Imimobile Share Discussion Threads

[chasbas] 19/12/2019 15:41

A lot of selling at 314p, value about £1.2m

[rivaldo] 13/12/2019 12:34

Octopus Investments continue to buy - they went over 5% in November and now they're over 6%, with 4.55m shares:

[ali47fish] 10/12/2019 07:57

here's the link
hxxps://investors.imimobile.com/assets/downloads/imimobile_interim-results-presentation--ended-30-september-2019.pdf

[ali47fish] 09/12/2019 15:10

i checked and can;t find it Gert but have sent an email to get it sent and will post it

[gerihatrick] 04/12/2019 10:01

ali47fish. Could you summarise the presentation or could you tell us is there any way to access it?

[ali47fish] 04/12/2019 08:59

thanks Dav- i have attended an investor presentation and read the last report and it's very positive

[davr0s] 30/11/2019 18:22

If balance sheet is an issue for buyers and sellers you'd see that in the share price - seems on average people are find with it atm

[davr0s] 30/11/2019 18:21

I'm riding the trend and earnings growth look solid so that looks fine - wondered where PS had gone to. Haven't heard from him in months - seems he has disappeared from Twitter (after one too many benders?). Don't think he has had a great 18months in the market either - don't take too much notice of what he thinks

[ali47fish] 30/11/2019 14:05

Paul Scott recent comments very positive except the balnnce sheet with the following comments:
" deliver on its strategic priorities in the second half with current trading in line with expectations.


Balance sheet - this is the deal-breaker for me. I know that IT companies can operate fine with weak balance sheets, but for me there are several issues;

NTAV is negative, at -£44.3m - quite a large deficit, once goodwill & intangibles are written off
Receivables look very high, at £50.0m this year, and £50.6m a year earlier
Current ratio is a bit low, at 0.96 (even though most bank debt is outside of this, in long term creditors)
Bank debt looks a little high (gross long term bank debt is £34.7m)
Deferred consideration of £7.7m would be another cash outflow, if it can't be issued in new shares

It might all turn out to be fine, but personally I look for a more robust balance sheet, because a strong balance sheet provides a cushion in case anything goes wrong. Whereas a stretched balance sheet like this one could cause bigger problems, if something else were to go wrong.

what do people here think?

[maddox] 28/11/2019 00:01

Hi rivaldo,

Thanks for the coverage and write-ups - looking very well positioned in the market with all the key growing messaging channels covered.

Jay Patel CEO comes across very well and articulates the business proposition in a very concise easy to understand way.

Looks set for further growth particularly in the US with their recent excellent acquisition of 3C.

IMO are yet to catch investors attention, if they keep delivering the goods it won't be very long.

Regards, Maddox

[rivaldo] 27/11/2019 14:16

Good interview with the CEO - it all sounds very bullish:

[rivaldo] 26/11/2019 14:41

Nice summary from the respected Techmarketview:



"Tuesday 26 November 2019

IMImobile enjoys strong first half

Cloud communications software provider IMImobile has released a strong set of interim results with revenues up 24% (18% organic) to £83m (H1 18: £67.2m) and adjusted EBITDA up 27% to £9.8m (H1 18: £7.7m).

The company saw organic growth in all regions and business units underpinned by things like increased demand from financial services clients dealing with fraud issues, communications service providers switching to RDS - the SMS upgrade technology, as well as a strong period of new client wins (see - IMImobile delivers Vauxhall win).

Acquisitions remain a key part of company strategy, buying 3CInteractive Corp a private US cloud-based customer engagement platform for £42.8m, as a route to significantly expand its North American presence. Access to the US market should play a major role in the second half of the year and with many customers perceived to be ‘less mature’ in their use of digital comms, offers up significant opportunities to grow.

The company also made a post period end acquisition of Rostrvm, a UK-based contact centre software provider for up to £3.5m, that should allow access to the wider customer services market and capitalise on the huge amount of disruption being felt there at the moment.

Things are looking up for IMImobile – not only does entry into the US offer significant opportunity (and of course challenges!) but customer experience remains one of the largest areas of investment and increasingly central to value propositions throughout client operations, no longer confined solely to the front office."

[rivaldo] 26/11/2019 07:35

Good H1 results, with success and confidence across all regions. The problems in Africa are now well and truly behind them, and "significant" new tenders have been won.

