Daily Brief TMT/Internet: Wix.Com Ltd, Credo Technology Group Holding, Ambarella Inc, Nano Dimension , Lions Gate Entertainment , iHeartMedia, Xerox Holdings and more

• In the Q1 2024 earnings, Wix.com Ltd.’s management shared a very positive outlook based on the company’s recent financial results, strategic initiatives, and product advancements.
• Key achievements included stronger-than-expected Q1 growth, with booking growing to over $457 million and revenue reaching $420 million, exceeding the company’s previous guidance.
• This performance led to free cash flow growth to more than $111 million.

• Credo’s fiscal 2024 earnings presented a blend of robust achievements and markers for future growth, tied along with inherent business risks associated with developing and scaling high-speed connectivity solutions.
• The company highlighted record annual revenue alongside a notable uplift in revenue derived from AI-powered workloads, indicating successful alignment with leading-edge technological demands.
• Revenue for fiscal year 2024 stood at $193 million, up by 5% year-over-year, with a marked improvement in non GAAP gross margins to 62.5%.

• Ambarella Inc. recently reported a first quarter fiscal year 2025 earnings.
• The company stated their first quarter revenue was 1% above estimated figures with an increase of 6% on a sequential basis.
• Artificial Intelligence (AI) products constituted two-thirds of this revenue.

Nano Dimension has entered into a definitive agreement to acquire Desktop Metal (DM) in an all-cash deal worth $185m ($5.50 per DM share), with potential adjustments that could reduce it to $135m ($4.07 per share). The deal is subject to regulatory approvals and DM shareholder approval and is expected to close in Q424. With complementary product lines, the combined entity will offer a broad range of additive manufacturing solutions covering multiple verticals and materials, supporting the entire value chain from prototyping through to mass manufacturing.

• Lions Gate’s recent business developments and strategic outlook present a mixture of opportunities and challenges.
• Over the past decade, Lions Gate has transitioned from primarily a Hollywood Studio, heavily reliant on theatrical releases like ‘Twilight’ and ‘Hunger Games’, to being a major player in the streaming space through its acquisition of STARZ in 2016.
• This pivot has expanded its revenue streams and fortified its position against industry shifts toward digital consumption.

• IHRT is expected to experience positive growth in the upcoming quarters, driven by its podcasting business
• CEO and CFO have been buying stocks, indicating confidence in the company’s future prospects
• Potential debt restructuring and positive growth could lead to a significant increase in IHRT’s equity value by the end of 2025.

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.

• Xerox is considered a short position due to being in a declining industry and losing market share, having a leveraged capital structure with rising costs, and facing hidden liabilities
• The company’s free cash flow is believed to be overstated from receivables financing, making it more expensive than it appears
• Xerox has been criticized for poor capital allocation, corporate governance issues, and an Icahn greenmail exit, making it a risky investment in a struggling market.

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.