Claranova reported Q122 revenue of €88m (-2% y-o-y), slightly better than its end-September expectation of a 5% decline. Now that the transition to subscription licensing is complete, Avanquest is seeing revenue growth accelerate. PlanetArt saw organic revenue declines in the last two quarters, but management is confident of a return to growth in Q222. We have revised our forecasts to reflect FY21 results and the Q1 revenue update.
Companies: Claranova SE
Claranova has announced that it expects to report a 5% y-o-y decline in group revenue in Q122 due to lower than expected volumes in its PlanetArt division. After elevated activity during lockdowns, the division is seeing moderating demand, not helped by new privacy rules introduced by Apple. We have revised our forecasts to reflect lower demand in PlanetArt in FY22; we expect more clarity on both customer demand and the marketing environment when Claranova reports Q122 revenues in November.
Claranova has raised new funds of €65m via an equity issue to two new institutional shareholders and a convertible bond and plans to use these to partially fund the buyout of the Avanquest minority shareholders. Taking full ownership of Avanquest simplifies the group’s corporate structure and gives management full control over the future of the division. As well as adjusting our forecasts to reflect these transactions, we have reduced our FY21 revenue and EBITDA forecasts to reflect Q421 perform
Claranova reported 31% y-o-y revenue growth for Q321, or 30% on an organic, constant currency (cc) basis. PlanetArt saw growth accelerate to 45% (42% organic, cc), helped by the successful integration of Personal Creations and subsequent launch of FreePrints Gifts in the US. Avanquest returned to growth having completed the transition to subscription licensing. We have revised our forecasts to reflect Q3 results, with a small upgrade to revenue and EBITDA in both years.
Claranova made good progress in H121, with organic constant currency revenue growth of 17% y-o-y and EBITDA growth of 106% y-o-y. Recent acquisitions made by PlanetArt are progressing well and the division is seeing growing demand in its target markets. Avanquest has completed most of the shift to subscription licensing, positively affecting margins. We have revised our forecasts to reflect stronger growth and profitability for PlanetArt.
Claranova generated 17% constant currency organic revenue growth in H121, despite COVID-19 related supply challenges. Demand remains high in PlanetArt, which reported 23% constant currency organic growth in H121. Management expects H121 group EBITDA to nearly double y-o-y and we have upgraded our FY21 profitability forecasts to reflect this.
Claranova has reported another strong quarter of revenue growth in Q121, with reported revenue up 29% y-o-y and organic, constant currency revenue up 23% y-o-y. PlanetArt was the driver of growth, with good performance from the original photo-printing business and the acquired personalised gifts business. We have increased our revenue forecasts to reflect Q1 performance but due to the high level of uncertainty caused by COVID-19, we maintain our EBITDA forecasts for FY21 and FY22.
Claranova reported strong organic revenue growth in FY20 while the EBITDA margin reflected the immediate strategic priorities of PlanetArt and Avanquest. The recent acquisition of CafePress is part of PlanetArt’s evolution to become a provider of personalised e-commerce and we have revised our forecasts to incorporate the deal. We note the group’s strong cash position which provides funding for future internal and external investment.
Claranova has bolstered its position in the personalised product market with the acquisition of CafePress for an undisclosed amount. The acquisition brings new product categories, a marketplace platform and licences from properties such as Marvel and Hasbro. We see scope for both cost and revenue synergies once integrated into the PlanetArt division; we will update our forecasts with FY20 results on 30 September.
COVID-19 lockdowns were a positive driver of demand for FreePrints photo printing services and also boosted demand for Avanquest’s proprietary software products. With FY20 revenues (€409m unaudited) coming in 7% ahead of our expectations, we have revised our FY20 forecasts resulting in a 47% upgrade to EBITDA and a 120% upgrade to our normalised EPS forecast. Our FY21 forecasts remain essentially unchanged. The company will report FY20 results on 30 September
Claranova reported 8% organic revenue growth for Q320, despite COVID-19 starting to affect the business from March. Demand has increased in the Printing business since lockdown and in May the Gifting facility in the US started production again. We have increased our FY20 revenue forecast by 3.5% to reflect these factors and increased our EBITDA forecast from €11m to €13m. Our FY21 forecasts are substantially unchanged.
Companies: Claridge Public Ltd (CLA:CYS)Claranova SE (CLA:PAR)
Claranova reported H120 revenue growth of 68%, of which 19% was organic. Higher than expected marketing spend combined with the first- time consolidation of the lower margin Personal Creations business reduced the growth in adjusted EBITDA to 3%. While Claranova has seen a limited impact on demand from COVID-19 disruption as most business is initiated online, we have taken a cautious stance for H220 due to the potential disruption in supply and production. We note that the company had a net cash
Claranova has issued an update clarifying that, to date, COVID-19 is not having a material effect on customer demand or its supply chain. The company is implementing measures to ensure that staff can work safely and highlights that it had cash totalling €90m at the end of CY19. The company will provide further detail when it reports H120 results on 31 March.
