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>nCino has posted its financial results for the second quarter of fiscal year 2025, delivering performance that exceeded initial forecasts in several key areas, including subscription revenues and non-GAAP operating income.</li><li>The company has observed a notable improvement in the financial services industry in the United States compared to the previous year.</li><li>nCino's growth in the U.S. has been robust, particularly within its existing customer base which seems keen on leveraging the company’s expanded platform capabilities.</li></ul>

nCino has posted its financial results for the second quarter of fiscal year 2025, delivering performance that exceeded initial forecasts in several key areas, including subscription revenues and non-GAAP operating income.The company has observed a notable improvement in the financial services industry in the United States compared to the previous year.nCino's growth in the U.S. has been robust, particularly within its existing customer base which seems keen on leveraging the company’s expanded platform capabilities.

nCino Inc.: The Tale Of International Market Penetration & Product Localization! - Major Drivers

<ul><li>nCino, an advanced cloud-based software for financial institutions, has reported its first quarter fiscal year 2025 financial results, showing a year-over-year increase in total revenues to $128.1 million, which signifies a 13% rise from the previous year.</li><li>Subscription revenues, forming 86% of total revenues, grew similarly by 13% to $110.4 million.</li><li>Growth across various sectors of the business, especially in the U.S. enterprise and community and regional markets, contributed to these improved financial metrics.</li></ul>

nCino, an advanced cloud-based software for financial institutions, has reported its first quarter fiscal year 2025 financial results, showing a year-over-year increase in total revenues to $128.1 million, which signifies a 13% rise from the previous year.Subscription revenues, forming 86% of total revenues, grew similarly by 13% to $110.4 million.Growth across various sectors of the business, especially in the U.S. enterprise and community and regional markets, contributed to these improved financial metrics.

nCino Inc.: Expansion into Consumer Lending Solutions Is A Key Growth Catalyst! - Major Drivers

<ul><li>This is our first report on SaaS player, nCino Inc.</li><li>The company's third quarter fiscal 2024 performance presented both opportunities and challenges in the midst of a complex economic environment.</li><li>The company announced a significant product win in relation to a consumer lending deal with an enterprise bank in the United States of over $200 billion.</li></ul>

This is our first report on SaaS player, nCino Inc.The company's third quarter fiscal 2024 performance presented both opportunities and challenges in the midst of a complex economic environment.The company announced a significant product win in relation to a consumer lending deal with an enterprise bank in the United States of over $200 billion.

nCino Inc: Initiation of Coverage – How nCino's Digital Solutions are Capturing the Financial Market! - Major Drivers

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Equity Capital Markets

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<a href="https://www.smartkarma.com/entities/root-inc" target="_blank" data-smartkarma-citation="entities:29692:1" rel="noopener">Root Inc (ROOT US)</a><a href="https://www.businesswire.com/news/home/20201020005703/en/Root-Inc.-Announces-Launch-of-Initial-Public-Offering" target="_blank" rel="noopener">announced</a> its IPO terms and it will offer 24.16 million shares of common shares in the IPO (22 million shares offered by Root and 2.16 million shares sold by a major shareholder). The IPO price is currently expected to be between $22 and $25 per share. However, we expect this IPO to receive a very high demand, and the IPO price range is likely to be raised prior to final pricing. 
We are including Root Inc in our model portfolio.
</div>We forecast the company to generate revenue of $616.1 million in 2020 (up 112.3% YoY) and $1,070.2 million in 2021 (up 73.7% YoY). From 2019 to 2022, we have assumed the company's revenue to increase by 78.9% CAGR. The combination of the company's exploding revenue growth and improvement in the reduction of net losses as a percentage of revenue is very impressive indeed.Our base case valuation for Root is an implied market cap of $13.2 billion, or $52.1 per share, which is 108% higher than the high end of the IPO price range of $25 per share. Given the very high upside, we have a positive view of the Root IPO and we include this stock in our model portfolio.


Root Inc (ROOT US)announced its IPO terms and it will offer 24.16 million shares of common shares in the IPO (22 million shares offered by Root and 2.16 million shares sold by a major shareholder). The IPO price is currently expected to be between $22 and $25 per share. However, we expect this IPO to receive a very high demand, and the IPO price range is likely to be raised prior to final pricing. 
We are including Root Inc in our model portfolio.
We forecast the company to generate revenue of $616.1 million in 2020 (up 112.3% YoY) and $1,070.2 million in 2021 (up 73.7% YoY). From 2019 to 2022, we have assumed the company's revenue to increase by 78.9% CAGR. The combination of the company's exploding revenue growth and improvement in the reduction of net losses as a percentage of revenue is very impressive indeed.Our base case valuation for Root is an implied market cap of $13.2 billion, or $52.1 per share, which is 108% higher than the high end of the IPO price range of $25 per share. Given the very high upside, we have a positive view of the Root IPO and we include this stock in our model portfolio. 

