Big Technologies (BIG LN) - Path to growth

In 2023, the company delivered strong 13% organic constant currency revenue growth and Adjusted EBITDA in line with expectations, even after including one-off inventory provisions.

Zeus: Software and Services Quarterly review - February 2024

Top subsector price performance: There were price gains across the board this quarter with all but Location & Sensing software posting positive aggregate movements

Big Technologies (BIG LN) - Trading update: Colombia contract and US investment

Big Technologies expects to deliver 2023 results in line with expectations. However, the company expects its Colombia contract to end in H1 2024. The impact of this contract loss is expected to be partly offset by a number of recent contract wins. In addition, Big Technologies has begun to invest in the high potential US market, which will reduce profits in 2024 but accelerate sales over the medium term. Overall, we lower 2024 revenue by 17% from £61.7m to £51.0m and lower Adj EBITDA by 22% from

Zeus: Software and Services Sector Quarterly review - November 2023

Top subsector price performance: Three of the nine subsectors recorded aggregate share price gains over the last quarter, with Security up the highest at +10.7% for the three months to 13 November 2023. Corero and Intercede are gaining contract momentum, partly driven by high-profile attacks. Similarly, GB Group’s Fraud location revenue grew strongly in H1, whilst NCC Group’s restructuring is achieving cost efficiencies. Bytes, which has broad exposure to the technology sector, highlighted parti

Big Technologies (BIG LN) - H1 23: Robust growth ahead

Big Technologies’ interims showed 19% revenue growth, robust adjusted EBITDA margins (59%), and strong cash conversion (77% adj. EBITDA to CFO). The Group continued to expand internationally and grew revenue from existing customers. We expect FX to be a headwind for the full year, so trim FY23 revenue estimates by 3% to £54.5m but leave adjusted EBITDA unchanged at £32.8m. We continue to think there is significant upside potential from new contract wins, not included in our forecasts, that could

Software and Services - Sector Quarterly review - August 2023

The UK small cap technology index, defined here as the AIM All-Share Technology Index, peaked in the middle of 2021 along with the broader UK technology index, defined as the FTSE All-Share Technology Index

Big Technologies (BIG LN) - AGM Statement: On track

Trading across the first four months of the year has been in line with expectations and the company remains confident in delivery results in line with market expectations

Software and Services Sector Quarterly review - May 2023

Deep Dive - Market reactions to SaaS transitions Our Deep Dive analysis indicates that the UK market is cautious on companies transitioning to SaaS business models. Investors have punished share prices of companies reporting declines in revenue growth and margins even though the declines are temporary and explained by the transition to SaaS. However, after the completion of SaaS transitions, companies are typically rewarded with high multiples for high recurring revenues and margins.

Big Technologies (BIG LN) - 2022 results: Go Big!

Big Technologies grew revenue 30% organically and in constant currency, largely driven by the New Zealand contract and existing customers deploying more devices. The company increased both gross and Adjusted EBITDA margins since strong scale efficiencies and operating leverage more than offset cost inflation and investments in capacity and new products. The company is well positioned for further large contract wins. However, our 2023 revenue estimates assume minimal net new contract wins, being

Hybridan Small Cap Feast - 20 Jan 23

20 January 2023 @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 object

Big Technologies (BIG LN) - Another upgrade

BIG has provided a pre close trading update for 2022. The company expects to deliver Adj EBITDA over 5% ahead of our forecasts. The company continued to gain momentum in the second half. 2022 revenue grew 33% and the Adj. EBITDA margin expanded to over 60%. We upgrade our 2022 estimates but leave our 2023 and 2024 forecasts unchanged, leaving room for significant outperformance.

Zeus Technology Quarterly review - November 2022

This quarter’s key observations • Subsector performance: UK Software was the only saving grace in the technology sector during the three months to 10 November, with an aggregate share price movement of +8.1% vs. an average of -12.0% for the other five subsectors. This was largely driven by strong performances from Microfocus International (+70%, following an announced $6bn takeover by Canadian software provider OpenText) and WANdisco (+52%, after strong interim results in September and a po

Audioboom Group - Q1 24 revenue growth of +11%, FY24E forecasts reiterated

Audioboom’s FY23 results and Q1 trading update show Q1 24 revenue growth of +11% yoy, $6.7m of March 2024 revenue marking the platform’s highest revenue month since May 2022, and a confident outlook that leads us to reiterate our FY24E forecasts. Following the focus on new initiatives through FY23, the platform is now in its strongest ever operational position, with a record 1.1bn monthly ad impressions created in March 2024, record global audience reach of 38.6m unique global listeners in Janua

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

Crimson Tide - FY23 reports +15% revenue; investment phase complete

Crimson Tide has reported FY23 results to December in line with expectations, with additional operating leverage benefitting updated FY24 and maiden FY25 and FY26 forecasts. FY23 delivered +15% revenue growth to £6.2m at 86% GM, of which over 90% is recurring, and maintained £5.8m ARR even after unexpected customer churn in the year as we previously noted. Crucially, the Group achieved milestone adj EBITDA profitability of £0.4m at 7% EBITDA margin, and edges closer to adj PBT profitability expe

Morning Note – 16 April 2024

Devolver Digital (DEVO LN) - Rebuild year

Devolver Digital encouragingly delivered 2023 results slightly ahead of expectations and provided a steady medium-term outlook that leads us to reiterate our 2024 Adjusted EBITDA estimates. Longer term, the company is now planning to further develop its two major planned titles, Human Fall Flat 2 and System Era's next major new release. We now expect those major titles to be released in 2026 rather than 2025, meaning we lower our 2025 Adjusted EBITDA forecast to $10.6m from $17.6m but introduce

Morning Note – 15 April 2024

Soft growth patch

Checkit - New product launch and contract wins

Checkit has won contracts with two customers worth at least £417k over the three-year lives of the contracts, confirming its ability to upsell to its existing customer base and supporting our forecasts. Having trialled the new technology with multiple customers, Checkit has launched its Asset Intelligence module, which uses advanced analytics and machine learning to enhance customer sustainability, reduce costs and increase revenue.

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).

Morning Note – 17 April 2024

Touchstar - Full year results: Recurring revenue strategy delivers further profit growth

Touchstar is a supplier of mobile data computing solutions and managed services to a variety of industrial sectors. This morning's full year results reflect the outcome of a multi-year strategy coming to fruition for the group, with recurring revenue growth of 8.7% delivering overall revenue growth of 7.1% and in turn a 60% increase in PBT to £0.7m. Over the past few years, Touchstar has focused on enhancing the returns from their product offering through a shift towards recurring software licen

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.

Engage XR Holdings - Expanding from FY23, FY24E forecasts reiterated

ENGAGE XR’s FY23 results show revenue and net cash in line with the February trading update, EBITDA ahead at -€4.0m vs -€4.5m due to the split of cash outflow between opex and working capital, and a confident outlook that leads us to reiterate our FY24E forecasts. FY23 revenue for the core ENGAGE platform was unchanged vs FY22 at €3.3m, as H2 23 revenue was impacted by the record seven-figure contract announced in February shifting to 2024, and several enterprise customers scaling back renewals

LIBERUM: Cirata plc: Cirata from the flames

Initial Equity Trading Comments - 19 February 2024