Company profile - Wandisco feature image - 28062019 - JPG

WANdisco

LN: WAND

£278.8m market cap

562p 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

Sales of $10m in H219 fell short of the $18m implied by FY19 guidance. WANdisco will now implement large Microsoft co-sell deals via its new integrated platform; these deals are still in the pipeline and it is confident they will be closed in H120. The lower H2 run rate leads us to cut FY20 sales to $28m. However, the commercialisation of the Microsoft platform is on track and should drive a sharp acceleration in growth through the year.

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 408.3
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 59.0
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 25/02/2020
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 23.5 54.6 (20.7)
Relative* 26.3 49.6 (24.4)
52-week high/low 781.0p/338.0p
*% relative to local index
Key management
David Richards CEO
Erik Miller CFO

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