Thanks for that WJCC, yes could be the reason.
On their website, the name which didn't appear in the OEM agreement rns:
And these articles confirm, surely, it is SAP:
hTps://www.sap.com/industries/retail.html
Looks quite exciting. For some reason I hadn't previously realised quite how big and important SAP was across the data world. |
True but I guess it depends on his salary and how much he needs to live on.
Interims on March 17th. Be interesting to listen to their presentation. I suspect the issue has been potential client preference to move to more easily installed cloud based modular systems with partner selling/installation rather than their more bespoke offering. Hence their contributing their tech to the 5 year enterprise OEM agreement for a new cloud based offering and the reduction in their professional services revenues. APTD are in the middle of doing something similar.
With EV approaching 2 x ARR, I'd be surprised if they're not bid for in H2. |
Yes, i'm probably quibbling, but he is the COO, and would he really be dumping the lot if he felt another quid or more was on the horizon. After all, that's another £80k+. Alternatively, he could have sold say half, and kept the rest for the good days he saw approaching. He only held/holds 27,000, so hardly over committed. |
Although it's an option exercise so not hugely significant in the scheme of things. |
COO happy to cash in at a low and not wait for any upturn - or downturn! |
Exactly. Where did Tim come from? Tesco.Who set up the Tesco loyalty car? Tim. Where? Tesco! |
It didn't come from Tesco at all. It was an original idea that caught he eye of an investor group with which Leahy had a link. It first breakthrough client was Loblaws in Canada. It is now led by Tim Mason who is a Tesco Alumni. |
The fact that EYE emanated from Tesco in the first instance suggests to me that Tesco is their first taker of this new concept. |
Then that would be a very big win. Over time the existing offering will be replaced by personalised offer. I suspect this would be transformational. |
I'm pretty sure any personalisation for Clubcard will be done as an extension of the EagleAI Personalised Challenges platform. |
Tesco just announced they are trialling personalised offers on top of other club card offers. I wonder if Eye is the underlying technology given the success and engagement of the challenges product that Tesco announced after Christmas. If so then this could be a very significant step in the right direction. |
True although the CFO spent 20% of her salary which isn't insignificant. |
good posts, thanks, i've bought a few today on a few years look forward. If EBITDA is still growing, even if slightly slower, net cash should IMO keep rising, making EV/EBITDA valuation attractive to a bidder at some point.
Small Director buying helps, could have been more meaningful....DYOR |
A few director buys announced after the close. |
Shuffle, pretty much all retailers are suffering from uncertainty at the moment so the extended sales cycles are not a surprise. What is bad is that they didn't flag the reduction in professional services at the AGM.
As hew says, the transition to SaaS is a good thing in the long term as is the aim to achieve 50% revenues from OEMs/channel partners - it was always going to be very hard for a company of their size to have the resources to sell into a global market - but as with all SaaS transitions, it suppresses the numbers in the short-term.
Having said that, ARR is up approx 25% in the last 12 months, SaaS revenues are growing at double digits, they have increasing net cash of 12mm and they're generating FCF.
IMHO, a valuation of 2 x ARR for a global leader growing ARR at double digits is extremely low. I would be very surprised if they haven't been bought out before the end of the year. |
Shuffle, the situation is more complex than just referring to today's news as a profits warning, surely?
Yes, a warning that the numbers assessed under the old (now) business model will be down, but over-riding that IMO is the news of the change to a new SaaS business model, under the wing of a global major. (Just the first one is implied.) A variety of operational (US Sales) strengthening and technical support deals too.
Been very busy at least! Fingers crossed for their success is my view. |
Any thoughts on todays profits warning. I thought they were in a sector where they should be doing well. Is this short term pain for long term gain so should recover ? |
Yes, encouraging:
"Personalised ‘Clubcard Challenges’ offered to 10 million customers across the festive period, contributing to record level of digital engagement." |
Eagle Eye delivering personalisation at scale for Tesco as highlighted in it's Q3/Xmas trading statement. |
I suspect that it is a pre-cursor to a subsequent full RNS when confidentiality allows.
I agree that the key word is 'leading'. A relatively low volume 'leading retailer' is potentially not nearly as valuable as a high volume 'leading retailer'. Think DFS v Tesco.
Recurring transactional volumes, and growth in future revenues from increasing volume, appears key to the EE business model. |
My only concern on this is that it is a REACH statement, as opposed to a full RNS. That means that the revenue implications are not significant or else are included in the current projections. I would like to be wrong in that regard!? |
On recent PI World call, Lucy S-M (CFO) said that Eagle Eye would need (following the turn of the financial year flurry of wins) another £3-4m of wins to hit FY25 consensus revenue forecasts. If this is really a “leading”; retailer, I would guess that this would go a long way to getting to that figure. |
Another contract win - 5 year contract with 'leading UK retailer'. A good seam of recent news on top of a strong set of 2024 YE results. |
Eagle Eye (EYE) Full Year 2024 results presentation - September 2024
Eagle Eye CEO, Tim Mason and CFO, Lucy Sharman-Munday present the Group’s results for the year ended 30 June 2024.
Watch the video here:
Or listen to the podcast here: |
Customisable watchlists with full streaming quotes from leading exchanges, such as LSE, NASDAQ, NYSE, AMEX, Bovespa, BIT and more.
Hot Features
Premium
