Microsoft Inc: Acquisition Of Fungible Inc & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)

Microsoft delivered a mixed set of results for the last quarter as its revenues failed to meet Wall Street expectations but the company managed an earnings beat. Revenue for the Microsoft Cloud surpassed $27 billion, increasing 22% and 29% in constant currency. In the current economy, switching to the cloud is the greatest approach for any customer to reduce demand uncertainty and energy expenses while enjoying the benefits of cloud-native development. Enterprises have doubled the number of call

Microsoft Inc: The Designer Visual Design App & Other Developments, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (11/22)

Microsoft delivered a good result in the last quarter surpassing Wall Street expectations on all counts. Microsoft Cloud revenue surpassed $25 billion, increasing by 24% and 31% in constant currency. As the company navigates the cyclical dynamics affecting their consumer business, the management anticipate their larger commercial business to grow at about 20% in constant currency this fiscal year. Microsoft is getting more customers that want to grow and innovate with its existing infrastructure

Microsoft Corporation: The Continuing Cloud Momentum, The Miburo Acquisition & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (08/22)

Despite the massive size of its revenues, Microsoft has proven to be a remarkable story in terms of percentage-basis top-line growth over the past few years. Even in its most recent quarter, the company managed a double-digit top-line growth (around 12%) although it did fall short of Wall Street expectations in terms of both, revenues and earnings. The Microsoft Cloud achieved a quarterly revenue milestone of $25 billion for the first time, up 28% and 33% in constant currency. The company's bran

Microsoft Corporation: The Gaming Upside & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

Microsoft delivered a record third quarter which was driven by the persistent strength of the Microsoft Cloud. Its revenue surpassed $23 billion, up by 32% from the previous year. Over the tech stack, the company is expanding its opportunity and taking share as it helps its customers build resilience and differentiate. Microsoft has built a large client base for Azure with international giants ranging from Lufthansa to Bridgestone to BlackRock. With the increasing digitization trends, these comp

Microsoft Inc.: The Activision Blizzard Acquisition & Other Drivers 02/22

Microsoft took the gaming world by storm through its announcement of acquiring Activision Blizzard for $68.7 billion, using up nearly half of its cash reserves to make it the third-largest game developer in the world behind Tencent and Sony. The company experienced a record quarter, owing to the continued strength of the Microsoft Cloud, which surpassed $22 billion in revenue, up 32% year over year. The company is also expanding their infrastructure to the 5G network edge, assisting operators an

Alphabet vs Microsoft - A Comparative Analysis Of The Public Cloud Battle & Key Financial Metrics (12/2021)

Alphabet and Microsoft have traditionally been two of the most reliable tech blue-chips that most technology investors have in their long-term portfolios. While the core revenue generating business for both companies is slightly different with Microsoft having a heavy focus on SaaS offerings around Windows and Office and Alphabet being more focused on digital advertising, they have been traditional rivals in many aspects. Alphabet has won many a battle in the past versus Microsoft whether it was

Microsoft Corporation - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 11/05

Microsoft zoomed past the target price from our last report as the company delivered yet another stellar result driven by the strong adoption of Azure cloud offerings, excellent momentum in its Teams app and its Power Platform, the robust LinkedIn business and the gaming segment. It has been in the news after the recent rollout of the latest iteration of its Windows operating system — Windows 11. The company’s overall top-line was up 22% and the Microsoft cloud continues to be a major driver, co

Microsoft Corporation - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation

Microsoft had another solid quarterly result as it inched closer to the target price from our last report. The company saw a 21% top-line growth with a staggering 36% jump in commercial cloud offerings i.e., Microsoft 365 (formerly Office 365), LinkedIn, Dynamics CRM, and of course, its cloud infrastructure platform Azure. Azure’s 51% year-on-year growth was the highlight of the result as the cloud infra solution has slowly become a major contributor to Microsoft’s top-line. The company controls

Growth every Fortnite

With eGaming, Virtual Reality (VR) and Augmented Reality (AR) coming of age, we have examined the gaming industry to see if it can continue its staggering market growth and if these categories are still too early stage?

Sondrel Holdings - Siemens Holding

Following the news on Friday 1 December that Siemens has, subject to completion, disposed of its 11.2% holding in Sondrel at 6p per share, we see a significant buying opportunity. We believe the sale was for Siemens AG organisational convenience rather than in relation to Sondrel’s fundamentals. We have summarised the history of the relationship, our view on the rationale for the sale and touch on the latest industry outlook. We reiterate our 1-year price target of 74p which is just shy of the h

Intercede - Record contract win

Intercede has secured a major contract win with a large US Federal Agency, $6.6m of which represents licence fee for immediate recognition, with a further $1.4m in maintenance and support. The contract win lifts FY24 forecasts substantially higher, on the back of a previous upgrade last month, by +31% in revenue and +186% in EBITDA, with further improvement in FY25 and FY26 from associated support and maintenance. The order for Intercede’s MyID Credential Management Solutions came after a rigoro

CML Microsystems+ (CML, House Stock at 388p) - Growth in new and existing markets

LIBERUM: Cerillion: Learnings from the CMD

PROGRESSIVE: CML Microsystems: The unusually reliable semis co delivers, again

CML’s interim results to 30 September show that, despite challenging markets, the group continues to make progress. Revenue improved by 5% to £10.6m, up from £10.1m in H1 FY23. Profit from operations was flat at £1.9m, prior to third-party acquisition related costs from the MwT transaction of £0.3m and share-based payments. Cash balances at the period-end were £20.95m (31 March: £22.26m), after significant expenditure on product development, share buybacks and the FY23 final dividend. With the M

Morning Note – 4 December 2023

iomart - Solid interims demonstrate stability

iomart has delivered interims to September in line with unchanged expectations, alongside a small vertical focused acquisition, demonstrating the benefit of organic and acquired growth. 18% group revenue growth included cloud services growth of 20%, which comprised modest organic growth, price adjustments after last year’s strong energy price movements, and some slowdown in organic non-recurring revenue, before the benefit of the Concepta (August 2022) and Extrinsica (June 2023) acquisitions, ad

Morning Note – 5 December 2023

TPXimpact 1H24 Interim Results

TPXimpact reported a strong 1H24 performance and maintains FY trading guidance; we make some small tweaks and overall retain our expectations.

Journeo - The Merry Journey Continues

Journeo has released a positive trading update following strong business activity in October and November. The company references strong trading in its core Fleet and Passenger Systems divisions, as well as the newly acquired Infotec and MultiQ divisions. We expect that the investment made in the Infotec factory to facilitate higher production speed has contributed to clearing the prior backlog and the ability to win new orders. We believe the positive trading momentum will continue into FY24E a

Morning Note – 6 December 2023

The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties

Concurrent Technologies - FY23 trading update – revenue growth accelerating

Concurrent Technologies has released a FY23 trading update stating revenues in the current year are expected to be ahead of market expectations. Strong order intake has continued throughout the year and the significant investment in product development undertaken to target design-in wins has brought new customers (especially large Defence sector prime contractors), larger average single order sizes, and an increasing diversification of end markets. So far this year, Concurrent Technologies has w

Morning Note – 28 November 2023

New balance