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Research: TMT
The launch of 1Data Gateway is an important development for 1Spatial in our view. It enables 1Integrate (its key differentiator) to be delivered as a hosted software-as-a-service (SaaS) platform. This should significantly enhance its scalability, allowing adoption across a range of segments at little incremental cost. Hence, we see 1Data Gateway as key to driving growth and raising margins over time.
Written by
1Spatial |
Launch of 1Data Gateway |
Product launch |
Technology |
6 March 2020 |
Share price performance
Business description
Analysts
1Spatial is a research client of Edison Investment Research Limited |
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The launch of 1Data Gateway is an important development for 1Spatial in our view. It enables 1Integrate (its key differentiator) to be delivered as a hosted software-as-a-service (SaaS) platform. This should significantly enhance its scalability, allowing adoption across a range of segments at little incremental cost. Hence, we see 1Data Gateway as key to driving growth and raising margins over time.
Year end |
Revenue (£m) |
EBITDA* |
PBT* |
EPS* |
EV/Sales |
EV/EBITA |
P/E |
01/18 |
16.9 |
0.4 |
(1.5) |
(2.3) |
1.4 |
57.3 |
N/A |
01/19 |
17.6 |
1.2 |
(0.9) |
(1.1) |
1.3 |
19.4 |
N/A |
01/20e |
22.8 |
3.1 |
0.8 |
0.7 |
1.0 |
7.4 |
35.5 |
01/21e |
25.6 |
3.7 |
1.4 |
1.0 |
0.9 |
6.2 |
25.9 |
Note: *EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
1Integrate uses a customisable rules engine to help generate actionable insight from geospatial data stored across multiple repositories in an organisation. Historically it has always been delivered as a customised, on premise solution, making it relatively complex and time consuming to implement. 1Data Gateway changes this. It enables 1Integrate to be accessed as a configurable hosted SaaS solution. At its October analyst day, 1Spatial demonstrated several potential commercial applications across different sectors and geographies (see Mapping a future path). In addition, the company has updated the core software to enable support for BigQuery, Google’s cloud data warehouse.
It may take time for the full financial benefits of 1DataGateway to be felt. Nevertheless, we believe the ability to address multiple clients without substantial cost increases gives it the potential to both accelerate growth and raise margins. Furthermore, it represents an important step towards delivering 1Spatial’s Location Master Data Management (LMDM) strategy. The company issued an update statement in January (see Edison note) suggesting momentum in the business had remained healthy into the last few months of the financial year. Our forecasts are unchanged and we expect a further trading statement at some point in the next month.
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Disclaimer
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Disclaimer
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Research: Healthcare
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