Gold.com (GOLD): On A Gold Rush With Cracks Underneath

Gold.com (NYSE:GOLD) reported a strong fiscal fourth-quarter and full-year performance on September 2, with revenue nearly doubling to $5 billion in the quarter and $25.5 billion for the full year. The company's growth is driven by acquisitions, including Monex and Sunshine Minting. Gold ounces sold increased by 51% to 521,000, and the company now supplies minting services to Costco.

However, the business is struggling to convert revenue into profit, with gross margins falling to 2.2% and net income increasing by only 18% to $12.2 million. Diluted earnings per share remained flat at $0.41. The company's cash reserves surged to $578 million, allowing for a special dividend and share buybacks. While management is optimistic about the company's future, it faces challenges in converting revenue into profit, especially in a higher interest rate environment.