Cloud computing and connectivity provider for financial markets, Beeks Financial Cloud Group (“Beeks”), has reported FY 20A results in line with our forecasts. In our view the impressive growth in revenue and EBITDA delivered demonstrates the group’s defensive qualities against the COVID19 environment. The group also made strong operational progress during the year: FY 20A saw the strategically important (organic) Tier-1 client base reach five, alongside material expansion of the platform and a key new product launch. Management commentary on the outlook is positive, and we maintain our FY 21E earnings estimates following the announcement.
FY 20A results in line with our forecasts: FY 20A Revenue of £9.36m (+27% YoY) and underlying EBITDA of £3.33m (+34%) were in line with our respective £9.33m and £3.13m forecasts. With 23% YoY growth in Annualised Committed Monthly Recurring Revenues (“ACMRR”) to £11.2m, revenue visibility remains high.
Continuing to deliver on the strategic priority: Beeks’ main strategic objective remains growth in the institutional customer base, particularly with Tier-1 clients, for public, private and secure Cloud deployments. In our view, the FY 20A results demonstrate that the group continues to deliver against this priority. Beeks signed two Tier-1 clients in the year, bringing the total number of (organic) Tier-1 clients to five.
An expanded platform…: The group opened seven new Datacentres during the year: Singapore SG1, London LD8 and LD4.2, Paris PA1, Sydney, Australia and NY2 and NY5 in New York. This brings the global network up to 18 Datacentres and has increased Beeks’ capacity by 45% over the past year. All of the new Datacentres are now revenue generating.
…and a broader product set: Beeks launched Back Up as a Service in Q1 20, and the release confirms that client uptake to date has been in line with management’s expectations. The group expects its first SaaS-based analytics offering to be launched in the next twelve months.
Positive outlook commentary: The release heralds that Beeks has entered the current financial year with a significantly expanded business, increased customer base, expanded product offering and an increased number of Tier-1 reference points. Management remain “excited” about the future for the group.