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Record win with existing telecom customer

WANdisco 28 June 2022 Flash note
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Record win with existing telecom customer

Contract win

Software and comp services

28 June 2022



Market cap


Net cash ($m) at June 2022, pro forma including 15 June 2022 capital raise


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Business description

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.


Ken Mestemacher, CFA

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5700

WANdisco is a research client of Edison Investment Research Limited

WANdisco (WAND) announced its largest ever contract today, a commit-to-consume agreement valued at $11.6m with a top 10 global telecoms company. This contract is the third the customer has signed since its initial agreement in March 2022, and it has now entered into agreements worth a cumulative total of $14.3m. This progression of contracts displays the scalability of WAND’s commit-to-consume model. Furthermore, LiveData Migrator’s (LDM’s) ability to facilitate multi-cloud strategies (moving data from one cloud provider to another) is a key selling point, as customers want the flexibility to move data across multiple providers like Microsoft Azure, AWS and Google Cloud. As we discussed in our recent note, we look for WAND to continue building on this momentum in contract wins and our estimates for FY22 may be conservative. The H1 trading update will give us more visibility and we expect to revise our estimates at that stage. However, it does look like WANdisco’s product set and partnership are now aligned to address a very large market opportunity and a continuation of the deal flow momentum seen so far this year would also lay the platform for accelerated growth into 2023 and beyond.

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Note: *EBITDA and EBIT are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

The $11.6m commit-to-consume contract provides that 50% or c $5.8m will be paid in advance, and revenue will be recognised as data is ‘consumed’ or moved. Importantly, this is the third consecutive deal with this global telecoms company after its initial agreement for $1.5m and a follow-up order for $1.2m, both in March 2022.

According to management, the customer is one of the world’s largest suppliers of Internet of Things applications, and it will use WAND’s LDM and LDM for Azure to move smart meter data it collects from an on-premise Hadoop cluster to multiple cloud providers (Microsoft Azure and AWS). The applicability across multiple different cloud providers is a key selling point for WAND and highlights the relevance of its solutions for multi-cloud strategies as customers increasingly want the flexibility to move data among multiple providers, such as Microsoft Azure, AWS and Google Cloud, rather than being limited to only one.

Altogether, this customer has now signed contracts for $14.3m, and this progression of contracts displays the scalability of the commit-to-consume model. The initial $1.5m contract was to migrate 8pb of data, with the opportunity to extend the use case across other geographies and architectures. Subsequently, this $11.6m order was generated by the customer’s need to expand its geographic footprint for the smart meter data analytics project.

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