A new Bango: 77% ARR growth and 137% NRR

With the majority of the Docomo integration now complete and a record Digital Vending Machine (‘DVM’) pipeline (that is converting, with a 20%+ yoy increase in Q1’24 revenues), we believe a new Bango is emerging with a highly cash generative DCB business and a fast growing, newly reported DVM revenue line that should support high incremental revenue growth. While the January 2024 trading update was disappointing, if we look at Bango’s H2’23 vs H2’22 performance, total revenues increased 46% yoy

Hybridan Small Cap Feast - 18 Jan 24

18th January 2024 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: SGE, HBR, CURY, CPI, CAU, CUSN, ATYM, IHC, BGO & ANIC.

FY23 Trading Update

Bango has reported an impressive 62% yoy growth in FY23 revenues to $46.1m, but this is 6% below our forecasts. Profits were a tale of two halves with -$0.2m adj EBITDA in H1’23 reversing to $5.2-6.2m in H2’23, however, a number of timing factors (detailed below) has resulted in a 56% miss vs our previous estimate with FY23 adj EBITDA expected to be c.$5-6m. Group ARR increased 76% yoy and DVM continues to win new customers, but this is likely to be lost this morning with the focus on the H2 per

Hybridan Small Cap Feast 18/09/2023

Dish of the day Joiners: No joiners today. Leavers: Egdon Resources has left AIM. What’s cooking in the IPO kitchen?** Announced ITF 12 July: Substrate Artificial Intelligence, an artificial intelligence company based in Spain that creates, buys and scales companies around AI in diverse sectors such as fintech, agritech, energy, human resources, and health, intends to join the Access Segment of the AQSE Growth Market. Admission delayed. Announced ITF 6 July: Blackpoint Biotech plc, a medical can

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: MNDI, PHNX, GRP, DEC, HICL, PSG, TRR, & BGO.

Success in US market delivers strong H1

Bango has reported strong H1’23 results with 88% revenue growth (we estimate c.25%+ organic), ARR increasing 63% yoy, and a further $8m of annualised cost savings executed with Bango on track to deliver a transformational H2 profit performance. Bango’s Digital Vending Machine (‘DVM’) secured 2 new US wins, including 1 of the top 5 US operators (now working with 3 of the 5), providing access to 200m+ US consumers. Given these operators are currently on the bottom tier of license revenue (we estim

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: SPI, GFTU, TRN, IGG, HTWS, SONG, BGO, BRK, GHE, & THG.

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: INF, AAL, BARC, BEZ, BT., CNA, FRAS, RS1, SDR, SHEL, STJ, DRX, INCH, ITH, ITV, JUP, MAB, BGO, & DELT.

H1 in-line; DVM growth strong

Bango remains on track to deliver FY’23e revenue growth of ~70% y/y (organic: ~+25%), and to meet FY ARR guidance of $10m. Exit-ARR grew +64% y/y to $5.6m prior to inclusion of two new US telcos (inc one tier-1) signed but not yet live, and other opportunities in the pipeline. Group revenue grew +88% y/y inclusive of Docomo (~+15%-20% organic). Whilst optically H1 adj EBITDA of neg$0.4m creates a demanding H2 weighting (SCMe H2e: $13.0m), we note the strong progress on Docomo synergies ($19m of

Hot Off The Wires - The Day Ahead

Today's news and views, plus announcements from: GSK, TW., TEP, BGO, AXS, IHC, WISE & IPO of CAB Payments Holdings.

New loan agreement, changes to forecasts

Bango has announced that it has entered into a new unsecured 3 year loan agreement with NHN Corporation for c.$8m (c.10.4bn Korean Won), to provide additional liquidity and accelerate growth within DVM. This new loan further strengthens the balance sheet and will enable Bango to: (i) realise additional synergies thus producing greater EBITDA in FY24 and beyond, (ii) assist in closing further multi-year SaaS contract wins for DVM given the business is targeting and winning larger, longer contract

Alphawave Semi: FY23 trading update, amended forward guidance

Alphawave Semi has reduced guidance for FY23 and prospectively citing lower revenues from China, changes in expected revenue recognition from long-term contracts, and continuing investment in R&D. The share price has reacted negatively, giving up most of the gains since the trading statement at the end of January. Current consensus, which is a good match for pre-existing guidance, should be reduced, most likely following release of the FY23 results and full 1Q24 trading update due on 23 April. H

It’s not what you sell, it’s the way that you sell it

This report is intended to help UK small- and mid-cap investors gain a better understanding of software companies’ routes to market, and to highlight how one of the most important facets of the way in which they grow and deliver value is routinely ignored.  We examine sales processes for six UK-listed companies and one that has recently been taken over, and consider why they have followed their respective paths.

Initial Equity Trading Comments - 1 December 2023

HY results - strong growth continues

Eleco - FY23E EBITDA +3% ahead, FY24-26E EBITDA & EFCF reiterated

Eleco’s FY23 trading update highlights record recurring revenue growth of +22% to £20.7m, strong profitability that leads us to expect FY23E adjusted EBITDA +3% ahead of our previous forecast, and a confident outlook that leads us to reiterate our FY24-26E EBITDA and EFCF. Across the group, excellent execution of the SaaS transition has driven recurring revenue to 74% of group revenue from 64% in FY22, and ARR is +24% yoy to £22.6m (£19.7m at H1), including c£2m of ARR from the successful acquis

LIBERUM: Cirata plc: Cirata from the flames

Zeus Top Picks for 2024 - 2023 review and outlook for 2024

On 9 January last year, we set out our ten top stock picks for 2023, for what turned out to be another relatively poor twelve months for UK equities due to two wars, stubbornly high inflation and further tightening of monetary policy. This was even as other major markets, such as the US, largely recovered in the year. In the 2023 calendar year, the AIM All-Share index fell 8.2% and is still 42% off its 2021 high. From the release of our 2023 top picks note, the average total return (assuming div

Synectics + (SNX, House Stock at 185p) - Strong FY23A profit growth to continue

Record revenue and profitability, FY24 on track

Maintel - Strong FY23 year-end TU continues trend of over-delivery

Maintel has reported a trading update for the year ending December 2023, indicating revenue in of at least £101m and adj EBITDA of “in excess of £9m”, compared with respective forecasts of £98m and £8.6m. Net debt of £18.1m also outperforms our expected year-end net debt of £18.6m. The group is continuing the trend established with the reintroduction of forecasts in April 2023, where growing confidence in delivery led to upgraded forecasts in both August and September, and still achieving outper

Morning Note – 4 April 2024

Auction Technology Group - H1/24 Trading update

ATG’s H1/24 trading statement indicates revenue for the six-month period to 31 March 2024 was $86m, a 6% increase on H1/23 (1% organic growth), helped by the addition of the EstateSales.Net (ESN) marketplace last year, which performed well in the period. Total marketplace revenue increased 2% (organic), driven by growth in value-added services (VAS) and event fees, offsetting a decline in commission revenue (mainly through lower asset prices).

Intelligent Ultrasound Group - GE Healthcare launches new Voluson Signature with

GE Healthcare has announced the launch of the Voluson Signature 20 and 18 ultrasound systems, with the related press release noting these systems ‘comprehensively integrate artificial intelligence’ to improve the ultrasound procedure for clinicians and the women being scanned. These ultrasound systems include SonoLyst, the AI which incorporates Intelligent Ultrasound’s ScanNav Assist and ScanNav AutoCapture AI software. The launch of additional Voluson systems including the SonoLyst suite of AI