In today’s briefing:
- TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others
- Korea Small Cap Gem #27: Wins Co.
- C3.ai (AI):- Expansion Of The Generative AI Market & 3 Other Fundamental Aspects Fueling Its Growth!
- Kulicke and Soffa Industries: A Story Of Continued Leadership in Core Markets
- Envestnet Inc.: Initiation Of Coverage – Discover the Top 6 Drivers Behind Its Rapid Expansion! – Financial Forecasts
- IonQ Inc.: Initiation Of Coverage – Accelerating Innovation Through Hybrid Quantum Computing! – Major Drivers
- N-able Inc.: Initiation Of Coverage – Investment & Operation With A Growing Total Addressable Market (TAM)! – Major Drivers
- Progress Software Corporation: Initiation Of Coverage – Decoding the 4 Primary Contributors to Its Growth Surge! – Major Drivers
- Fastly Inc: What Is Its Biggest Competitive Advantage? – Major Drivers
- CarGurus Inc.: Initiation Of Coverage – Does Its Value Proposition Truly Constitute A Competitive Advantage? – Major Drivers
TCS US$1.1bn Placement – Relatively Small but Isn’t Well Flagged, Could Have Implications for Others
- Tata Sons, holding company of Tata Group, is looking to raise around US$1.1bn via selling a 0.65% stake in Tata Consultancy Svcs (TCS IN).
- The deal doesn’t appear to be well-flagged although it could be part of Tata Sons’ recent moves to avoid an RBI mandated listing next year.
- In this note, we talk about the deal dynamics and run the deal through our ECM framework.
Korea Small Cap Gem #27: Wins Co.
- Wins Co. is engaged in the business of developing and supplying information security solutions and developing software related to network security to protect networks from cyber threats and viruses.
- The company has a consistent growth in sales and profits. It also has a strong balance sheet. At the end of 2023, it had a debt ratio of 15.4%.
- Wins Co is trading at EV/EBITDA of 1.7x, P/E of 7.8x, and P/B of 0.9x in 2024 which are 75%, 26%, and 25% lower than the historical valuation multiples.
C3.ai (AI):- Expansion Of The Generative AI Market & 3 Other Fundamental Aspects Fueling Its Growth!
- This is our first report on AI software platform company, C3 AI. The company has demonstrated positive performance in their third-quarter fiscal 2024 results with a total revenue of $78.4 million, marking an 18% YoY growth and surpassing their guidance range.
- The total number of customer engagements has also seen an increase of 80% compared to the previous year.
- The company reported a non-GAAP gross profit of $54.7 million with a gross margin standing at 70%.
Kulicke and Soffa Industries: A Story Of Continued Leadership in Core Markets
- This is our first report on capital equipment manufacturer, Kulicke and Soffa Industries Inc.
- The company delivered their Q1 2024 earnings recently, announcing an impressive revenue of $171.2 million for the December quarter.
- However, not all news from the call was as positive because GAAP net income stood at only $9.3 million, alongside non-GAAP earnings per share at $0.3. However, this was still slightly higher than the guidance midpoint.
Envestnet Inc.: Initiation Of Coverage – Discover the Top 6 Drivers Behind Its Rapid Expansion! – Financial Forecasts
- This is our first report on Envestnet, a leading provider of integrated wealth management solutions.
- The company announced strong financial results for the fourth quarter and full year of 2023 in its latest earnings call.
- The company reported solid growth and successfully executed its strategic initiatives, leading to significant margin expansion.
IonQ Inc.: Initiation Of Coverage – Accelerating Innovation Through Hybrid Quantum Computing! – Major Drivers
- This is our first report on quantum computing systems producer, IONQ. The company has reported its Fourth Quarter and Full Year 2023 earnings, showing strong performance within the quantum computing sector.
- The company generated $6.1 million in Q4, bringing the total recognized revenue to over $22 million for the full year, exceeding the upper end of their projected range.
- For the year, IonQ achieved $65.1 million in bookings, greatly surpassing its original bookings midpoint of $40 million, providing evidence of successful performance by both the technical and commercial team.
N-able Inc.: Initiation Of Coverage – Investment & Operation With A Growing Total Addressable Market (TAM)! – Major Drivers
- This is our first report on cloud-based solutions provider, N-able Technologies Inc.
- The company reported a solid performance for the fourth quarter and fiscal year 2023, celebrating a revenue growth of 14% in constant currency for the whole year, and 11% for the fourth quarter.
- The adjusted EBITDA in the fourth quarter was reported as $39.2 million, showing a 36% margin, and $143.4 million for the full year, indicating a 34% margin.
Progress Software Corporation: Initiation Of Coverage – Decoding the 4 Primary Contributors to Its Growth Surge! – Major Drivers
- Progress Software Corporation concluded its fourth fiscal quarter of 2023 with strong performance across its portfolio, especially in its OpenEdge, DataDirect, and Sitefinity products.
- The company recorded top-line revenues of $178 million, which can be attributed to stable demand for its products.
- Further, the company’s net retention rate was commendable, remaining at a steady 100%, and operating margins were better than expected.
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 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.
CarGurus Inc.: Initiation Of Coverage – Does Its Value Proposition Truly Constitute A Competitive Advantage? – Major Drivers
- This is our first report on online automotive marketplace, CarGurus.
- The company ended 2023 on a strong note, surpassing expectations and successfully accelerating their revenue growth across their platform.
- Despite challenges faced by customers, such as weak consumer demand, the lack of affordability, and increased costs linked to floor plan financing, CarGurus’ listings business demonstrated commendable resilience, pricing power, and growth acceleration.
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