FATN
The gist
FatPipe came out of Q1 looking pretty spry: sales rose about 27%, income jumped 65%, and EPS climbed from 5 cents to 9 cents year over year. Not bad for a company that’s also bragging about still running 92%–93% gross margins — the kind of number that makes most software folks do a double take.
Bigger deals, fewer crumbs
Management said the quarter was supported by larger deal sizes and a growing partner network, including a push with TD Synnex. That matters because FatPipe isn’t just trying to sell more stuff; it’s trying to sell bigger stuff. It also highlighted a $7 million deal that was partly booked this quarter, which is the sort of chunky number that can make a small-cap balance sheet look a little more grown up.
The channel hustle
FatPipe is doubling down on the channel like a startup that just discovered referrals. The company said it’s expanding its sales team from 24 to 36–38 by fiscal year-end and spending more on marketing and partner development. Translation: they’re trying to buy more reach before competitors steal the spotlight.
Why investors should care
FatPipe also leaned into its VeloCloud conversion program, saying it’s pulling customers from competitors like Cisco and VMware. Add in new cybersecurity products, AI-enabled network/content management, and strong Gartner ratings, and you get a company trying to turn solid niche execution into a bigger growth story.
Big picture: the quarter wasn’t just good — it was the kind of steady, high-margin progress that can keep a tiny name interesting when the broader market is busy doom-scrolling.