We have refreshed our momentum style screen for the first time since inception on 26 July 2016. As before, the screen selects the 25 stocks exhibiting the most extreme momentum characteristics, according to our measurement method. From these we have selected 10 to focus on. Since inception the screen has underperformed both the main small-cap and micro-cap indices against a background of generally rising momentum. We have noted a subset of the basket, where decelerating momentum at the time of m
Companies: IQE SDY SUN ERGO NETD G4M GFIN ULS FUTR
In a brief trading update, NetDimensions has said that both revenue and invoiced sales for Q316 were slightly ahead of Q315. This is after the group reported a 1% decline in revenue in H1. We are maintaining our forecasts, which imply a 9% revenue growth in H2 and hence a strong performance in the traditionally busy Q4. In early October, NetDimensions said it has had an unsolicited approach that “may or may not lead to an offer being made for the entire issued share capital of the company”. We n
While NetDimensions (AIM: NETD, OTCQX: NETDY) announced a modest reduction in H1 revenue due to a decline in services and support, this masked an 8% improvement in high-margin licence revenues to $6.8m. Costs fell dramatically, enabling a sharp reduction in the EBITDA loss. New business is increasingly lumpy as the group targets large enterprises in high-consequence industries and we have conservatively eased our numbers. Nevertheless, the quality of business continues to improve with the emphas
In a short trading update, NetDimensions (AIM: NETD, OTCQX: NETDY) has said that H1 revenues were lower than expected due to delays in deal rollouts. The delays are expected to continue into H2; hence we have cut our FY16 revenue forecast by $1.2m to $27.0m. Nevertheless, the adjusted EBITDA loss has significantly improved and we now forecast the group to trade at breakeven in FY16 (previously a $0.6m loss). We are maintaining our FY17 forecasts, but note that if the deal rollouts do materialise
NetDimensions (AIM: NETD, OTCQX: NETDY) grew revenues by 12% in FY15 to $25.4m, vs January’s guidance of c $25.0m. The adjusted loss was better than we expected at $0.7m (we forecast a $2.5m loss), with gross margins and operating costs both better than expected. The industry outlook remains favourable and the group’s US peers have rebounded recently, in the wake of a two-year bear market. These peers continue to trade at significant EV/sales premiums and hence we still believe NETD shares could
In a brief trading update, NetDimensions (AIM: NETD, OTCQX: NETDY) has said that FY15 trading was in line with expectations. It also says that the operating cost base actually fell over the year and hence the adjusted EBITDA loss will be better than current market expectations. Despite a significant de-rating in the shares of its US-quoted human capital management software peers over the last two years, these companies continue to trade on punchy EV/sales ratios. Hence we continue to believe the
NetDimensions (AIM: NETD, OTCQX: NETDY) has raised £7.2m/$11.1m gross (c £6.8m/$10.5m net) in a placement of new ordinary shares. In contrast to the May 2013 placement, which was primarily about boosting the sales team, the latest fund-raising is largely about investing in R&D and support functions. It will also bolster the balance sheet, which will make the group’s products an easier sell to its increasingly blue-chip customer base, and will also provide funds for acquisitions. While there is d
In a brief Q3 update, NetDimensions (AIM: NETD, OTCQX: NETDY) announced that revenue and invoiced sales for Q3 were ahead of Q314. Secure SaaS revenue grew by 24% to $2.6m (we are forecasting $5.2m revenues in H2), with invoiced SaaS sales ahead by 40% to $2.8m. SaaS is the business model of preference (NETD also offers annual licences and perpetual licences), and no data were disclosed on the other revenue types. However, deal size continued to grow, albeit at a slower rate than in recent quart
H1 results for NetDimensions (AIM: NETD, OTCQX: NETDY) were in line with the July trading update. Revenues grew 16% to $10.6m, as the group returns to more sustainable growth levels, following the 40% growth attained in FY14. We have eased our gross margin forecasts, due to the changing product mix, and our more conservative professional services assumptions, and we have eased our FY15 revenue forecast. This results in a higher FY15 loss, and we forecast the group will return comfortably to prof
NetDimensions (AIM: NETD, OTCQX: NETDY) has announced that H1 revenues grew by 16% to $10.6m, indicating that the group is on track to meeting our FY15 forecasts. The average new deal size more than doubled, reflecting the group’s focus on winning larger customers in its targeted high-consequence industries, along with the higher level of services associated with these larger deals. Given that the company's US peers continue to trade at significant EV/sales premiums, we continue to believe that
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FYJun 21 revenues have come in 4% ahead of our forecasts at £58.1m and we adjust FYJun21 adj. PBT 6% upwards to £13.5m. We hike FY22 revs and adj. PBT by 2%. FY21 revenue growth of 23% (organic) is the strongest since 2016 and a marked hike from last year’s CV19 impacted 12%. The consistently remarkable figure is monthly ARPC, which has risen 16% yoy to £1,251. As DOTD continues to add functionality we believe that figure will head towards £2,000 over the coming years – that’s an awful lot of up
Companies: dotDigital Group plc
The full year results are marginally ahead of our revised upwards forecasts. There is solid momentum across the Group and we see double-digit revenue growth and expanding margins ahead. This double-digit forecast growth rate is driving the rating of the stock down to a single digit EV/EBITDA rating. Buy.
