Company profile - Wandisco feature image - 28062019 - JPG

WANdisco

LN: WAND

£257.2m market cap

570p last close

WANdisco’s proprietary replication technology enables its customers to solve critical data management challenges created by the shift to cloud computing. It has established partner relationships with leading players in the cloud ecosystem including Amazon and Microsoft.

Investment summary

WANdisco continues to make substantial strategic progress. It recently announced a strategic deal with a major enterprise cloud vendor for both data migration and replication, while new partnerships with Neudesic and Databricks aim to address the opportunity to migrate on-premise Hadoop data to the cloud. The full financial benefits of these partnerships will take time to feed through but in our view the company’s exceptional growth prospects and potential strategic value justify a premium rating.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2017A 19.6 (0.6) (7.8) (19.4) N/A 374.1
2018A 17.0 (9.4) (16.3) (37.5) N/A N/A
2019E 31.3 (0.4) (7.4) (16.9) N/A 41.8
2020E 40.7 6.2 (0.8) (2.0) N/A 43.5
Last updated on 18/09/2019
Industry outlook

WANdisco has set out its ambition to generate annual revenue of at least $100m in the next three to five years from a combination of 1) data migration; 2) hybrid cloud; and 3) multi-cloud. Ahead of a shift to recurring revenue visibility is limited but our scenario analysis suggests $84m by FY23 as a base case (a fivefold increase from FY18 levels).

Last updated on 18/09/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 23.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 16.3 4.8 (19.3)
Relative* 12.5 5.7 (19.0)
52-week high/low 781.0p/340.0p
*% relative to local index
Key management
David Richards CEO
Erik Miller CFO

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