Company profile - Wandisco feature image - 28062019 - JPG

WANdisco

LN: WAND

£376.3m market cap

780p 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’s update on 25 March stated that momentum in the business since the trading update on 4 February has been ‘very encouraging’. The company has secured a $1m contract with a large media and telecoms company and (more significantly) confirms that its Fusion product is on track for full availability with Microsoft ‘in the next few weeks’. As previously highlighted (see our last update note), we believe this will be a catalyst for a sharp acceleration in growth. Further details will be provided at the results (now postponed to June).

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 519.0
2018A 17.0 (9.4) (16.3) (37.5) N/A N/A
2019E 16.0 (14.0) (21.1) (45.7) N/A N/A
2020E 28.0 (5.3) (12.3) (25.0) N/A 75.0
Industry outlook

WWANdisco 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 04/06/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 18.3
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 42.6 43.4 58.4
Relative* 29.1 55.0 78.2
52-week high/low 820.0p/338.0p
*% relative to local index
Key management
David Richards CEO
Erik Miller CFO

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