Tmt Investments Share Discussion Threads

[sev22] 11/1/2022 08:49

A comment from a poster on the LSE, maybe my calculation above isn't correct:

'This morning's announcement on the fundraising round for Bolt gives a tasty uplift of $1.29 on TMT's holding (a 56% uplift - Bolt is the 2nd largest holding). This takes the approximate NAV to $10.04 - or 26% below NAV. TMT has enjoyed years of growth and has historically been around 30% above NAV. It's therefore extremely cheap in my opinion.'

[sev22] 11/1/2022 08:21

Today's update gives an increase in the Company's NAV equivalent to approximately US$8.78 per share before any premium is applied.

A 20% premium equates to $10.54 per share and that looks very conservative based on the current portfolio of companies.

[andrbea] 11/1/2022 08:17

Yes, strong update
eg

At the current valuation, the value of TMT's stake in Bolt is worth approximately US$103 million, compared to TMT's original investment of US$0.32 million in 2014.

[sev22] 11/1/2022 07:49

What an impressive update:

[sev22] 14/12/2021 20:14

StudyFree — which connects students with international educational opportunities via a community-driven B2C SaaS model — has raised a $3 million seed investment round led by
amongst others TMT Investments:

[sev22] 14/12/2021 20:08

Educate Online Raises $4M in Funding:



Backers include TMT Investments.

[sev22] 07/12/2021 13:33

This looks very oversold now. Over a 50% uplift is possible following Simon Thompson's last recommendation:

Exploiting market anomalies.
By Simon Thompson, Investors Chronicle, 25th October 2021.

Backblaze IPO supports TMT investment case.

*Hugo stake sold for $3.78m, or 112 per cent premium to book value.
*IPO of cloud storage company Backblaze to raise $100m.

TMT Investments (TMT:920¢), a venture capital company that invests in high-growth, internet-based companies, has announced the disposal of its 3.55 per cent stake in Central American delivery and transportation technology company Hugo and the Nasdaq IPO of its second-largest investment, cloud storage group BackBlaze.

The Hugo exit represents a 112 per cent premium to the $1.78m book value of TMT’s 3.55 per cent stake and comes only 33 months after the company made its initial investment. This means that TMT has realised US$20.1m from exits since its 2021 half-year results on 18 August 2021. Furthermore, the company looks set to reap hefty gains on its 9.97 per cent stake in Backblaze. TMT first invested $5m in July 2012 and 2013, made a partial $2m disposal in 2019, and the holding was last valued at $56m (178¢ a share) at 30 June 2021 after which TMT invested an additional $2m in August.

I expect the IPO to be well received given the strong dynamics supporting explosive growth in digital data creation and consumption. These include artificial intelligence and machine learning, regulatory and compliance requirements (driving retention of data), and cybersecurity threats, such as ransomware, all of which make it imperative for organisations to scale up and secure their digital data storage.

Servicing 485,000 customers across more than 175 countries, Backblaze protects their business data on storage capacity of two trillion megabytes. The group’s revenue increased 25 per cent to $31.5m in the first half of this year, an organic growth rate that looks set to be maintained. Based on analysis of International Data Corporation data, Backblaze’s opportunity in the mid-market for Public Cloud Infrastructure-as-a-Service is forecast to grow to $54.6bn by 2025 (compound annual growth rate of 27 per cent) and for Data-Protection-as-a-Service to $11bn by 2025 (CAGR of 19 per cent).

True, Backblaze is lossmaking, posting a $6m pre-tax loss in the first half of 2021. However, with gross margin of 50 per cent (75 per cent excluding non-cash depreciation and amortisation costs), and net revenue retention rates above 100 per cent (average revenue per customer has risen 30 per cent to $133 in the past four years), then this is a highly scalable operationally geared business. It has also required limited outside investment since being founded in 2007.

At a $1bn potential post-money valuation on listing, the group’s holding in Backblaze would lift my pro-forma net asset value (NAV) per share by 15 per cent to 900¢. I have also taken account of the Hugo realisation, and TMT’s recent $19.3m equity raise, at 850¢. The bottom line is that TMT’s shares could be trading close to spot NAV before the year-end, a valuation that fails to reflect potential for further profitable exits from a portfolio of more than 50 investee companies. BUY.

[sev22] 17/11/2021 21:20

TMT Investments are an investor in this company:

[sev22] 12/11/2021 11:31

Backblaze soars nearly 40% intraday following cloud-storage firm’s IPO (update):

[sev22] 11/11/2021 10:39

Another revaluation uplift:

[sev22] 02/11/2021 20:39

Backblaze said it plans to sell 6.25 million shares at between $15-$17 (£11-£12.50) per share in its forthcoming initial public offering (IPO), according to new paperwork filed with the market regulator.

Shares will trade on the Nasdaq under the "BLZE" ticker.

Founded in 2007, the San Mateo, California-based cloud storage company has almost 500,000 customers worldwide and keeps over 500 billion files available on demand.

Backblaze will have 28.5 million shares outstanding after the IPO, giving it a market capitalisation of around $457m based on a share price of $16 (the midpoint of the price range), according to the paperwork filed with the US Securities and Exchange Commission.

The company will raise $100m from the IPO for general corporate purposes, research and development and capital expenditures.

Channel Island-based venture capital firm TMT Investments will hold 16% of the company's shares after the IPO.

For the six months to 30 June, Backblaze posted a net loss of $6.1m, wider than the loss of $1.3m from the same period in 2020, on revenue which rose to $31.5m from $25.4m a year earlier.

[sev22] 02/11/2021 20:35

More information about the Backblaze IPO: