Blue Prism Share Discussion Threads

[useless23] 14/4/2017 10:28

Hello. I like what Blue Prism has to offer their customers but can someone put forward a case as to why investing at this price is a good idea? The current market cap is £353m. Cheers

[darola] 14/4/2017 08:26

Interesting that IBM are promoting BP when they have their own "Watson" product - guess that says a lot for the maturity "enterprise grade" status. With these big names pushing it and global commerce appearing to be hungry for it, this looks like it will be a big assistance to my comfortable retirement!!

"Interestingly, all new customers were secured indirectly via Blue Prism’s channel partners, blue-chip global organisations such as Accenture, Deloitte, Capgemini, Hewlett Packard Enterprise and IBM."

[mirabeau] 14/4/2017 07:35

Hot robotics stock Blue Prism breaks forecast ceiling again

13 April 2017

Rapid growth robotic process automation (RPA) specialist Blue Prism (PRSM:AIM) has again told the market it will beat revenue expectations.

‘Momentum has continued to build with 151 new software deals secured in the five months to 31 March 2017, of which 87 were new customers and 60 were upsells across 40 existing customers,’ the company update tells us today.

Interestingly, all new customers were secured indirectly via Blue Prism’s channel partners, blue-chip global organisations such as Accenture, Deloitte, Capgemini, Hewlett Packard Enterprise and IBM.

MULTIPLE UPGRADES

That’s the sixth time since its May 2016 IPO at 78p that the company has said forecasts were too low. That tells us two important things. First, there is clearly pent-up demand for this type of labour freeing, money saving workforce automation.

Robotic process auto 3

Secondly, even management finds it difficult to predict the market appetite and pace of take-up, let alone analysts.

Today’s news sees Roger Phillips, analyst at the firm’s broker Investec, up his 2017 revenue estimate to £20m. As recently as January he was anticipating just £13.05m.

PLENTY OF RED INK, BUT...

It’s worth noting that investors should expect plenty of red ink on the bottom line for some time despite the upgrades. According to Phillips, Blue Prism is likely to run up an £8m deficit on an earnings before interest, tax, depreciation and amortisation (EBITDA) basis this year, and roughly the same sized loss at a pre-tax level.

Losses are also predicted for 2018 and 2019, of £5.5m and £3m respectively on the EBITDA line.


But those figures are based on fairly conservative top line growth. Investec’s Phillip’s is pencilling in just £25m and £28m revenue for 2018 and 2019 respectively, or 25% and 12% growth, presumably taking the hint from management to err on the side of caution at this early stage.

We suspect that this is seriously underestimating growth and today’s record 555p share price (up 16% on Thursday) may in time look cheap.

[adorling] 13/4/2017 18:38

Very robust breakout today - should see further gains post Easter as more institutions realise this disruptive technology business model will be one of the greatest investment transformations of the decade. This has £30 written all over it in the next 2-3 years and I am pleased to have built a decent holding in my SIPP.

[hazl] 13/4/2017 18:22

Great post buffetteer...let's hope it pans out as you say.

[buffetteer] 13/4/2017 16:52

Panic
The reality is that they will lose money until the rate of growth slows at which point the need to invest in sales and support up-front will reduce and profits will flow ... and flownthey will because the gross margins are 90%.
I believe they will show a profit in 2018 as the revenues hit £30m+. In time profits should become v substantial - in say 3-5 yrs when revenues hit £100m profits should be £30-40m making it worth £1bn+ . There must be several big
Players sniffing around in this boom area right now.

[petewy] 13/4/2017 16:09

I'm not ramping but anyone hold RDT, which is cloud company with usual respectable client list. Interest is, it has GENPACT (PRSM related) as a partner.
This morning it jumped from from 7p to 9+p for no reason unless it's buyout.

[bamboo2] 13/4/2017 12:41

Bought in earlier with a tp at min 620, confirmed on an eod close above 539. Indicators look supportive to further positive price progress.

The Breakaway Gap formed this morning could become a support zone approx 500

Potential turns noted 5/5/17 and 15/5/17

edited, extra turn date added.

[hazl] 13/4/2017 12:26

Couldn't resist popping in!
Great stuff!
Agree sogoesit,potters' seems a bit of an eeyore at the moment....
on various threads I've noticed.
Cheer up ....it might never happen.

[sogoesit] 13/4/2017 12:23

Yep, "peak price" as you said presciently in post 989 pottermagic!

Most new businesses start at the bottom and climb to the peaks... as my bet is that this one will do; just another "peak" on the way. Lol

[pottermagic2310] 13/4/2017 12:06

LOLs... look at the Accounts... what are their all-in Costs vs Revenue and implied Profitability ?
What do all these additional Customers actually mean to increasing Costs, increasing Revenues and any increasing disparity between the two ?
When do the economies of scale actually kick in and present an actual Profit to the Business ?
.... but ride the highs while you can of course, be stupid not to, free money afterall

[mastermatto] 13/4/2017 11:57

600p today!

[high noon] 13/4/2017 11:46

Fantastic trading update today.

[petewy] 13/4/2017 10:46

Well I added this morning. I never thought I'd ever say this because I have read it so many times and it has never proved true.

£10 by Xmas!!!!!!!!!!!!!!!!

[runthejoules] 13/4/2017 09:07

Break even comes just after the robots have taken
Our jobs and we're so poor we have to sell all our shares

[panic investor] 13/4/2017 08:51

My only issue is that sounds like losses will continue as money is reinvested - at what stage do they break even ?Will be interesting to see the figs

[croasdalelfc] 13/4/2017 08:34

Software deals in FY 16 = 189Software deals in 5 months 17 = 151New customersFY 12-14 32FY 15. 25FY 16. 965 months 17. 87

[hazl] 13/4/2017 08:20

Ha!
Busy day elsewhere today but good luck to us people!

[sogoesit] 13/4/2017 08:10

Thanks, hazl, that's kind of you.
Remember, it's all your "fault" ;-)

[runthejoules] 13/4/2017 07:53

Wish I'd bought more!

[hazl] 13/4/2017 07:40

pleased for you sogoesit!

[sogoesit] 13/4/2017 07:37

Nice to have such a monthly trading update to look through the prism of blue...

[adorling] 13/4/2017 07:20

"This strong sales progress, coupled with ongoing momentum in the Group's pipeline gives the Board cause to expect that revenue for the full year will be significantly ahead of existing market expectations. As a result, and in order to continue to grow the business globally, the Group will invest further in its global sales and marketing activities."

Love these announcements - PRSM, well done!

[croasdalelfc] 13/4/2017 07:20

Since the year end.24th Jan ... 2017 comfortably ahead22nd Feb....2017 materially ahead13th April ...2017 significantly ahead

[hazl] 13/4/2017 07:20

Have high hopes for XSG in the future as well.
Water shortages will be relevant I'm sure of it.