Claranova reported 19% underlying growth for H120, further boosted by a strong contribution from the recently acquired Personal Creations. The Mobile business continues its expansion across Europe, while the Internet business is focused on increasing the level of recurring revenues. We have revised our forecasts to reflect higher revenues offset by higher levels of investment in FY20 and FY21.
Claranova has reported another strong quarter of organic growth. In Q120 group revenues were 25% higher on an organic constant currency basis and 45% higher on a reported basis. The recently acquired Personal Creations was consolidated for the first time, contributing €8.5m to the Mobile division’s revenues. Based on the growth rates achieved in Q1, we maintain our forecasts.
Companies: Avanquest Software (AVQ:EPA)Claranova SE (CLA:PAR)
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Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
Companies: Cerillion Plc
Gresham has won an extension and expansion deal with a long-standing Tier 1 investment bank customer as it continues to standardise on the Clareti platform. Including this and other deals, current ARR rises to £23.3m, a 5% organic uplift from end June. Clareti/Electra are trading in line, though Gresham flags potential for further new business in FY21 and an “encouraging pipeline” for FY22. Non-Clareti revenues are performing ahead of expectations leading us to upgrade FY21 revenues and adj. EBI
Companies: Gresham Technologies plc
Adjusted EBITDA growth of +19% YoY in H1A reflects both higher margins and higher quality revenues. The Group now has 50%+ visibility over H2E revenues. This year will be second half weighted too but returning momentum post COVID-19 means the business is now in a much stronger position. Fair value lies in excess of twice the current price. Buy.
Companies: Shearwater Group plc
GB Group (GBG) has announced a conditional agreement to acquire Acuant, a leading player in the US identity verification market. At an enterprise value of £547m, it marks GBG’s largest acquisition to date. The deal strengthens GBG’s position in the US, broadens its product offering and accelerates its technology roadmap. We have revised our forecasts to reflect the placing and the acquisition and our normalised EPS forecasts decline 3% in FY22, are flat in FY23 and increase 3% in FY24.
Companies: GB Group PLC
tinyBuild announced the acquisition of Versus Evil, a publisher based in the US, and Red Cerberus, its development services subsidiary in Brazil. We estimate tinyBuild is paying only 5.4x 2022 EBITDA, based on upfront payment only and estimates that do not lead to earnout payments. We raise our 2022 EPS estimate by 10% (see overleaf). The acquisition provides tinyBuild with access to talent and IP in Latin America as well as in-house Quality Assurance, testing and localisation capabilities.
Companies: tinyBuild Inc.
Intercede has reported interims confirming performance in line with unchanged expectations. 9% revenue growth at constant currency (2% reported), as reported at the October trading update, remains on track with our 10% constant currency (5% reported) forecasts. EBITDA of £0.4m, compared with £0.6m EBITDA in 1H21, reflects the impact of pay rises, with the benefit of reduced interest charges post the CLN conversion doubling adjusted PBT from £0.1m to £0.2m. The five Cs (colleagues, customers, ch
Companies: Intercede Group plc
Arcontech has announced that its trading performance is below current market expectations due to one customer reducing its market data spend with the company, and notification from another customer that it will not be renewing its contract from the start of H2 22. The two changes are unrelated and do not involve customers with Arcontech’s core MVCS server-side solution. They instead reflect one customer greatly scaling back its market data team and market data requirements, and a second choosing
Companies: Arcontech Group PLC
Arrow Exploration Corp. (AIM:AXL; TSXV:AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has joined AIM, alongside a fundraise of approximately £8.8m.
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ATOM headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas com
Companies: SPA ECR KP2 SAR SYM
Finals to June 2021 are in line with the July TU, detailing the very strong performance which had led to upgraded expectations (+5% EBITDA, +7% adj PBT & adj dil EPS), and which are politely exceeded, with EBITDA ahead a further 3% and adj dil EPS +5%. Reinforcement of the strong balance sheet led to £32m y/e cash (no debt) after £8.8m free cash flow. The three strategic pillars each contributed, delivering increased ARPC +16%, from larger numbers of customers, 22% international revenue growth,
Companies: dotDigital Group plc
MCB acquisition announced: Snap reaction
Companies: Glantus Holdings PLC
Intuit continued with its exceptional run and had a robust fourth quarter capping off an exceptional year. Their full-year revenue increased by a staggering 25%, including the addition of Credit Karma with the fourth quarter alone contributing $2.6 billion to the top-line. The biggest drivers of the top-line growth are the Consumer Group segment which grew by 16% and the Self-Employed Group which grew by around 14%. These have wonderfully complemented the company’s core QuickBooks Online offerin
Companies: INTUIT (INTU:NYSE)Intuit Inc. (INTU:NAS)
Autodesk delivered yet another outstanding second-quarter results with a subscription revenue growth of 21%. Its AutoCAD and AutoCAD LT revenues increased by an impressive 12% whereas its AEC revenue increased by 21%, and manufacturing revenue increased by 12%. However, there was a selloff in the stock after its earnings given the management’s decision to tweak its billing strategy for its large enterprise clients. Earlier, companies would pay Autodesk upfront for three-year subscriptions and ge
Companies: AUTODESK (ADSK:NYSE)Autodesk, Inc. (ADSK:NAS)