Workday, Inc.: Major Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (03/23)

Workday produced strong Q4 results and delivered an all-around beat with a decent performance in key operating measures and a 22% increase in subscription revenue for the quarter and the entire fiscal year. They also exceeded the 10,000 client barrier in Q4, reaching a key milestone that demonstrates the strength of the Workday platform and its capacity to serve the needs of the CHRO and CFO offices. On the HR front, the combination of their AI and ML-powered Workday Skills Cloud and Workday Tal

Workday Inc: Cloud Transition Collaboration With KPMG & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (12/22)

Workday delivered another solid quarter and managed an all around beat. The company’s APA won over a number of clients, including Trip.com, Fletcher Building, Bank of Queensland, and a pharmaceutical company. They successfully added about 600 net new employees, concluding Q3 with a global workforce of more than 17,500. As they enter Q4, the management anticipates a significant decrease in hiring. However, they will still add essential people across the business's strategic growth areas, includin

Workday Inc: Growing Customer Base, Retention & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (09/22)

Workday delivered another all-around beat, outperforming market expectations with respect to its operating indicators, highlighting the ongoing significance of digital transformation for finance and HR. In Q2, they had another strong quarter for Workday HCM, where the cloud migration is continuing with noteworthy client additions, including Electrolux, First Student, Groupe Adeo, Korean Air, and Raymond James. Along with the significant expansion of their core HCM and financial apps, Q2 saw rema

Workday Inc.: Market Penetration, Switching Costs & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (06/22)

Workday reported a strictly mediocre set of results for the first quarter of the fiscal and delivered an earnings miss. The company has seen continued momentum in both its net new and customer-based teams and very strong renewals which is why its revenues managed to meet Wall Street expectations. Their subscription revenue increased by 23% but given the significant delays, the company’s backlog performance was negatively impacted. More broadly, the management sees a healthy overall pipeline, put

Workday Inc.: Financial & Price Forecasts, DCF Valuation, ESG & Other Risks (03/22)

Workday managed to achieve its fastest year-over-year growth in new ACV bookings in over five years in 2021. The company’s business acceleration in the past year demonstrates that the management is well on track to reach its long-term revenue goal of $10 billion and beyond. The management also continues to see high attach rates for spend management solutions among their financial customers, indicating that health insurers are increasingly collaborating with procurement peers to increase visibili

Workday Inc. - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 1/22

Workday delivered a strong result, driven by a healthy demand for its Human Capital Management (HCM) solutions. They also aim to increase their addressable market with a broader product portfolio and different go-to-market levers to generate long-term growth on their way to $10 billion and beyond. Among several new HCM clients in the third quarter, the company onboarded ConocoPhillips, Asda Stores Limited, Toll Brothers, Northern Trust, and Vishay Electronic. Apart from substantial growth in cor

Workday Inc. - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 9/21

Workday delivered a robust second quarter result and went on to achieve the target price from our last report. The company’s performance was driven by outstanding execution against a rapidly improving market backdrop as organizations accelerate the pace of digital transformation across finance and HR. In Q2, the company’s subscription revenue was $1.11 billion, up 20% year-over-year, driven by favorable in-quarter linearity, robust new business sales, and an over performance on customer renewals

Workday Invt Thesis, Financial & Price Forecasts, DCF Valuation

Workday is a renowned provider enterprise cloud applications for finance and human resources. The company has been on track for a strong growth across most of its offerings as a result of a wide variety of Covid-induced tailwinds, particularly the accelerated digital transformation of enterprises taking place across all industries. The management has witnessed a robust uptake of many of its offerings such as Workday Adaptive Planning, Workday Prism Analytics, Workday Strategic Sourcing, Spend Ma

Morning Note – 30 August 2024

Alphawave Semi | 2Q24 trading update - bookings +27% YoY

Alphawave announced a third consecutive quarter of bookings over US$100m with bookings for 2Q24 of US$107m, up 27% YoY. The company also had a record quarter for design wins with 14 in total from new and existing customers, several of which were for hyperscalers and leading semiconductor companies. Wins included not just those for the company's advanced connectivity products but also for its new ARM-based compute chiplet solutions, as the company broadens out its product offering. Evidence conti

