Currency in GBP
Last close As at 26/05/2023
GBP13.10
— 0.00 (0.00%)
Market capitalisation
GBP880m
Research: TMT
WANdisco’s strong run of customer wins continues with a $5m minimum value commit-to-consume agreement with a large automotive components supplier. With $18.1m of deals announced over the past week, evidence is building that WANdisco is now hitting an inflection point. We will review our estimates following the Q2 trading update (expected in the first half of July), but our FY22 looks increasingly conservative 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.
WANdisco |
Another multimillion-dollar IOT deal |
Contract win |
Software and comp services |
4 July 2022 |
Share price performance Business description
Analysts
WANdisco is a research client of Edison Investment Research Limited |
WANdisco’s strong run of customer wins continues with a $5m minimum value commit-to-consume agreement with a large automotive components supplier. With $18.1m of deals announced over the past week, evidence is building that WANdisco is now hitting an inflection point. We will review our estimates following the Q2 trading update (expected in the first half of July), but our FY22 looks increasingly conservative and a continuation of the deal flow momentum seen so far this year would also lay the platform for accelerated growth into 2023 and beyond.
Year end |
Revenue ($m) |
PBT* ($m) |
EBIT |
EPS |
EV/Sales |
EV/EBITDA (x) |
12/19 |
16.2 |
(11.7) |
(18.5) |
(38.8) |
12.9 |
N/A |
12/20 |
10.5 |
(22.2) |
(28.5) |
(57.3) |
19.8 |
N/A |
12/21 |
7.3 |
(29.5) |
(35.7) |
(57.9) |
28.5 |
N/A |
12/22e |
10.0 |
(24.7) |
(29.9) |
(50.1) |
20.8 |
N/A |
Note: *EBITDA and EBIT are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
This contract is for another Internet of Things (IOT) deployment and follows the $11.3m IOT deal with a major telco, announced in late June. In many ways IOT is a perfect use case for WANdisco, due to the huge amounts of data consistently being generated, which need to be moved to the cloud for analysis. In this case, LiveData Migrator is being deployed to support the movement of sensor data to the cloud within an Amazon Web Services environment, whereas the telco deployment was to a multi-cloud architecture.
As a commit-to-consume contract, revenues will be recognised over the five-year lifetime of the project, but 50% of the payment will be made up front. The client expects considerable data growth over the lifetime of the contract, representing a potentially large expansion opportunity for WANdisco.
Evidence continues to build that WANdisco is now hitting an inflection point, with a product set and partnership aligned to address a very large market opportunity. The company has announced $18.1m worth of deals over the past few weeks building on the $5.8m of bookings announced in Q1. We will review our estimates following the Q2 trading update, but our FY22 is looking increasingly conservative. 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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Research: TMT
Induction Healthcare is a growing UK-based healthcare software company, aiming to provide patients with more flexible care options beyond the traditional face-to-face consultation model. Early in FY22, management acquired Attend Anywhere, which was transformative for the business, leading to revenue growth of 8x and a move to adjusted EBITDA break-even. Our forecasts indicate further growth in revenue and profitability, which should be supported by its robust cash position.
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