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>Splunk Inc. delivered a decent result and managed an all-around beat in the last quarter, marked by solid execution, operational discipline, and favorable customer engagement.</li><li>Total revenue experienced a healthy year-over-year increase, demonstrating Splunk's ability to achieve this growth while managing costs underscores its strategic approach.</li><li>Additionally, Splunk continued to innovate by leveraging AI in security and observability, introducing the concept of Splunk AI to empower organizations to detect, investigate, and respond more efficiently.</li></ul>

Splunk Inc. delivered a decent result and managed an all-around beat in the last quarter, marked by solid execution, operational discipline, and favorable customer engagement.Total revenue experienced a healthy year-over-year increase, demonstrating Splunk's ability to achieve this growth while managing costs underscores its strategic approach.Additionally, Splunk continued to innovate by leveraging AI in security and observability, introducing the concept of Splunk AI to empower organizations to detect, investigate, and respond more efficiently.

Splunk Inc.: Strategic Partnership with Microsoft & Other Major Drivers

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

<ul>
<li>Following takeover rumors surrounding <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> , private equity firms finally agreed to acquire a US-based low-cost observability provider for ~$6.5B.</li>
<li>American private equity firm Francisco Partners and global alternative asset manager TPG offered $87 per <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> share in an all-cash transaction.</li>
<li>The <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a> Board of Directors approved the buyout deal, and is expected to close in late 2023 or early 2024.</li>
</ul>


Following takeover rumors surrounding New Relic Inc (NEWR US) , private equity firms finally agreed to acquire a US-based low-cost observability provider for ~$6.5B.
American private equity firm Francisco Partners and global alternative asset manager TPG offered $87 per New Relic Inc (NEWR US) share in an all-cash transaction.
The New Relic Inc (NEWR US) Board of Directors approved the buyout deal, and is expected to close in late 2023 or early 2024.


New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

Equity Capital Markets

<ul><li>Splunk managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.</li><li>In cybersecurity, Splunk expanded its footprint within a worldwide IT services and consulting firm, including the addition of Splunk Enterprise Security.</li><li>They closed a large transaction in Europe for Splunk Cloud and Splunk IT Service Intelligence with a global semiconductor manufacturing company in Q1.</li></ul>

Splunk managed to surpass the revenue expectations as well as the earnings expectations of Wall Street.In cybersecurity, Splunk expanded its footprint within a worldwide IT services and consulting firm, including the addition of Splunk Enterprise Security.They closed a large transaction in Europe for Splunk Cloud and Splunk IT Service Intelligence with a global semiconductor manufacturing company in Q1.

Splunk Inc.: Penetrating The Retailer Market Through The Immersive Commerce Experience – Key Drivers

<ul><li>Splunk completed the year on a positive note and delivered an all-around beat while exceeding its forecasted targets for revenue, total ARR, cloud ARR, operating margin, and free cash flow.</li><li>In Q4, they increased overall ARR by 18% year on year to $3.674 billion.</li><li>In Q4, Splunk secured major deals against a large enterprise competitor by demonstrating that adequate security, cloud migration, and pricing are insufficient.</li></ul>

Splunk completed the year on a positive note and delivered an all-around beat while exceeding its forecasted targets for revenue, total ARR, cloud ARR, operating margin, and free cash flow.In Q4, they increased overall ARR by 18% year on year to $3.674 billion.In Q4, Splunk secured major deals against a large enterprise competitor by demonstrating that adequate security, cloud migration, and pricing are insufficient.

Algosun Global

<ul>
<li>We double down on New Relic stock as we see operational improvement and a clear path to non-GAAP profitability. A strong balance sheet will help to survive an economic downturn.</li>
<li>The company will repay 0.5% senior convertible notes in 2023 and is not interested in diluting existing shareholders. New Relic ended 2QFY23 with $833M in cash and cash equivalents.</li>
<li>American activist investor Jana Partners held ~3.2M New Relic shares as of Nov-22. <a href="https://www.smartkarma.com/entities/new-relic-inc" target="_blank" data-smartkarma-citation="entities:16283:1" rel="noopener">New Relic Inc (NEWR US)</a>  shares underperformed in 2022, with shares down ~49%</li>
</ul>


We double down on New Relic stock as we see operational improvement and a clear path to non-GAAP profitability. A strong balance sheet will help to survive an economic downturn.
The company will repay 0.5% senior convertible notes in 2023 and is not interested in diluting existing shareholders. New Relic ended 2QFY23 with $833M in cash and cash equivalents.
American activist investor Jana Partners held ~3.2M New Relic shares as of Nov-22. New Relic Inc (NEWR US)  shares underperformed in 2022, with shares down ~49%


New Relic: $1B+ Revenue By FY24. Cost Discipline Will Drive Profitability

United States

Splunk Inc. develops web based application software. The Company provides software that collects and analyzes machine data generated by websites, applications, servers, networks, and mobile devices. Splunk serves customers worldwide.

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Splunk Inc (SPLK US)

Splunk Inc.: Strategic Partnership with Microsoft & Other Major Drivers

Splunk Inc. delivered a decent result and managed an all-around beat in the last quarter, marked by solid execution, operational discipline, and...

Baptista Research

New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...

Andrei Zakharov

Splunk Inc.: Penetrating The Retailer Market Through The Immersive Commerce Experience – Key Drivers

Splunk managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. In cybersecurity, Splunk expanded its...

Baptista Research

Splunk Inc.: Major Drivers

Splunk completed the year on a positive note and delivered an all-around beat while exceeding its forecasted targets for revenue, total ARR, cloud...

Baptista Research

New Relic: $1B+ Revenue By FY24. Cost Discipline Will Drive Profitability

We like New Relic’s turnaround story and believe revenue growth will accelerate in the coming years while the company will hit $1B+ revenue this year

Andrei Zakharov

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Splunk Inc.: Strategic Partnership with Microsoft & Other Major Drivers

Splunk Inc. delivered a decent result and managed an all-around beat in the last quarter, marked by solid execution, operational discipline, and...

Baptista Research

New Relic Takeover Valuation Analysis: The Buyout Price Looks Reasonable

​Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...

Andrei Zakharov

Splunk Inc.: Penetrating The Retailer Market Through The Immersive Commerce Experience – Key Drivers

Splunk managed to surpass the revenue expectations as well as the earnings expectations of Wall Street. In cybersecurity, Splunk expanded its...

Baptista Research

Splunk Inc.: Major Drivers

Splunk completed the year on a positive note and delivered an all-around beat while exceeding its forecasted targets for revenue, total ARR, cloud...

Baptista Research

New Relic: $1B+ Revenue By FY24. Cost Discipline Will Drive Profitability

We like New Relic’s turnaround story and believe revenue growth will accelerate in the coming years while the company will hit $1B+ revenue this year

Andrei Zakharov

Private equity firms Francisco Partners and TPG have agreed to acquire New Relic for ~$6.5B, with the deal expected to close in late 2023 or early...