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Atea reported Q3 results slightly below our estimates, but with a DPS at NOK 5 and a new dividend policy. Revenues declined by 2% y-y FX-adjusted and we expect headwinds on hardware to persist, offsetting solid software growth. While Atea is trading at a discount to peers but in-line with its historical figures on EV/EBIT NTM, we need to see revenue improvements as well as cost efficiencies before we find it attractive. As such, we maintain our Hold rating.
Companies: Atea ASA
Arctic Securities
Q3 results -3% below on consensus revenues but 11% ahead on EBIT Software (+16% y-y) was strong – positive read across to Crayon We will make minor estimate changes, consensus EBITDA may increase
Dustin’s Q4 results (announced today) shows slight decline in LPC ..stating stable demand in public, but delayed for large corporates The results supports our estimates for Atea
Dustin’s Q4 results (just announced) shows slight decline in LPC ..stating stable demand in public, but delayed for large corporates The results supports our estimates for Atea
Atea’s Q2 results were already pre-announced and driven by solid results in Norway, while Sweden was broadly in-line and Denmark was slightly weaker than expected. Denmark remains the largest swing factor to estimates, but its EBIT improvement was solely due to cost reductions. Software growth was stronger than expected, and is a positive read-across to software peers such as Crayon. We reiterate our Hold rating and lift our TP to NOK 109 (105).
Q2 results were already preannounced in the recent profit upgrade Sweden, Norway and Baltics ahead; but Denmark weaker than estimated Software was especially strong (+21% y-y) – positive read-across to Crayon We expect to make minor estimate changes
Atea announced a profit upgrade yesterday, following solid results from Dustin from the public sector. Though this signals underlying improvements, some of this is likely due to temporary positive effects from Covid-19. The results is also a positive read-across to Nordic IT companies including Crayon. We maintain our Hold rating until we get more colour in the Q2 report on the underlying improvement – in such a scenario Atea’s discount to peers should narrow.
Dustin just reported its results; with LCP (large corporates) up 7% y-y Dustin’s LCP segment was driven by strong sales to the public sector …offsetting soft development in the SMB segment and for large corporates Supports our est. for Atea, expecting strong public sales(60% of revenues)
Atea reports Q2 results on July 15. We expect a temporary positive effect from higher hardware sales (remote working products) and extended payment terms in Q2 and part of Q3. Still, the underlying trends in hardware is soft with potential risk on delivery issues from certain hardware vendors. As such, we maintain our Hold rating as we view several other TMT shares as more attractive, including pure-play software companies with a higher cloud exposure.
Public sector agreement in Sweden today already reflected in estimates Expect near-term improvements in revenues in software and hardware Solid software growth in the Nordics (ref Crayon’s Nordic results) Temporary stronger hardware sales (remote working products) in Q2
Atea’s Q1 results were weaker than expected, due to soft results in Denmark and Sweden in especially hardware. While this has improved into Q2, with a stronger backlog y-y, we consider this improvement as temporary. As such, we maintain our Hold rating, and consider the discount to peers – with some seeing a multiple expansion recently - as fair until further data points on underlying improvements. We view several other TMT shares as more attractive.
Q1 results below estimates due to weaker results in Denmark and Sweden Slow start of Q4 for product revenues but improved through the quarter Revenues “accelerated into Q2”, cost cuts initiated in Denmark Expect to cut our estimates, depending on details on Q2 improvements
Atea reports Q1 results on April 22. While the initial start to Q1 was soft, we model improved revenues through the quarter from increased hardware sales since COVID-19. This, and positive FX effects on reported figures, should be enough to offset weakness in project related services. While recent comments from Dustin and Atea’s CEO could indicate a solid Q1 report, the estimate risk remains large – also considering the decision to withdraw its dividend payment.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Atea ASA. We currently have 16 research reports from 2 professional analysts.
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
Companies: Alphawave IP Group PLC
Capital Access Group
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
Companies: Audioboom Group PLC
Cavendish
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
Companies: Crimson Tide Plc
Companies: BILN ELCO NXQ CUSN ATG
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
Companies: Devolver Digital, Inc.
Zeus Capital
Companies: 88E RNO TRIN KRM EXR BOOM
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.
Companies: Checkit plc
Edison
Companies: Kainos Group PLC
Canaccord Genuity
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).
Companies: Auction Technology Group PLC
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
Companies: Intelligent Ultrasound Group Plc
Companies: Crimson Tide Plc (TIDE:LON)Plant Health Care PLC (PHC:LON)
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
Companies: Touchstar plc
WHIreland
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.
Companies: Idox plc
Progressive Equity Research
Companies: Cirata Plc
Liberum
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
Companies: Engage XR Holdings PLC
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