Daily Brief TMT/Internet: Baidu, Metalbook , Refy Cap , SenSen Networks, Komerce, Tuya Inc, Docebo , Intuit Inc, Arlo Technologies Inc and more

• Baidu (BIDU) reported C4Q23 top line, non-GAAP operating profit and GAAP net income inline, 9.4% and (43%) vs. our estimates, and inline, 8.2% and (46%) vs. consensus. 
• We believe LLM is fundamentally an upgrade of search; further, BIDU is a 2B/general AI play in China, a country filled with 2C/specialized AI players;
• We cut our TP for BIDU from US$157 to US$116 and maintain BUY.

• While some B2B ecommerce firms are struggling, others are thriving. India-based Metalbook, a B2B platform focused on the global metal supply chain, said it is eyeing US$200 million in annualized revenue run rate by the end of the 2024 fiscal year.
• Founded in 2021, the startup has raised US$15 million in a series A round led by Rigel Capital. FJ Labs participated, as well as existing investors Axilor Ventures and Stride Ventures, among others.
• Metalbook helps customers through their entire metal manufacturing and procurement cycle. This includes everything from buying and selling to customization, logistics, scrap recycling, as well as financing.

• Refy, an AI-powered green asset fintech financier in Southeast Asia, has secured a pre-seed investment of US$525,000 from Wavemaker Impact (WMi).
• This funding will allow Singapore-based Refy to execute secured pilot projects, develop its technical platform, and assemble a specialised team with experience in green assets and industrial projects.
• Globally, there are investors to support large-scale projects (worth upwards of US$5 million), such as solar, wind, hydro farms, and geothermal facilities.

In H124 SenSen delivered positive free cash flow for the first time, a key milestone. The group’s Smart Cities focus and standardised business model supported steady top-line progression, as well as strong gross margin expansion and loss reduction. As end-H1 cash was boosted by an annual Australian development grant, we believe reaching positive free cash flow from the group’s core operating assets remains a key target. Below we outline a pathway for SenSen to deliver this target in Q4, underpinned by consistent top-line growth on a lower cost base.

• Komerce, an e-commerce enabler for small-to-medium enterprises (SMEs) in Indonesia, has received an undisclosed investment from Bukalapak co-founder Achmad Zaky and 500 Global.
• The funding will allow Komerce to accelerate product development and customer acquisition.
• Founded in 2020 by Darmawan, Syaefullah Syeif (COO), and Satriyo Budi Utomo (CTO), Komerce offers remote team development, shipping aggregators, e-fulfilment, omnichannel SaaS, and customer relationship management.

• Tuya 4Q23 beats. Tuya reported 4Q23 revenue of $64 million, up 42% Y/Y, while overall gross margin reached a historical high of 47.3% and non-GAAP net profit reached a new peak of $12.6 million, representing 19.5% of non-GAAP net margin, driven by a global downstream demand recovery, the end of industry restocking, and Tuya’s successful execution of its big customer- focused strategy and earlier restructuring.
• IoT PaaS contributed $47 million of revenue in 4Q23, up 45% Y/Y, driven by the normalization of downstream inventory and Tuya’s big customer-focused strategy.
• Meanwhile, Tuya sees a more balanced distribution between smart lighting and electrical versus smart safety and home appliances.

Key points

• Canadian company offering US$55/share for total of $100m in tender offer
• Potential for profit for odd-lot holders with current stock price at US$44.80
• US shareholders may face 15% dividend tax, reducing gains, but opportunity for 7% post-tax profit per account for odd-lot holders

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Intuit, a leading provider of financial management software solutions, has shown strong performance in its second quarter of fiscal year 2024.
• Reinforcing the company’s commitment to become a global Artificial Intelligence (AI)-driven expert platform, Intuit reported an 11% growth in revenue, and is on track to achieve its full fiscal year guidance of 11% to 12% revenue growth.
• As for Intuit’s tax service, TurboTax, revenue growth of 7% to 8% is expected for the Consumer Group for the full fiscal year.

• ARLO continued to grow the number of paid subscribers in Q4 2023 with the added tease of ARLO crossing 3 million paid subscribers in the first quarter of 2024
• ARLO is focusing on a service first approach where service is subsidizing the cost of hardware
• ARLO generated revenue of $135.1 million compared to our estimate of $135.5 million. Product mix was different than we had forecast