The last two weeks have seen an uncharacteristically high amount of management selling. Vecima quietly exited from its AirIQ fleet management holdings, and some other surprising selling (and a little buying) from some high flying stocks. AcuityAds ($AT.TO) director Igal Mayer exercised 25,000 options set to expire but chose not to sell the resulting shares despite the possibility of the shares netting him $35,000+. There does not appear to be any minimum share requirements for board members
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With another technology IPO trading at 100%+ after the 1st day of trading (BigCommerce: $BIGC), it appears that institutional buyside is really having their way with venture capital and investment bankers. Off the back of this continued mispricing by bankers, we have decided to publish our SaaS Commerce Comparable table to help make the valuation picture more clear. eCom Store Platforms While BigCommerce trades at a near 6oo% discount to Shopify’s EV/Gross Profit, it is actually trading at a 25% premium to Shopify’s SaaS Growth multiple. At the same time while Shopify reported very strong merchant sales (up 83% Q/Q), […]
We have created a table that summarizes most comparable data from our previous surveys. This data is used in our relative equity valuations. For Institutional Equity Research subscribers, we are providing this table while also making all our raw data available to you on request in excel format.
Perspective on Technology – August 11, 2020 Lightspeed’s ($LSPD.TO) share price is up 16% (TSX Composite up 3%) since Tuesday, July 28. Fiscal Q1 (June 2020) revenue and headline EBITDA was better than we expected, but there are clear data points that have us continuing to believe $LSPD.TO does not deserve to be trading at a $SHOP-like SaaS multiple. Record Locations Yet Record Low Deferred Revenue “In the three months ended June 30, 2020, we engaged in several customer-focused initiatives, such as subscription discounts and deferred payment arrangements, aimed at supporting our customers during the COVID-19 Pandemic.” We understand the mix towards monthly/annual payment plans vs. multi-year, but that […]
We have published an update on Lightspeed post their fiscal Q3 results and Q4 guidance. Disappointing Fiscal Q3 2020 Results and Q4 2020 Guidance Misleading statements surrounding Growth continue Increasingly expensive and unprofitable acquisitions with little synergies and no path to improving margins Insider selling and treasury shares issuance are increasing the market float at the wrong time Reasons for the removal of Cash Flows from Operations guidance for the 2nd time is questionable Updated LTV vs. GC metrics (adjusting for the Gastrofix acquisition) Slowing Organic Growth will cause investors to push towards Profitability, yet consistent 10% EBITDA margins appear […]