If there’s one key takeaway from COVID-19, it’s that the pandemic has accelerated ‘cloud’ adoption, and focused C-suite attention on cost savings, productivity & supply chain optimisation. All of these secular trends are right in the sweetspot of Rosslyn’s Big Data & Spend Analytics SaaS platform, RAPid. The company today announcing that it had extended 3 contracts, worth a combined £0.9m of ARR (annualised recurring revenues) and £1.5m in total value.
Namely with an international telecoms business, a world-renowned American university, and a UK government department to between Sept’21-Jun’23. Highlighting once again, the criticality of the firm’s leading technology and services. CEO Roger Bullen commenting “We’re pleased that these blue-chip clients are prepared to commit for longer periods. This says a great deal about confidence in Rosslyn, and our ongoing commitment to maintain and improve our products."
In terms of the numbers, these 3 renewals add further visibility, support our £6.4m FY21 ARR estimate (£6.0m LY), and reinforce the modest 9.5p/share valuation.
Moreover, if the Board can achieve its strategic objective of tripling ARR by April’23 – then there should be no reason why the valuation could not justify at least a 3x-5x EV/sales multiple: equivalent to £54m-£90m, or 16p-26p/share.