Company profile - Wandisco feature image - 28062019 - JPG



£309.8m market cap

590p 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

Proceeds from WANdisco’s recent placing will cover the investment needed to embed LiveData with other cloud vendors while sales from Microsoft Azure build. The accompanying publication of FY19 results enabled 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. WANdisco still expects to sign more than 50 new customers on this platform over the next 12 months and we will introduce FY21 forecasts as visibility on the growth trajectory emerges.

Y/E Dec
Revenue (US$m)
PBT (US$m)
EPS (fd) (c)
P/E (x)
P/CF (x)
2018A 17.0 (9.4) (16.3) (37.5) N/A N/A
2019A 16.2 (11.7) (18.4) (37.5) N/A N/A
2020E 20.0 (10.6) (17.6) (35.3) N/A 27.2
2021E N/A N/A N/A N/A N/A N/A
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 updated analysis suggests that the Microsoft relationship alone could generate more than $80m in annual revenues by 2023 and highlighted that the data migration element alone could present a $1.4bn opportunity in total.

Last updated on 11/08/2020
Share price graph
Balance sheet
Forecast net cash (US$m) 25.8
Forecast gearing ratio (%) N/A
Price performance
Actual (2.0) 9.3 13.5
Relative* (3.6) 4.1 31.0
52-week high/low 820.0p/338.0p
*% relative to local index
Key management
David Richards CEO
Erik Miller CFO

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