know to this point. So it'll be kind of interesting just to follow them. I would not touch AMC with a 10-foot pole, but just I like watching on the sideline. And then as a contrast, Cineplex, again, Q2 of this year versus Q2 of last year. So $29 million in cash as of June 30th versus $13.8

million last year. So not that much cash, but again, we're talking about a much smaller operation compared to AMC. $755 million in long-term debt versus $664 last year, which was all current debt last year. So this tells me without going through their whole financial statements throughout the last year that they were able to refinance. I don't know to what percentage rate they refinanced, but because it was current debt last year and now is long-term debt that means they did refinance uh 64.9 million in revenue versus 21.9 million last year and people will actually say oh that that's you know it wasn't that low last year well it was uh just pocket change when it came to the box office revenue their revenue was really media and other

media I think they have they have stores on smart TVs that they can they rent movies and they get cuts out of that so it was a mix of different things but clearly food services and box office was extremely low last year and then lastly for this year 103 million net loss versus 98 million last year. So about the same. You may wonder why. I mean, it's pretty simple. Yes, they had higher revenues, but that also comes with higher expenses, including higher interest expenses that I saw on their earnings statement as well. on their earning statement as well. These are really two challenge companies.

They'll be super dependent on what's going on with COVID vaccination rates, all of that stuff, future variants, social distancing in theaters. Personally, I'm not very interested in these companies, but it is interesting to see the difference between the two and obviously versus last year. As do-it-yourself investors, the difference between the two and obviously versus last year. and with them, you can buy all North American ETFs, not just a few select ones, all commission free so that you can choose the ETFs that you want. And they charge no annual RRSP or TFSA account fees. They have an award-winning customer service team with real people that are ready to help if you have questions along the way. As a customer myself, I've been impressed with

Questrade's customer service. Whenever I call or email, every support rep is very knowledgeable and they get exactly what I need done quickly. Switch for free today and keep more of your money. Visit questrade.com for details. That is questrade.com. Calling all DIY do-it-yourself investors. Blossom is an essential app for you. It has been blowing up with now more than 50,000 Canadians plus and growing who are using the app. Every time I go on there, I am shocked. The engagement is amazing. This is a really vibrant community that they're building. And people share their portfolios, their trades, their investment ideas in real time. And it's all built on the concept of transparency because brokerage accounts are linked. And then once you link your brokerage

account, you can get in-depth portfolio insights, track your dividends. And there's other stuff like learning Duolingo style education lessons that are completely free. You can search up Blossom Social in the app store and join the community today. I'm on there. I encourage you go on there and follow me, search me up. Some of the YouTubers and influencers and podcasters that you might know, I bet you they're already on there. People are just on there talking, sharing their investment ideas and using the analytics tools. So go ahead, blossom social in the app store, and I'll see you there. So I could rant pretty quick here about AMC because, I mean, this is a business in absolute structural decline pre-COVID. Let's have a flashback. Let's go back two years. It's 2019. The movie theater business has been in structural decline for a while now already. Then you get hit with this global

pandemic where people can't congregate. What does their stock do? Go nothing but absolutely bonkers in an upward direction because of the trading volume from people pumping this thing. And it's still happening. It's still up there. So let me just give you some examples here. AMC trades at 21 times sales today. 21 times sales. And if people who are familiar with what that means, is that a business that is like doubling revenue with really high margins and has tons of secular trends, trades at over 20 times sales. Not a movie theater business that was already struggling and has low margins. And so for comparison, Google, maybe the best business on the entire planet, trades at four times sales. This is a complete joke and people who are still in this

do not expect returns moving forward here. And if you do get them, it's not because of any real proper due diligence. There's just no expected rate of return here, only negative. So be careful out there because if you go on a stock picking forum or anything, you'll see people pumping AMC left, right, and center. Yeah. And just to add one last thing, obviously Cineplex is a bit in a different boat. So you'll see that their stock is way, way down from a year and a half, two years ago, and there hasn't been that much exposure, but you're still dumpster diving. Let's be clear. It probably is a better value play, but I would make a bet that, or an argument that it's probably more of a value trap than a value play cineplex might be a value trap but at least there might be some built-up upside because it doesn't trade at 20 times sales for a business that is in complete decline um yeah i rest my case let's talk about a company that is benefiting from this environment, and that is

