TMT: Alibaba Group, Softbank Group, Money Forward, Shift Inc, Chicago Board Options Exchange Volatility Index, Inari Amertron, Tata Consultancy Svcs and more

• Shanghai is in lockdown and citizens are finding it hard to get enough food.
• Community group purchase has been taking consumers from e-commerce apps.
• The central government reiterates the zero-COVID policy, but the Omicron variant is spreading with very few death cases.

• Softbank has raised $2.4bn (¥300bn) from the sale of TMUS shares to DT with proceeds likely earmarked for VF2 and possibly supporting ongoing share buybacks
• The sale price is below market but surfacing cash is the more positive takeaway and should ease concerns on leverage that have lingered as tech valuations fall
• The impact on the discount to NAV is likely to be weaker than the reaction to the TMUS/DT monetization in August/September

• Q1 results are better than expected, achieving record-high quarterly growth in SaaS revenue
• Growth is driven by Corporate Customer ARR, which rose by 47% YoY
• For growth investors, Money Forward is out top pick in Japan

• Shift Inc (3697 JP) reported 2QFY08/2022 results last week. Revenue grew 43.5% YoY to JPY15.6bn (vs consensus JPY15.2bn) while OP 99.2% YoY to JPY1.9bn (vs consensus JPY1.1bn).
• Both enterprise and entertainment markets saw strong growth in revenue while GPM of enterprise biz further expanded during the quarter.
• Shift’s share price has moved up by about 16% since its results announcement and we think there is further upside.

• This is a follow up chart of the VIX Index that was shared last week
• While we have dipped in the very short term, the underlying pattern warns of a significant rise
• Such a development is likely to be seen with a falling S&P 500

• On April 13, Money Forward (3994, the company) announced 1Q (Dec-Feb) FY11/22 sales of 4.756bn yen (+37.2% YoY), EBITDA of -1.159bn yen (vs. 358m yen for 1Q FY11/21)
• Our 1Q earnings forecasts were sales of 4.363bn yen, EBITDA of -2.239bn yen, OP of -2.683bn yen, and SaaS ARR of 12.537bn yen
• SaaS ARR of 12.904bn yen includes 8.727bn yen for Business domain corporate customers (+46.7% YoY), 1.264bn yen for Business domain sole proprietors (+35.0% YoY)

• Money Forward (3994 JP) reported 1QFY11/2022 results yesterday. 1Q revenue grew 37.0% YoY to JPY4.8bn and beat consensus estimates by 4.4%.
• Operating losses for the quarter was JPY1.6bn and accounted for around 34.7% of revenues during the period.
• MF’s SAAS model has started taking-off, we would highlight that string user growth comes at the cost of heavy advertising and subsidies.

• Introducing expanded ESG tear sheet; maintain BUY
• Trimming FY22-23 earnings estimates
• Extended Shanghai lockdown potentially adverse
• Extending MOU timeline for CFTC JV

•  TCS’ performance highlight was its strong deal bookings of USD 11.3bn, supported by mega deals of ~USD 1.8bn TCV (~0.5/0.8% revenue impact for FY23/24E)
• Medium term drivers such as prioritization of tech budgets, strong execution framework (including high retention) and services breadth including industry platforms remain intact.
• Our target price of INR 4,210 is based on 32x FY24E EPS with EPS CAGR at 12% over FY22-24E and we maintain ADD on TCS

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• Tata Consultancy Services (TCS) reported revenue growth of 2.6% QoQ USD terms (3.2%QoQ CC) and margins of 25% in line with our estimates.
• Revenue growth was broad-based across verticals with communications, BFSI and retail leading the growth.
• TCV was strong at US$11.3bn (all-time high) growing 49% QoQ and 23% YoY- partly aided by two mega-deals of ~US$1 bn each.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.