Expert System

MI: EXSY

€127.5m market cap

€2.51 last close

Expert System has developed and patented an AI-based technology platform that extracts useful information from unstructured text using a unique mix of natural language understanding and machine learning algorithms and applies it to verticals such as enterprise search, customer experience management and big data analytics.

Investment summary

Expert System reported a 19% y-o-y decline in sales in H120, as COVID-19 restrictions made it harder to sign new business in Q220. Combined with increased investment as part of the company’s new five-year strategy (Path to Lead), this resulted in an EBITDA loss of €4.6m compared to €0.4m in H119. So far in H220, the company is making good progress in executing this plan, with funds raised to support the required investment, a rebrand to expert.ai and technology development on track to launch the new end-to-end SaaS platform in Q121.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 30.5 4.6 (0.6) (1.4) N/A 34.8
2019A 33.7 5.5 (0.5) (1.6) N/A 39.1
2020E 31.2 (0.4) (7.7) (15.5) N/A N/A
2021E 32.5 (5.7) (13.5) (24.0) N/A N/A
Industry outlook

Ever-increasing amounts of data are being produced, 80% of which are estimated to be unstructured. The need to derive useful insights from this growing body of data is driving the demand for cognitive computing and smarter artificial intelligence solutions, such as those offered by Expert System. ResearchAndMarkets estimates that the global text analytics market was worth $4bn in 2018 and is forecast to grow at a CAGR of 17.3% to 2023.

Last updated on 20/01/2021
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Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 21.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (2.0) 19.0 (19.4)
Relative* (4.8) 2.8 (14.3)
52-week high/low €3.1/€1.5
*% relative to local index
Key management
Walt Mayo CEO
Valentina Biscotti CFO
Marco Varone Founder and CTO
Stefano Spaggiari Founder and executive chairman

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