Morning Note – 19 August 2024

- Rare opportunity in e-learning technologies

Through a buy and build strategy, Learning Technologies Group (LTG) has established a distinctive international position in corporate e-learning with a broad range of software and service offerings. LTG has been growing apace and profit margins have been rising strongly. The recent acquisition of LMS provider NetDimensions is the last major piece in the technological jigsaw. Attractive growth drivers and synergies from the NetDimensions acquisition put the company in a strong position to generat

Hybridan Small Cap Feast 16/12/2021

Joiners DSW Capital plc (DSW.L) a profitable, fast growing, mid-market, challenger professional services network joins AIM. DSW operates a licencing model and licences the DSW and associated brand names in return for a royalty based on a percentage of fee income. Public Policy Holding Company (PPHC.L) leading bi-partisan, full-service US government affairs business joins AIM. Through its wholly-owned companies, PPHC operates a portfolio of independent firms that offer public affairs, crisis mana

Hybridan Small Cap Feast - 21 Feb 23

21 February 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 objec

Hybridan Small Cap Feast - 28 Apr 23

28th April 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

Alphawave Semi: Initiation - accelerating to the speed of light

Alphawave Semi supplies cutting edge connectivity solutions for the world's most demanding applications in digital infrastructure. Over the last two years the business has been transformed and it now licences its Intellectual Property (IP), supplies custom silicon and, from 2024, should supply optical connectivity silicon. The company generated revenue of US$185m in 2022 and is targeting growth to cUS$500m by 2025 with a consensus forecast of 102% pa growth in pre-tax profit over the period. Whi

Alphawave Semi | CMD - Reasons to be cheerful

Alphawave's shares have recovered almost half of the losses experienced when forward guidance to 2025 was reduced in April. Following what was a difficult set of FY23 results, the company's recent Capital Market's Day (CMD) set out a powerful case for a continuation of the recovery in the share price, amplifying the group's potential to ride the magic carpet of hyperscaler driven demand for its connectivity Intellectual Property (IP) and its products. Not only were estimates for total addressabl

Alphawave Semi | First chiplet leveraging Arm Neoverse launched

At its recent Capital Market's Day (CMD - see our note from 5th June), Alphawave announced itself as the first company to deliver chiplets leveraging Arm's Neoverse computing technology offering scalable, interchangeable and customisable solutions to its customers. Alphawave has now formally launched this advanced chiplet built on Arm Neoverse Compute Subsystems which is targeted at artificial intelligence/machine learning, high-performance compute, data centre, and 5G/6G networking infrastructu

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

Devolver Digital (DEVO LN) - Placement at premium and strategic interests

Devolver has attracted strategic interest and raised $10m at a 10% share price premium. We believe this transaction, combined with peers’ strong trading updates and positive market data, could indicate the early stages of sector recovery and undervaluation. Devolver’s shares trade at only 11x ex-cash PE and 9x EV/ Adjusted EBIT for 2026

NCC Group (NCC LN) - Expect further outperformance

FY24 Adjusted EBITDA was slightly ahead of consensus estimates, while revenue and net cash were in line. We leave our above consensus FY25 and FY26 estimates unchanged and see room for outperformance. We believe Cyber Security market growth and the trend towards managed services remains strong, while the Technical Assurance Services (TAS) unit’s drag on group growth should reduce significantly in FY25. We continue to see multiple opportunities for improvement remaining in the company’s turnaroun

PROGRESSIVE: Beeks Financial Cloud Group: Contract extension at JSE – ‘Please, sir, I want some more’

Beeks inks a multi-year contract extension at the Johannesburg Stock Exchange. The contract was first signed in September 2023, with the first extension in March 2024; the momentum reflects stronger-than-expected customer demand from JSE clients – this is a profit centre for JSE. The service is available at the JSE's Teraco data centre, addressing additional regulatory requirements for dual location disaster recovery (customer upselling). The value was not disclosed; guidance is that the contrac

GetBusy - Strong progress through FY23, FY24E forecasts reiterated

GetBusy’s FY23 results show organic revenue growth of +10% to £21.1m, FY23 adjusted EBITDA +£0.1m ahead of our +£0.3m upgrade at the January trading update, and a promising outlook that leads us to reiterate our FY24E forecasts. At constant currency, ARR grew +10% yoy to £20.5m, recurring revenue grew +12% to £20.3m, and net revenue retention of 100.0% per month reflects upselling and price increases, with gross monthly churn of 0.8% per month vs 0.9% in FY22. Within SmartVault, the July 2023 la