Chegg. Chegg is an $11 billion in market cap company that serves students. They have tools, resources, problem sets, solutions for students on a subscription basis. So I've used it a couple times in university. It's actually been around since 2005, believe it or not. They had solution sets for textbook questions, which helps students with studying and assignments. And these solution sets are used pretty widely by the engineering students in my circle when I was there. Because if you're studying and you get stuck on an exam or on a problem like while you're studying for an exam, it'll be a similar type engineering problem on the exam and you're going to have to know how to do it the next day, right?

So these are key. And if you get stuck on a problem, it's killer. You lose so much time and you have to be a machine, right? You might have six midterms in two weeks, assignments, lab reports, and then how are you going to fit it all in when there are cheap beers at the campus on Thursday, right? You got to be on top of this stuff, right, Simon? So now the business is obviously taking off with remote learning. And if you don't have that one-on-one support from teachers in person or classmates, you need that extra help.

So revenues were up 30% year over year to 198.5 million. So they're about to hit 200 million revs. The services business grew 38% to 135 mil, and it makes up about 87% of revs. Net income was 32.8 million so they they are profitable from a net income perspective um and this company still is small and um i bet you that it's very in pockets of universities and locations that it's big in because it it is probably a grow by word of mouth type business because i have used it and seen it and never seen any paid marketing from them. So I still think they have a long runway with this remote learning environment. I think it's somewhat here to stay, maybe in a hybrid environment. And students need more support if

they're going to be remote. Yeah. And I saw somewhere that they said they're trying to also address the issue that multiple students are using the same account. So that is something else. I'm busted. Yeah, I think there was like six of my friends all on the same Chegg account. So we'll see. I guess they're finding an opportunity there to probably increase revenue. Now on my next name, Well Helped Technology.

It's not a company that I follow all that much, but I know that people that listen to this podcast, just how often it's been mentioned. So I know there's a few holders for sure listening to it. They had revenue of $61.8 million during Q2 2021 compared to $10.6 million Q2 2020. That's an increase of 484%, although it was primarily driven by the CRH acquisition, which accounted for revenue of $36.7 million during the quarter. CRH, for context, provides gastroenterology, GI is the short for that. It provides that for the community with

innovative products and services. It's a bit of a head scratcher, I'll be honest, to why they purchased that company because primarily they own clinics, as you'll see a bit later on, and they do also virtual health services. So I'm not sure how exactly that fits in. I know it's health related. It's just you have a company that's selling, I know, anesthesia products for gastroenterology and other types of products with medical clinics, with virtual services. It's a bit of a head scratcher for me, but I know they were profitable before they were purchased by WellHealth, so I guess that's a plus there. WellHealth virtual services

increased to $12.5 million in Q2, representing a 432% year-over-year growth as compared to virtual services revenue of $2.3 million in Q2 of last year. The company delivered 559,000 total omni-channel patient visits in Q2 of this year. That's an increase year-over-year of 173%. Inpatient visits accounted for 241,000 during a quarter. That's an increase of 228% compared to last year. On July 15, 2021, they completed its acquisition of My Health, a leading primary care, specialty care, telehealth services, and accredited diagnostic health services provider that owns and operates 48 locations across Ontario. And now they are the largest owner-operator outpatient medical clinics in Canada with 75 combined clinics. So we're seeing, and that's what we had mentioned when we had talked about Well Health,

is just it's primarily a clinic play. You can tell they're trying to diversify. My big thing is there does not seem to be that clear of a vision for them. That's probably my biggest thing. I get you're in healthcare, but usually the companies that do best in healthcare will be more targeted in certain type of segment. But again, looks like a very good quarter overall for them.

