Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul>
<li>Fastly's first quarter 2024 results demonstrate both promising advancements and headwinds that underscore the complexity of its market environment.</li>
<li>Revenue growth of 14% year-over-year to $133.5 million surpassed the midpoint of Fastly's guidance, reflecting effective customer growth and retention initiatives.</li>
<li>The customer base expanded to 3,290, marking an increase from previous quarters.</li>
</ul>


Fastly's first quarter 2024 results demonstrate both promising advancements and headwinds that underscore the complexity of its market environment.
Revenue growth of 14% year-over-year to $133.5 million surpassed the midpoint of Fastly's guidance, reflecting effective customer growth and retention initiatives.
The customer base expanded to 3,290, marking an increase from previous quarters.


Fastly Inc.: How Is The Management Carrying Out The Expansion into New Market Segments?

<ul>
<li>This is our first report on edge cloud platform provider, Fastly.</li>
<li>The company reported its fourth quarter 2023 earnings with revenue of $506 million, a 17% year-over-year growth.</li>
<li>The company also reported a record fourth-quarter revenue of $137.8 million, a 15% year-over-year and 8% quarter-over-quarter increase.</li>
</ul>


This is our first report on edge cloud platform provider, Fastly.
The company reported its fourth quarter 2023 earnings with revenue of $506 million, a 17% year-over-year growth.
The company also reported a record fourth-quarter revenue of $137.8 million, a 15% year-over-year and 8% quarter-over-quarter increase.


Fastly Inc: What Is Its Biggest Competitive Advantage? - Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Capital Markets

<ul>
<li>Baishan Cloud, China’s independent edge cloud service provider, filed to go public in Hong Kong. CICC and investment bank Haitong are the lead underwriters in this offering.</li>
<li>Founded in 2015, <a href="https://www.smartkarma.com/entities/beijing-baishancloud-technology-co-ltd" target="_blank" data-smartkarma-citation="entities:40988:1" rel="noopener">BaishanCloud (1568617D HK)</a> is led by its CEO and Founder, Mr. HUO Tao, and a highly experienced founding team.</li>
<li>I believe the company will achieve a break-even this year, coupled with a strong international expansion, potential revenue acceleration and gross margin improvement as the business continues to scale up.</li>
</ul>


Baishan Cloud, China’s independent edge cloud service provider, filed to go public in Hong Kong. CICC and investment bank Haitong are the lead underwriters in this offering.
Founded in 2015, BaishanCloud (1568617D HK) is led by its CEO and Founder, Mr. HUO Tao, and a highly experienced founding team.
I believe the company will achieve a break-even this year, coupled with a strong international expansion, potential revenue acceleration and gross margin improvement as the business continues to scale up.


Baishan Cloud IPO Preview: Break-Even Is Likely To Be Achieved in 2024

<ul>
<li>Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. </li>
<li>The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. </li>
<li>Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. </li>
</ul>


Freshworks, a cloud-based customer services software unicorn, held its first Investor Day on September 7, 2023. Management highlighted the long-term target to deliver the Rule of 40 by 2025. 
The 2023 Investor Day agenda included company vision and strategy, solutions in action, strategy for durable growth, customer spotlight, and financial overview, among others. 
Management plans to deliver a long-term balance of growth and profitability, with the 2026 model leading to an FCF margin of 20%+ and $1B+ revenue. 


Freshworks: 2023 Investor Day and Valuation Update

Fundamental Short Selling Research

Eric Fernandez, CFA

TwoRiversAnalytics

<ul>
<li>This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. </li>
<li>The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized.</li>
<li>This week we flag: Fastly, Affirm Holdings, Bloom Energy, Wynn Resorts</li>
</ul>


This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows.  It considers interest expense, capex and short term maturities for additional input. 
The companies may not be viable given cash flows and capital structures.  These shorts tend to have  higher betas  and can have strong down moves as the crisis is recognized.
This week we flag: Fastly, Affirm Holdings, Bloom Energy, Wynn Resorts


Solvency Risk Short Candidates: Fastly, Affirm Holdings, Bloom Energy, Wynn Resorts

United States

MoneyGram International, Inc. provides payment services to consumers and businesses through a network of agents and its financial institution customers. The Company enables consumers to make payments and to transfer money around the world.

Sabre Corporation provides technology solutions to the global travel and tourism industry. The Company offers tours and travel services, as well as, online reservations for airlines, hotels, cruises, car rental companies, and vacation packages.

CSG Systems International, Inc. provides customer care and billing solutions for cable television providers, direct broadcast satellite providers, on-line services markets, and telephony providers. The Company offers a suite of processing and related services, as well as software and professional services which automate customer care and billing functions.

