finnCap Research Company Notes - 11 December 2019
Dec 11, 2019 / News
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Sector: Technology & Telecoms
Amino Technologies (AMO) : Corp
24i announces another successful contract
Key data
Share price (p) 106.0
Target price (p) 215.0
Market cap (£m) 80.6
Enterprise value (£m) 79.5
Following the very positive Youfone announcement accompanying the trading update on Monday, Amino has announced another contract between 24i and BroadwayHD, a US video streaming service. Under the contract (now live), 24i has launched a suite of applications and Subscription Video-On-Demand services to enhance the video streaming platform, delivering an enriched and personalised end-user experience. 24i has produced a robust end-to-end OTT streaming video solution available across multiple devices and via a dedicated app (including iOS, Android, Apple TV, Amazon Firestick and Roku), driving subscriber engagement and accelerating growth for the client. This contract again highlights the complementary services that 24i offers, and we look forward to further newsflow as it continues to gain traction among OTT providers. Target price and forecasts reiterated.
Andrew Darley
020 7220 0547
adarley@finncap.com
Sector: Technology & Telecoms
Pelatro (PTRO) : Corp
Existing licence customer upgraded to services
Key data
Share price (p) 53.0
Target price (p) 125.0
Market cap (£m) 17.2
Enterprise value (£m) 15.9
It seems Pelatro has not closed the book on 2019 contracts. This is more good news following on from the major managed service deal announced last week with a global telco. This is another fixed monthly revenue cum gain share deal building the recurring revenue base. However, this time Pelatro has upgraded an existing mViva licence customer. The telco has been running its own campaigns for almost a year but has recognised it will make even greater gains and return on its investment if Pelatro itself uses the solution to devise and run campaigns. The upselling of services to previous licenced customers is yet another interesting new expansion opportunity. It is possible that the expansion of the services infrastructure necessary for last week’s big deal will enable a significant scale-up in this business for relatively little extra cost. There is no change to our forecasts but this is a very interesting development that helps build recurring revenue base and underpin expectations.
Lorne Daniel
020 7220 0545
ldaniel@finncap.com
Sector: Technology & Telecoms
Sopheon (SPE) : Corp
Trading update
Key data
Share price (p) 690.0
Target price (p) 1 200.0
Market cap (£m) 70.2
Enterprise value (£m) 55.6
FY19 contracted visibility has expanded to $28m (August: $25.4m). Seasonally busy Sept-to-Dec 4Q opened with a $30m pipeline of potential orders with FY19 close dates, almost half relating to SaaS multi-year deals. At mid-December, $9.9m of deals are potentially closing by year end, of which $2.7m relates to licence revenue recognisable in period. Several licence opportunities shifted into FY20, as the proportion of SaaS revenue also accelerates. Momentum remains strong, and the total forward pipeline for FY19/FY20 is 60% higher than at FY18, with one-third SaaS. In an ideal world we’d identify an FY19 revenue range of $29.0m to $31.0m, but settle cautiously on $30.0m even as future year percentage recurring revenue improves (c.50%). EBITDA moves to $6m in FY19; and FY20 moves to revenue of $36m, with EBITDA of $6m as a consequence of maintaining planned investment, reflecting undimmed management confidence for a global opportunity. Target price 1200p (1425p) as the recurring revenue stream provides growing visibility but from a lower base.
Andrew Darley
020 7220 0547
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