Yeah, we've talked about this one a few times. They're growing pretty quick, and they're making tons of acquisition. They're deploying lots of capital. And the only thing that we have mentioned time and time again is when you're investing in a company, you are taking a leap of faith in the ability and the execution of management. in the ability and the execution of management. Now, I have dove deep into the history of the founders of Well Health, and they are actively trying to make the company on investor relations seem like this very innovative technology play when it's really just a buyer and owner of clinics. Now that's fine. That's a legit business and it is profitable. But I was telling Simon

yesterday, I got an advertisement on my Instagram account for me to basically invest in well health stock. Now that is just like ding, ding, ding, red flag. So I just, I can't wrap my head around it. And if the, if the business does well, and if I'm wrong about it, that's okay. I'm happy to sit on the sidelines here, but when there's smoke, there's fire. And I just, I don't trust what's going on. I don't like what's going on. And so I'll be on the sidelines. Yeah. And just that's a clear demarcation, right? There's nothing wrong with a company advertising their services or what they offer their products. But I'm with Brayden on that. I really hate when I start seeing ads of a company that's publicly listed and basically doing stock promotion.

So I haven't seen any of WealthHelp myself, but I've seen it of other companies. And that's always a big red flag because why are you spending money on that? You're not helping grow your business. You're really just spending money to get people to invest in your stock. And oftentimes there's other motivations for that with potential lock-up periods expiring and then you know insiders wanting to unload their shares i'm not saying that's the case with well health i'm just saying that's something that can happen when you can when you see that when there's smoke there is fire and it's given me

a sketchy vibe and it and it always has it never hasn't like we've been talking about this company for two years you're gonna get dms after this right oh yeah 100 i will i know some people that love the company and that's fine keep holding it you've done well you've done well i will never knock that straight up like, I love when our listeners are successful with their investments, but there's some weird thing going on over there and I don't know what it is. And that's all we can say right now. All right. WSP, the Canadian engineering firm, revenues were up.

revenues were up they reached 2.6 billion up 19.3 and net revenues were up 16.1 percent compared to this time last year they did buy a company called golder last year which is an environmental engineering firm golder delivered better than anticipated results with double digit organic growth in the second quarter of 2021. And integration activities are progressing very well. This was a multi-billion dollar acquisition. That's why I continue to bring that up. And Golder bringing in double-digit organic growth for a large mature engineering firm is very impressive because this company, WSP, grows very, very slowly organically, but quickly via acquisitions. So it's good to see that some of their acquisitions are actually bringing in organic growth.

That's when you can find one of these roll-up strategies do really, really well. Financial outlook for 2021 increased with adjusted EBITDA and now expected to fall between the range of $1.275 billion and $1.325 billion, which is up from before. So they're guiding for better EBITDA for the rest of the year. This company is executing really, really well. The acquisition strategy is really strong and you're seeing some organic growth come out of the business. So that's really good to see. You're seeing some organic growth come out of the business. That's really good to see. I've owned it for a really long time.

And I think roll-up strategies in professional services work extremely well. And the reason for that when you're rolling up a fragmented industry like engineering across the globe is you can cross-sell various disciplines of expertise. So if you're a soil expert and you need someone to do some civil work as well after they do some soil samples, if you now have a firm that does multidisciplinary, you can start cross-selling these professional services. And that's what they do, and that's why it's worked so well. WSP has been a great compounder. All right, guys, that does it for this week.

If you haven't checked out Stratosphere, go to getstockmarket.com. We appreciate you guys very much for listening, and we will see you next week. Take care. Bye-bye. The Canadian investor is not to be taken as investment advice. Braden or Simone may own securities mentioned on this podcast. Always make sure to do your own research and due diligence before making investment decisions.