The commentary and outlook are self-explanatory:

"Outlook

The Board has been encouraged by the strong first half of the year having delivered growth in all regions in which the Group operates. We remain excited by the structural growth opportunity in customer communications and, with an experienced team established in key geographic markets, the Board believes that the Group is well positioned to continue to deliver on its strategic priorities in the second half with current trading in line with expectations."

"Jay Patel, Chief Executive Officer of IMImobile PLC, commented:

"89% of companies are now competing primarily on the basis of customer experience(1) , meaning demand for customer communication software has never been greater. Our enterprise-grade offering, and comprehensive set of applications addresses the needs of the largest complex global organisations. With the introduction of new, richer communication channels, we are excited about the possibilities for dramatically improving customer experience."

"We have made strong organic progress throughout the first half of the year and expect the positive momentum to continue through to the year end and beyond. The acquisition of 3Cinteractive provides a solid foundation in the US and we are very confident of success in this market. The outlook for the year is positive and we are trading in line with Board expectations."

[johnwise] 26/11/2019 07:32

26/11/2019 7:01am

RNS Number : 6121U

IMImobile PLC Interim Results


Performance in line with Board expectations, with on-going positive

"We have made strong organic progress throughout the first half of the year and expect the positive momentum to continue through to the year end and beyond. The acquisition of 3Cinteractive provides a solid foundation in the US and we are very confident of success in this market. The outlook for the year is positive and we are trading in line with Board expectations."

[rivaldo] 18/11/2019 10:27

At Mello last week I saw Gresham House Strategic present - they are of course major shareholders in IMO.

They were very positive about IMO, noting the 90% recurring income, but most interestingly were happy to state that Cannacord's comments about R&D/capitalisation are incorrect and overstated.

In particular, Cannacord stated that amortisation is over 10 years - in fact it's 7 years. And since IMIConnect is the future of the company, then its development expenditure should be capitalised and amortised appropriately during commercialisation.

[rivaldo] 11/11/2019 12:23

RNS just out - Octopus Investments continue to buy. They now have over 5% with 3.76m shares (they first declared over 3% in late July with 2.3m shares):

[rivaldo] 07/11/2019 07:25

Interims are out November 26th:



There's been some institutional selling RNS's - Brown Shipley, Canaccord etc - so perhaps there's been some more. IMO's been on a good run (it's almost doubled for me), so top-slicing would be on the cards for some.

I'm quite relaxed. Many would have missed the trading update in the late July acquisition RNS which confirmed continued strong trading and in-line outlook.

EDIT - beat me to it johnwise!

[johnwise] 07/11/2019 07:21

Notice of Results

IMImobile PLC, a cloud communications software and solutions provider, will release its interim results for the six months ended 30 September 2019 on Tuesday, 26 November 2019.

[chasbas] 06/11/2019 11:44

Share price has been drifting down and there is some selling.
IMO raised equity at 310p to buy 3CIntereactive, which completed on 27 Aug and is expected to be imnmediately earnings accretive.
Cannaccord downgraded to Hold on 10 Oct. So maybe somebody knows something we don't??
US markets are strong so ....if anybody knows/suspects anything please share!
SP is below 300p...surely next update should push it back to year high of 340p?
Stockopedia puts shares on a PE of 18.1 for year to March 2020 and 15.4 for March 2021.
What don't we know? I'm clueless

[ali47fish] 01/11/2019 13:20

Riv- did you notice the share price has been falling every day! any comment on that

[rivaldo] 29/10/2019 09:14

More info about Mavenir:



"Mavenir is the industry's only end-to-end, cloud-native network software provider. Focused on accelerating software network transformation and redefining network economics for Communications Service Providers (CSPs) by offering a comprehensive end-to-end product portfolio across every layer of the network infrastructure stack. From 5G application/service layers to packet core and RAN – Mavenir leads the way in evolved, cloud-native networking solutions enabling innovative and secure experiences for end users. Leveraging industry-leading firsts in VoLTE, VoWiFi, Advanced Messaging (RCS), Multi-ID, vEPC, and Virtualized RAN, Mavenir accelerates network transformation for more than 250+ CSP customers in over 130 countries, which serve over 50% of the world’s subscribers."

