WANdisco

LN: WAND

Market Cap£148m

Last Close 247p

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 Oracle, Amazon, IBM and Microsoft.

Investment summary

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 up significantly. The company’s momentum is in line with our expectation that as WAND continues its transition to a consumption-based model, it should generate more predictable revenues. This is shown by the recent growth in remaining performance obligations (up 49%). Our estimates for FY22 may be conservative, especially if WAND continues to build on its momentum, but we leave our forecasts unchanged pending the FY21 results announcement.

Y/E Dec	Revenue (US$m)	EBITDA (US$m)	PBT (US$m)	EPS (fd) (c)	P/E (x)	P/CF (x)
2019A	16.2	(11.7)	(18.4)	(38.8)	N/A	N/A
2020A	10.5	(22.2)	(30.4)	(57.3)	N/A	N/A
2021E	6.0	(29.2)	(37.3)	(59.3)	N/A	N/A
2022E	10.0	(24.7)	(31.8)	(50.1)	N/A	N/A

Industry outlook

The shift to the cloud is arguably the most significant trend in enterprise computing today. It enables enterprises to reduce the cost of storing huge and rapidly expanding datasets, while enhancing the performance of business-critical functions. By providing guaranteed consistency for these datasets, WANdisco’s LiveData accelerates this shift in three ways: data migration, hybrid cloud and multi-cloud.

Last updated on 24/05/2022