Root Inc IPO Valuation Analysis (Insurtech SaaS)

BigCommerce Holdings / Equity Capital Markets

BigCommerce Holdings (BIGC US) is a company with a SaaS platform that helps thousands of small and medium businesses to build online stores and it is preparing to complete an IPO on the NASDAQ exchange in the next few weeks.Similar to Shopify, BigCommerce's e-commerce platform helps customers to launch and expand their e-commerce stores and connect to popular online marketplaces and social networks. As of June 1, 2020, BuiltWith.com ranked BigCommerce the world’s second most-used SaaS ecommerce platform and top five overall among the top one million sites globally by traffic.Major investors of BigCommerce include SoftBank, Goldman Sachs, Revolution, General Catalyst, and GGV Capital.The company had sales of $112.1 million (up 22% YoY) in 2019 and $33.2 million (up 29.7% YoY) in 1Q 2020. The COVID-19 has helped the company's business to pick up in 1Q 2020 as more people spend more time at home and many of them try to start new e-commerce businesses using BigCommerce's platform. Operating losses increased slightly from $38 million in 2018 to $41 million in 2019. Operating loss as a percentage of revenue declined from -41.3% in 2018 to -36.6% in 2019. Operating loss as a percentage of revenue improved materially from -40.3% in 1Q 2019 to -22.5% in 1Q 2020.

BigCommerce Holdings (BIGC US) is a company with a SaaS platform that helps thousands of small and medium businesses to build online stores and it is preparing to complete an IPO on the NASDAQ exchange in the next few weeks.Similar to Shopify, BigCommerce's e-commerce platform helps customers to launch and expand their e-commerce stores and connect to popular online marketplaces and social networks. As of June 1, 2020, BuiltWith.com ranked BigCommerce the world’s second most-used SaaS ecommerce platform and top five overall among the top one million sites globally by traffic.Major investors of BigCommerce include SoftBank, Goldman Sachs, Revolution, General Catalyst, and GGV Capital.The company had sales of $112.1 million (up 22% YoY) in 2019 and $33.2 million (up 29.7% YoY) in 1Q 2020. The COVID-19 has helped the company's business to pick up in 1Q 2020 as more people spend more time at home and many of them try to start new e-commerce businesses using BigCommerce's platform. Operating losses increased slightly from $38 million in 2018 to $41 million in 2019. Operating loss as a percentage of revenue declined from -41.3% in 2018 to -36.6% in 2019. Operating loss as a percentage of revenue improved materially from -40.3% in 1Q 2019 to -22.5% in 1Q 2020. 

BigCommerce IPO Preview (A SaaS Competitor to Shopify)

United States

nCino, Inc. provides cloud banking solutions. The Company offers solutions to improves employee efficiency while enhancing the customer experience for onboarding, loans, and deposits across all lines of business. nCino serves customers worldwide.

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nCino (NCNO US)

nCino Inc.: The Tale Of International Market Penetration & Product Localization! - Major Drivers

nCino has posted its financial results for the second quarter of fiscal year 2025, delivering performance that exceeded initial forecasts in...

Baptista Research

nCino Inc.: Expansion into Consumer Lending Solutions Is A Key Growth Catalyst! - Major Drivers

nCino, an advanced cloud-based software for financial institutions, has reported its first quarter fiscal year 2025 financial results, showing a...

Baptista Research

nCino Inc: Initiation of Coverage – How nCino's Digital Solutions are Capturing the Financial Market! - Major Drivers

This is our first report on SaaS player, nCino Inc. The company's third quarter fiscal 2024 performance presented both opportunities and...

Baptista Research

Root Inc IPO Valuation Analysis (Insurtech SaaS)

Our base case valuation for Root is an implied market cap of $13.2 billion, or $52.1 per share, which is 108% higher than the high end of the IPO...

Douglas Kim

BigCommerce IPO Preview (A SaaS Competitor to Shopify)

BigCommerce Holdings (BIGC US) is a company with a SaaS platform that helps thousands of small and medium businesses to build online stores and it...

Douglas Kim

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