In today’s briefing:
- Sea Ltd (SE US) – Take Rate Tiger
- Freee 4Q: Significant Decline in Losses; Soon to Turn Profitable
- Istyle: Mid-Term Success Could Drive 200% Share Price Surge
- VIS: Micro-Cap SaaS Provider Hitting an Inflection Point
Sea Ltd (SE US) – Take Rate Tiger
- Sea Ltd‘s 2Q2024 results reflected both the success of its bold strategies to drive growth in areas such as live-streaming whilst at the same time increasing take rates and profitability.
- Its core focus on competitive pricing, content, logistics, and especially advertising will help to drive growth, retention, and profitability as unit economics improve, whilst it rolls out its lending products.
- Competitive intensity has stabilised which should allow for take rates to rise higher, whilst Shopee is well positioned to further increase its lead. Valuations look reasonable given Sea Ltd’s profitable status.
Freee 4Q: Significant Decline in Losses; Soon to Turn Profitable
- Freee KK (4478 JP) reported 4QFY06/2024 and full-year results today. Earnings were in line with guidance, but operating losses have declined significantly beating consensus by a huge margin.
- The company has issued guidance which calls for a break-even or an adj. OPM of 3% for FY06/2025E suggesting freee’s investments in marketing and client acquisition have finally paid off.
- Freee’s share price has moved up slightly during the last few weeks, but still trading at a discount to its own multiples and at a steep discount to Money Forward.
Istyle: Mid-Term Success Could Drive 200% Share Price Surge
- Istyle Inc (3660 JP)’s share price surged 17% after strong FQ4 results, surpassing expectations and signaling a potential turnaround.
- Despite past challenges, iStyle’s ambitious mid-term plan promises increased monetization and stronger growth ahead.
- With mid-term revenue and profit far exceeding expectations, istyle’s future looks brighter, with it’s share price potentially rising by more than 200%.
VIS: Micro-Cap SaaS Provider Hitting an Inflection Point
- Visionstate is a rapidly growing SaaS provider for the facilities management industry across the globe.
- The Company is targeting a largely untapped market across hospitality, education, and healthcare.
- The Company has hit an inflection point in its financial results, as revenue is growing >100% and costs are declining dramatically.
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