Companies: Shearwater Group plc
What’s new: AGM update reminds shareholders OTM is focused on building a “differentiated, technology-enabled property business providing services to agents, housebuilders, advertisers and consumers that offers best in class products and platforms across the broader property marketplace.”
Early indications of success include:
5 month growth in advertisers of 4.5% driven by 4.9% rise in agency branches
137 leads per advertiser in June 2021, which is 5.4% above average per month for the si
Companies: OnTheMarket Plc
More new contracts announced
Companies: 7Digital Group PLC
Companies: Bango plc
Earnings in FY21E are expected to be more than 6% ahead of the forecasts we set last summer. For any company trading through a pandemic year, this is a decent beat in our opinion. With the stock trading at the bottom of its two-year trading range, we can say with some surety that an earnings surprise was definitely not in the price. Buy.
Today’s AGM statement indicates strong progress on agreements with distributors, mining the back catalogue, developing interest in planned releases and attracting talent. The update increases our confidence in tinyBuild’s ability to at least meet expectations.
Companies: tinyBuild Inc.
FDM has delivered a strong H1, with revenues modestly below last year (which included a full quarter pre-COVID) and profitability buoyed by careful cost control and a recovering demand profile across most geographies. The group continues to invest for long-term growth in a number of areas, but despite this, and even with ongoing COVID uncertainty in multiple locations, the tone is confident, and management appear comfortable with delivering at least our (and consensus) estimates for the year. H
Companies: FDM Group (Holdings) plc
Netflix reported a mixed result as it managed to surpass its rather modest guidance of 1 million net subscriber additions by adding 1.54 million subscribers. The company’s revenues surpassed Wall Street expectations but there were concerns associated with the company losing nearly 430,0000 subscribers in its core North American market. Competitive pressures and the limited Originals content being rolled out in the first half of the year was responsible for this loss of subscribers. However, the
Companies: NETFLIX (NFLX:NYSE)Netflix, Inc. (NFLX:NAS)
What a difference a year makes - 12 months ago, the focus, quite understandably, was on the course of the pandemic and the lifting of the Lockdown (1) measures. For investors, it was the sustainability of the rally in markets seen since March 2020. Today, while we are still thinking about the lifting of lockdown measures, we are also concerned about two “old favourites” from previous decades. Inflation and the parlous state of public finances. The BoE has said that although CPI inflation rose to
Companies: AEMC BVC BAG BRSD BWNG CBOX CEG CTG CLG CML CRPR DNK EML ESC FAR FA/ GPH INSE MTW MOTR MMAG NRR NESF NMCN NSF OTMP OBD SAVE SCS STVG SNX SYS TMG TGL VLS VOG WYN
Bidstack is a provider of digital advertising technology and services aimed at globally scaling advertising revenue within the interactive entertainment industries, especially the global video games industry across multiple platforms. Its proprietary technology is capable of inserting adverts into natural advertising space within games enabling brands and advertisers to reach up to c3 billion gamers around the world and provide an additional monetisation strategy for games developers. The native
Companies: Bidstack Group Plc
Re-initiation: Inflection Point
A year of trademark delivery of organic and inorganic growth lifted revenue 16%, recurring revenue +26% – including SaaS revenue +47%, and ARR +50% to £69.3m. FY to April 2021 began and ended within the pandemic, yet results are consistent with Ideagen’s historical strength in compliance software for regulated industries – including raising a £49m war chest and completing three acquisitions, while achieving recurring revenue at 83% of group revenue expanding in the US to deliver 36% revenue from
Companies: Ideagen PLC
Innovative Eyewear, Lucyd's US operating company, has announced the start of a crowdfund in the US, seeking to raise up to US$500,000. The pre-money valuation for the fundraise has been set at US$20m.
Companies: Tekcapital Plc
Companies: GetBusy Plc