Everi Holdings Inc., operates as a holding company. The Company, through its subsidiary, designs, develops, and manufactures casino games, as well as provides cash access and customer relationship marketing technologies to the gaming industry. Everi delivers products and services to gaming properties worldwide.

Hackett Group, Inc. provides business consulting and technology implementation services.  The Company offers best practice research, benchmarking, business transformation, and working capital management services.  Hackett Group has offices in cities throughout the United States, Europe, and India.

Boku, Inc. provides online mobile payment services. The Company offers a payment platform that integrates into mobile network operator protocol and enables people to pay for the goods using their mobile phone. Boku serves customers worldwide.

Conduent Inc operates as a business process services company. The Company specializes in transaction-intensive processing, analytics, and automation. Conduent serves the commercial industries, healthcare, and public sectors.

Cass Information Systems, Inc. provides freight and utility invoice payment services to Fortune 500 and major logistics companies across North America.  The Company also provides specialized banking services to privately held companies in St. Louis, Missouri, and to churches throughout the United States.

Rackspace Technology, Inc. provides information technology services. The Company offers colocation, managed cloud and hosting, compliance assistance, enterprise security, and data protection services. Rackspace Technology serves customers worldwide.

i3 Verticals, Inc. provides payment and software solutions. The Company offers electronic payment services to education, non-profit, public sector, property management, and health care industries. i3 Verticals serves clients in the United States.

Bringspring Science and Technology Company Limited provides third-party data center services, information technology solutions to key industries and financial IT outsourcing services. The Company's main products include IT services.

Bringspring Science & Technology (300290 CH)

Future Architect, Inc. provides information system and consulting services.  The Company offers a variety of services including system design and development of application software.

SHIFT Inc. offers information technology outsourcing services. The Company provides outsourcing software testing services to corporations and individual clients. SHIFT also provides software solutions and consulting services, as well as educational classes and programs.

PCI-Suntek Technology Co., Ltd. provides customer service solutions for telecommunication service providers, banks, and securities firms.  The Company develops voice service systems, calling center systems, telecommunication operation and maintenance systems, and other value-added service solutions.

Data#3 Limited provides Information Technology (IT) solutions to business and government markets in Australia.  These solutions integrate equipment and software from leading suppliers with Data#3's own design, management, installation and support services including procurement, recruitment and application services.

Mastek Limited provides software solutions and integration services for the financial services, insurance, manufacturing, telecom and retail sectors.

DTS CORPORATION provides system, operation, and network engineering services for financial and communication-related companies.  The Company also provides product services and support services including system development, maintenance, and management.

Jasmine Telecom Systems PCL provides a wide range of telecommunications services and equipment. The Company leases submarine fiber optic cable network and provides satellite telecommunications,  Internet and satellite-based mobile communications services. Jasmine also supplies, designs, and installs telecommunication and computer networks, including other peripheral equipment.

Iress Limited provides real-time information services to businesses that specialize in the equity, equity options and future information markets in Australia and New Zealand. The Group supplies a range of pricing data, charting, news and equity and equity derivatives and also offers real-time trading tools, including a domestic order routing product and financial

Digital China Information Service Company Ltd is principally engaged in systems integration, technical services, application software development and finance special equipment related businesses.

Digital China Information Service (000555 CH)

Fastly, Inc. provides infrastructure software. The Company offers cloud computing, image optimization, security, edge computer technology, and streaming solutions. Fastly serves customers in the United States.

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Fastly Inc (FSLY US)

Fastly Inc.: How Is The Management Carrying Out The Expansion into New Market Segments?

Fastly's first quarter 2024 results demonstrate both promising advancements and headwinds that underscore the complexity of its market environment.

Baptista Research

Fastly Inc: What Is Its Biggest Competitive Advantage? - Major Drivers

This is our first report on edge cloud platform provider, Fastly. The company reported its fourth quarter 2023 earnings with revenue of $506...

Baptista Research

Baishan Cloud IPO Preview: Break-Even Is Likely To Be Achieved in 2024

Baishan Cloud, a founder-led edge cloud service provider in China, filed to list IPO on HKEX. The company develops AI-empowered edge cloud platform...

Andrei Zakharov

Freshworks: 2023 Investor Day and Valuation Update

2023 Investor Day highlights massive TAM, ongoing business momentum, adoption of multi-product strategy, and AI monetization opportunities: PT...

Andrei Zakharov

Solvency Risk Short Candidates: Fastly, Affirm Holdings, Bloom Energy, Wynn Resorts

This model seeks companies facing dangerously high leverage coupled with negative or declining cash flows. This week we flag: Fastly, Affirm...

Eric Fernandez, CFA

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