[rivaldo] 29/10/2019 08:21

Good to see more global expansion of IMO's RCS mobile messaging service:



"IMImobile partners Mavenir to offer next-gen SMS marketing
October 24, 2019

IMImobile, a global communications software provider has partnered with Mavenir, a US-based network software provider, as part of its RCS Business Messaging Ecosystem to accelerate market adoption of this richer, more interactive channel.

IMImobile and Mavenir will work together with global operator mutual customers, integrated RCS enablement technologies and a shared vision to increase adoption of this new channel globally.

RCS is the evolution of mobile messaging; an upgrade to SMS on a global scale that enables businesses to deliver incredibly engaging interactions.

RCS removes the need for consumers to download multiple apps; instead users can directly communicate with businesses from within the messaging app itself, allowing them to engage with virtual assistants to book flights, buy clothes, confirm restaurant reservations and more. The GSMA revealed that RCS has currently been launched by 81 operators worldwide and forecasts an additional 27 operator launches by Q1 2020.

BG Kumar, President Communication Services Group at Mavenir said: “At Mavenir, we embrace disruptive innovative technologies that drive service agility, flexibility and velocity. By working closely with IMImobile we can innovate to meet the growing demand from customers who prefer to communicate with businesses over more interactive channels such as RCS.”

IMImobile’s Enterprise CPaaS (Communications Platform as a Service), IMIconnect, enables businesses to intelligently create, manage and automate end-to-end customer communications across multiple channels. Earlier this year, IMImobile announced the release of its unified RCS messaging API. Through the API and alongside IMIconnect’s low-code tools and visual workflow builder, enterprises can design, build and launch RCS messaging journeys at speed and scale. Mavenir will be leveraging these communications orchestration capabilities as well as IMImobile’s AI software to automate customer journeys.

Jay Patel, Chief Executive of IMImobile, commented: “We are delighted to work together with Mavenir to accelerate market adoption of RCS for leading enterprises worldwide. Our recent acquisition of 3Cinteractive has established the Group as a leading global provider of RCS solutions.’

[chasbas] 24/10/2019 11:21

RSI is very weak. Looks oversold?
Recent US acquisition is earnings accretive.
Cannacord recently downgraded to Hold but stresses that the fundamental story hasn't changed.
Can't be that long to wait for news re H1 (6 months to Sep)

[rivaldo] 11/10/2019 08:37

Canaccord must have a big buyer wanting to get hold of shares :o))

The current year P/E will fall to only 16.9 in a few months. IMO write off almost 40% of R&D, which is actually a lot better than many, and they presumably match the amortisation with the resulting product sales. Even if you were to adjust out all the R&D the rating would be reasonable for, as Canaccord say themselves, "an attractive low-teens organic growth buy and build play on the secular trend of enterprises automating their customer engagement functions".

Especially a company with around 90% recurring income.

[ali47fish] 10/10/2019 22:38

i dont know what to make of cannacord's downbeat assessmment"

Analysts at Canaccord Genuity downgraded their rating on IMImobile from 'buy' to 'hold' on Thursday, stating that the group's elevated development capitalisation understated its price-to-earnings ratio.

In a research report sent to clients, Canaccord pointed out how in its initiation report earlier in 2019, it had argued for a re-rating of the group's shares as it felt IMI's low-teens organic growth, strong CPaaS offering and its blue-chip customer base were "undervalued".

"The shares have begun to re-rate, and on 17x cal. 2020 P/E optically still appear attractive relative to most listed customer engagement enterprise software comps in the 20x - 28x range," said Canaccord.

However, the Canadian broker said its in-depth analysis on R&D capitalisation policies revealed that IMI was the largest beneficiary from capitalising development costs in its coverage.

"In the last three years, the company capitalised 64% of total R&D spend, and due to its long amortisation period (10 yrs), we expect this to inflate key P&L metrics for the next several years," said Canaccord, which also dropped its price target on the group from 380p to 33p.

"Adjusting for CapDev we estimate FY20&21 EPS would be 17% to 25% lower, in turn increasing the shares' cal. 2020 P/E by almost 4 points to 19.5x, the low end of the peer group. In our view, this limits the scope of a re-rating in the next 12 months."

Overall, Canaccord said IMImobile remained "an attractive low-teens organic growth buy and build play on the secular trend of enterprises automating their customer engagement functions".

However, the analysts added that the company's relatively low quality of reported earnings and inherent impact on its valuation made them "move to the sidelines".