WANdisco (AIM: WAND)

Currency in GBP

Last close As at 06/02/2023

GBP13.34

20.00 (1.52%)

Market capitalisation

GBP883m

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.

The automotive sector is undergoing a significant transformation, driven by vehicle electrification and digitisation, and the disruptive influence of companies such as Tesla, which is developing increasingly service-oriented models. This is triggering a significant wave of investment as newer entrants grow and traditional players look to catch up. WANdisco looks to be extremely well placed to benefit from this. In this case, WANdisco is migrating a large amount of data to the cloud to enable the automotive manufacturer to implement internet of things strategies. The recurring opportunity for WANdisco is in enabling manufacturers to migrate the huge amounts of data generated from car sensor networks to the cloud on an ongoing basis.

Sector

TMT

Equity Analyst

Kenneth Mestemacher

Kenneth Mestemacher

Director, TMT

Key Management

  • David Richards

    CEO

  • Erik Miller

    CFO

Balance Sheet

Forecast net cash (US$m)

16.6

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 45.0 193.5 326.2
Relative 37.3 166.7 321.7
52 week high/low 1334.0p/222.5p

Financials

WANdisco’s (WAND’s) FY22 trading update confirms that both momentum and the pipeline remain exceptionally strong, with bookings of $127m (up by 967% y-o-y, Edison $116m) and revenues of at least $24m (+230% y-o-y, Edison $19.0m). We raise our FY23 bookings and revenue estimates by 8.3% and 7.1% respectively. The fact that WAND’s pipeline remains at record levels, even after the conversion of recent deals, indicates that deal flow momentum is likely to sustain the risk to estimates on the upside.

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2020A 10.5 (22.2) (30.4) (57.3) N/A N/A
2021A 7.3 (29.5) (34.7) (57.9) N/A N/A
2022E 24.0 (13.7) (19.2) (28.6) N/A N/A
2023E 30.0 (10.3) (15.8) (21.3) N/A N/A

Thematics

Digital Marketing and Internet Media Technology Platform

TMT

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Consumer

IPO apocalypse

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