WANdisco - Momentum in IoT drives bookings upgrade

WANdisco (WAND) has reported record bookings of $34m in Q322 and $61.2m YTD (up 1,649% y-o-y and ahead of our FY forecast of $60m), driven by several large contract wins with repeat customers and across multiple use cases. The company’s cash balance strengthened to about $26.3m, reflecting the strong bookings and that a number of contracts had 50% up-front cash payments. The statement confirms management expects to show more progress in client wins and consumption. We raise our FY22 bookings and

Hybridan Small Cap Feast 04/10/22

Dish of the day Joiners: Milton Capital plc (MII.L) has joined the Main Market. Leavers: No leavers today. What’s cooking in the IPO kitchen?** TECC Capital plc, to be renamed EDX Medical Group, intends to join the AQSE Growth Market. EDX operates a molecular biology and diagnostics laboratory in Cambridge, UK, from which it performs research & development, provides Polymerase Chain Reaction (PCR) testing and genomic sequencing services, undertakes quality assurance and has established expertise

WANdisco - $7.1m deal provides further upside potential

WANdisco has announced a $7.1m follow-on agreement with a large European automotive components supplier. This takes total disclosed bookings this year to $59.1m versus our FY forecast of $60m, meaning that upside to this KPI forecast now looks very probable. The Q3 update will give us more visibility on the rate at which customers are starting to use this data – which will see bookings flow through to the P&L. We will revise our estimates at that stage but see sizable uplift potential at all KPI

WANdisco - Internet of things provides the ‘killer app’

WANdisco’s (WAND’s) capital markets day (CMD) underlined the success of its transition to a cloud-centric commit-to-consume (CtC) model and the potential of its offering for Internet of Things (IoT) use cases, which looks set to drive a significant inflection in growth. Management sees opportunities across multiple industries with a pipeline boosted by a number of factors, including product improvements, restructuring the sales and marketing teams, and ever improving reference ability with tier

Hybridan Small Cap Feast 21/09/2022

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Independent Living REIT plc, intends to float on the Premium Segment of the Main Market. The Company's investment objective is to address the shortage of high-quality supported housing, delivering capital growth and inflation-linked income returns for its investors whilst providing a fair deal for society through savings for the UK taxpayer, and improved outcomes for residents. Raising £150

WANdisco - Record $25m contract with top 10 global telco

WANdisco’s (WAND’s) $25m commit-to-consume agreement with a top 10 global telco is the company’s largest ever by some margin. This contract also adds credibility to management’s ability to successfully execute its growth strategy and we raise our estimates for FY22 bookings and ending remaining performance obligations (RPO). Until we gain more visibility on the rate of data consumption, we leave our revenue estimates unchanged. When considering the expected expansion of IoT, WAND’s robust pipeli

WANdisco - Reaching a key inflection point

WANdisco’s (WAND’s) H122 trading update reflects the strong momentum seen in its recent multi-million-dollar contract wins. Its two primary key performance indicators (KPIs), bookings and ending remaining performance obligations (RPO), were both up more than seven times. Furthermore, the scalability of its commit-to-consume model was demonstrated as existing customers signed multiple follow-on contracts. Evidence continues to build that WAND is successfully executing its growth strategy and reac

Hybridan Small Cap Feast 04/07/2022

Joiners: Re-admission of 888 Holdings to the Main Market following the reverse takeover of William Hill. Leavers: Umuthi Healthcare Solutions has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide custo

WANdisco - Another multimillion-dollar IOT deal

WANdisco’s strong run of customer wins continues with a $5m minimum value commit-to-consume agreement with a large automotive components supplier. With $18.1m of deals announced over the past week, evidence is building that WANdisco is now hitting an inflection point. We will review our estimates following the Q2 trading update (expected in the first half of July), but our FY22 looks increasingly conservative and a continuation of the deal flow momentum seen so far this year would also lay the p

WANdisco - Record win with existing telecom customer

WANdisco (WAND) announced its largest ever contract today, a commit-to-consume agreement valued at $11.6m with a top 10 global telecoms company. This contract is the third the customer has signed since its initial agreement in March 2022, and it has now entered into agreements worth a cumulative total of $14.3m. This progression of contracts displays the scalability of WAND’s commit-to-consume model. Furthermore, LiveData Migrator’s (LDM’s) ability to facilitate multi-cloud strategies (moving da

WANdisco - Transitioning to consumption-based model

WANdisco’s (WAND’s) FY21’s results reflect its transition from a subscription-based to a consumption-based model. As expected, revenue fell to $7.3m versus FY20’s $10.5m. As part of its transition, WAND announced two new KPIs: bookings and remaining period obligations (RPO, a forward-looking measure of revenues). In FY21, bookings grew 17% y-o-y to $11.9m, while RPO rose 92% y-o-y to $9.4m. The FY21 results were driven by multiple factors, including the general availability of LiveData Migrator

WANdisco - Multiple contract wins bolster momentum

WANdisco’s (WAND’s) Q122 trading update demonstrated that the momentum we reported on earlier this year has continued, with bookings and remaining performance obligations (RPO) up significantly to $5.8m (+427% y-o-y) and $14m (+233% y-o-y), respectively. Deals were won across a range of industries and use cases, with computer hardware, telecoms, insurance, and IoT and multi-cloud being key. The company’s momentum is in line with our expectation that as WAND continues its transition to a consumpt

Hybridan Small Cap Feast 23/03/22

Joiners: RC365 Holding has joined the Main Market (Standard). Founded in Hong Kong in 2013, the Group is a fintech solutions service provider in China and Hong Kong, and is looking to expand its payment gateway services into Europe and the UK. In connection with Admission, the Company successfully raised approx. £2m for the Group at a price of 6.2p per ordinary share. At the Issue Price, the Company's market capitalisation will be approx. £6.7m. Leavers: No Leavers Today. What’s cooking in the I

WANdisco - Termination of coverage

Edison Investment Research is terminating coverage on PIERER Mobility (PMAG), Allarity Therapeutics (ALLR), WANdisco (WAND), Quantum Genomics (ALQGC), and Mondo TV (MTVI). Please note you should no longer rely on any previous research or estimates for this company. All forecasts should now be considered redundant.

