Company profile - Wandisco feature image - 28062019 - JPG

WANdisco

LN: WAND

£318.3m market cap

620p 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 has raised $25m (gross) through a placing of 3.1m shares at 650p. The proceeds will cover the investment needed to embed LiveData with other cloud vendors while sales from Microsoft Azure build. The accompanying publication of FY19 results enables us to update forecasts. COVID-19 related delays to the Azure revenue ramp lead us to lower FY20 revenues from $28m to $20m; EBITDA losses widen from $5m to $11m. As our recent update note highlighted, WANdisco still expects to sign more than 50 new customers on this platform over the next 12 months. We will introduce FY21 forecasts as visibility on the growth trajectory emerges.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2016A 11.4 (7.5) (16.4) (46.9) N/A N/A
2017A 19.6 (0.6) (7.8) (19.4) N/A 418.3
2018E 17.0 (9.4) (16.3) (37.5) N/A N/A
2019E 16.2 (11.7) (18.4) (37.5) N/A N/A
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 02/07/2020
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (US$m) 6.7
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (24.4) 32.2 30.5
Relative* (24.6) 14.9 55.9
52-week high/low 820.0p/338.0p
*% relative to local index
Key management
David Richards CEO
Erik Miller CFO

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