COMPANY DESCRIPTION: Datable Technology Corporation is a Canadian-based software development and technology company operating in the consumer online advertising and marketing sectors. Datable offers a software as a service ("SaaS")-based Consumer Lifecycle and Data Management Platform called PLATFORM³ that enables consumer packaged goods ("CPG") companies and consumer brands to build and launch promotions, special offers, and loyalty programs on mobile phones, websites, and microsites. Datable focuses on the collection and data mining of first-party data, information collected directly from consumers, and allows companies to communicate & build relationships directly with the consumers. (1) INVESTMENT HIGHLIGHTS: (i) Strong Organic Revenue Growth Continues. Datable's revenue increased by 90% Y/Y in Q4/2021 and 79% Y/Y for 2021. Q1/2022 revenue increased by 28% Y/Y and the Company already has nearly $3.3 million in revenue under contract for 2022. (ii) SaaS Platform Focuses on Consumer First-party Data for Fortune 500 Companies. As governments update privacy laws and browser "cookies" are set to disappear, first-party data (opt-in) solutions become key for engaging with online consumers. Datable is currently working with 25 large CPG companies and 50 of the world's "top brands". In 2022, the Company expects to launch its consumer portal and data marketplace. (iii) Low Valuation Multiple Compared to SaaS Peers. Datable is currently trading at 1.1x our 2022E revenue estimate of $5.1 million and well below Canadian comparable companies. Datable's low revenue multiple highlights the potential for its share appreciation. (2) FINANCIAL ANALYSIS & VALUATION: (A) We estimate Datable's revenue as follows: (A) 2022E Revenue: $5.1 million; 2023E Revenue: $7.9 million. (B) Because of the current market conditions, we are now solely basing our Target Price on the Revenue Valuation as opposed to the equal-weighted price per share (Revenue Valuation and DCF) used in our previous report. (C) We estimate a price target of $0.14 based on a Revenue Multiple valuation of 5.0x and a One-Year Forward Revenue Estimate of $6.7 million. (D) We are decreasing our one-year price target to $0.14 from $0.30 but maintaining our Speculative Buy rating.
01 Jun 2022
Strong Revenue Growth in 2021 Continues into First Quarter
Sign up for free to access
Get access to the latest equity research in real-time from 12 commissioned providers.
Get access to the latest equity research in real-time from 12 commissioned providers.
Strong Revenue Growth in 2021 Continues into First Quarter
Datable Technology Corporation (DAC:TSX) | 0 0 0.0%
- Published:
01 Jun 2022 -
Author:
Chris Thompson -
Pages:
19
COMPANY DESCRIPTION: Datable Technology Corporation is a Canadian-based software development and technology company operating in the consumer online advertising and marketing sectors. Datable offers a software as a service ("SaaS")-based Consumer Lifecycle and Data Management Platform called PLATFORM³ that enables consumer packaged goods ("CPG") companies and consumer brands to build and launch promotions, special offers, and loyalty programs on mobile phones, websites, and microsites. Datable focuses on the collection and data mining of first-party data, information collected directly from consumers, and allows companies to communicate & build relationships directly with the consumers. (1) INVESTMENT HIGHLIGHTS: (i) Strong Organic Revenue Growth Continues. Datable's revenue increased by 90% Y/Y in Q4/2021 and 79% Y/Y for 2021. Q1/2022 revenue increased by 28% Y/Y and the Company already has nearly $3.3 million in revenue under contract for 2022. (ii) SaaS Platform Focuses on Consumer First-party Data for Fortune 500 Companies. As governments update privacy laws and browser "cookies" are set to disappear, first-party data (opt-in) solutions become key for engaging with online consumers. Datable is currently working with 25 large CPG companies and 50 of the world's "top brands". In 2022, the Company expects to launch its consumer portal and data marketplace. (iii) Low Valuation Multiple Compared to SaaS Peers. Datable is currently trading at 1.1x our 2022E revenue estimate of $5.1 million and well below Canadian comparable companies. Datable's low revenue multiple highlights the potential for its share appreciation. (2) FINANCIAL ANALYSIS & VALUATION: (A) We estimate Datable's revenue as follows: (A) 2022E Revenue: $5.1 million; 2023E Revenue: $7.9 million. (B) Because of the current market conditions, we are now solely basing our Target Price on the Revenue Valuation as opposed to the equal-weighted price per share (Revenue Valuation and DCF) used in our previous report. (C) We estimate a price target of $0.14 based on a Revenue Multiple valuation of 5.0x and a One-Year Forward Revenue Estimate of $6.7 million. (D) We are decreasing our one-year price target to $0.14 from $0.30 but maintaining our Speculative Buy rating.