WANdisco - Momentum in bookings and RPO

In its FY21 trading update, WANdisco (WAND) reported strong momentum in both its bookings and remaining performance obligations (RPO), up 17% and 92% y-o-y in FY21, respectively. Moreover, it saw strong trading in Q421 as it continues its transition to a consumption-based model, with the recent sales reorganisation appearing to bear fruit. Management expects FY21 revenues to be in line with current market estimates and cash to increase 32% y-o-y to $27.8m. With confidence in its growing pipeline

Trading update

Pelatro's trading statement shows that a stronger USD in 2022E, combined with delays in certain projects, will impact current year revenue and profitability. An increase in the Group's exposure to the Indian Rupee (INR), due to major Indian contracts being priced in local currency, has led to a lower USD revenue, as the INR weakened by over 8% YTD versus the USD. The company expects the FX headwinds combined with certain mainly change request revenue, to reduce Group revenue by $0.7m to $0.8m in

LIBERUM: Cerillion* - The future is bright

FY23 profit beat could be silly

FY22 results are comfortably in line with October’s update, as CER delivered +26% y/y sales growth to £32.7m (PY: +25%) whilst maintaining its class-leading PBT margins at 35%, such that u/l PBT grew +28% to £11.6m. This translated to £9.9m FCF, after 100% cash conversion. Somewhat bizarrely the most interesting data point in all these stellar numbers is that CER materially beat consensus notwithstanding an unusual £1.8m bad-debt provision (i.e. without, CER would have beaten estimates by even m

Morning Note – 16 November 2022

Hybridan Small Cap Feast 16/11/22

Dish of the day Joiners: BWP REIT joins the Wholesale Segment of the International Property Securities Exchange (IPSX). BWP REIT is a newly formed single asset company and has raised £35m by issuing 35m new ordinary shares at 100 pence per share to acquire Bridgewater Place, an office-led mixed use property in central Leeds and valued at £63m. The property is one of the tallest buildings in Yorkshire, comprising 234,000 sq. ft of office space, and is close to 90% let to EY, as well as multinatio

TPXimpact Interim Results

TPXimpact has announced interims that are reassuring following the September AGM and confirmed guidance for FY23 and 2024.

Upgrades on contract wins

Gresham announces contract wins today that cause it to expect FY22 revenues and earnings to be ahead of expectations. The first is a £1m over 5 years Clareti deal to replace a legacy incumbent solution for one of Europe’s largest privately owned banking and financial services groups (new logo). The second comprises renewals and extensions across a broad array of products and services with Gresham's largest customer, ANZ. Furthermore, management expects to close further subscription business in Q

iomart - Energy costs de-risked; positioning for growth

Interims to September are in line with the October trading update. The profit downgrades at the trading update related to revised expectations for the pace of margin improvement; the outlook today is unchanged, but provides reassurance that further risks from energy price movements have been appeased, with the full extent of the energy price uplifts passed on to customers. We lift revenue +£6m in both FY23 and FY24; and lift cost of sales the same amount, leaving profit forecasts unchanged. Expe

Morning Note – 6 December 2022

Altitude Group plc (ALT LN) - Soaring higher

Altitude has released H1 results for the period to 30 September 2022 showing a robust expansion of its Services and Merchanting programmes. The Group has grown its global AIM Smarter membership, increased average revenue per member, and expanded Merchanting by recruiting more high-quality sales affiliates. Last week’s revenue and profit upgrades highlight strong ongoing momentum from Altitude. We continue to believe the Group is well placed for accelerated future revenue growth, with operational

Cenkos: Shearwater Group Plc -- FX Charge

The interim accounts bear an unrealised FX charge which has led us to review our forecasts. This liability is now largely hedged and the recent strengthening of GBP/USD has reversed some of this loss. Net cash is lower due to the payment profile associated with a material contract won last year but this will unwind over the next two years. We see these items are speed humps and do not change our valuation of the stock.

NTU contract pains

Tribal has announced that the implementation and delivery of its contract with NTU has continued to be more complicated and more costly to deliver, meaning this will be an onerous contract to the tune of £12m. This compares to what could have been £7m GP, so a £19m delta in economic value or FCF over the initial contract term. How this translates to numbers – FY22e & FY23e revenue is unchanged, GP reduces (to reflect higher costs) by £-4m in FY22 and £-9m in FY23 and u/l cash opex stays the same

Interims – slower than expected pipeline conversion

H1 results show good growth, but it is apparent that recent political turmoil has contributed delays in implementing central funding initiatives for the much-needed digitisation of the NHS. INHC remains well-placed for when that happens and, importantly, does not expect opportunities in the pipeline to fall away, more that they will be deferred into FY24. We update our forecasts for FY23 accordingly and await more detail on planned cost savings for FY24. Despite recent weakness, it is worth reme

In line FY22 prelims

FY22 was a pivotal year for INHC, with the transformational acquisition of Attend Anywhere completed and integrated, with all key contracts renewed. Results (pre-IFRS3) are in line with expectations, with £12.1m of pro-forma revenues, Adj EBITDA at breakeven and cash at period end of £7.5m, which has increased further post-period end as key contracts have renewed. Ahead of the H1-23 interims due next week, we make no changes to our forecasts at this stage and continue to believe the company rema

Morning Note – 30 November 2022