Wandisco Share Discussion Threads

[tickboo] 03/1/2019 11:48

Not sure about their figures as there was only $18m cash at the end of June and although I doubt they've burnt much in H2 thinking they've added to it seems a tad optimistic. I'd expect H1 to be a lot better than last year and hopefully break even given the number of deals they keep saying are under negotiation. We'll see what the trading update says but I hope there is still at least $15m cash. Hopefully the deal RNSs accelerates and the share price follows suit. Any Chartists with a view?

[tickboo] 03/1/2019 11:21

I assume we'll hear more of these large deals in the coming weeks or even days -We look for an acceleration in the rate of deal flow in 2019, while larger strategic contracts remain in negotiation.

[bg23] 03/1/2019 11:19

in regards to the above conversation that was going on about cash/ cash calls/ ebitda/ revenue etc, in the same Edison update highlighted above they are estimating 2018 rev at 24.7m with net cash at 20.5m and with 2019 estimates at 31.8m and 21 respectively.

looks like Edison estimates would avoid the requirement for a cash call on current expectations?

[bg23] 03/1/2019 11:15

Edison have an update out:-




WANdisco’s deal with a major telco provider is the first deployment specifically for a multi-cloud use case. At $565k, the deal is not particularly large, but we believe the potential addressable market for Fusion with this use case is significant. It is also notable that the last three announced deals have each involved different partners – Microsoft, IBM and Amazon respectively – again highlighting the broad applicability of WANdisco’s offering

This deal is significant because it is the first WANdisco has secured for its Multi-Cloud product, specifically for a multi-cloud use case. In this implementation, Fusion will be used to replicate data across different data centres in the Amazon AWS public cloud environment. We believe the addressable opportunity for Fusion in this use case is potentially very large. In implementations like this, Fusion can be deployed as a means of solution for achieving data geo-redundancy in the cloud vendor’s environment.

The agreement was closed in 2018 and is valued at approximately $565,000 covering a three-year period, although the majority of the deal value will be recognised in 2018. There is no trading update with the announcement, but the statement says that the company has built strong momentum in H2. We also highlight that the last three deals that WANdisco has announced have involved three different tier one partners ($3m with a healthcare insurance provider with Microsoft, $700k with a healthcare provider with IBM and this one with Amazon), highlighting the broad applicability of WANdisco’s offering. We look for an acceleration in the rate of deal flow in 2019, while larger strategic contracts remain in negotiation.

[tickboo] 03/1/2019 09:59

I spoke to their FPR lot fti who said only 'material' contracts would be subject to an RNS so the smaller value ones won't be. The automotive one announced was done at the time of the interim RNS. These larger ones are more significant and particularly as new wins - first back up contract, first multi cloud contract and as KtoKP points out it's a direct sell and one that avoids vendor lock in so we should see more of these. I hope to hear of more IBM deals and ideally hear that google have an OEM or Azure like deal with wand.

[knighttokingprawn] 03/1/2019 09:32

FWIW
I think this latest use case is a big deal. It’s the fundamental bullcase for Wand as an independent company. The ability to be able to move data into and out of cloud environments ( multi cloud environments) breaks the lock or tie in that customers experience and greatly increases flexibility of economics for the cloud user. Interesting ( to me ) that this is a direct deal. Other cloud players should take note .. Wand is now increasingly strategically important, “you can get in the cloud with me , but I will allow you to move elsewhere” Zhou really do want to be the first and only cloud provider that can make that offer.

There will be bigger news and better deal flow coming shortly ( imo) ...

[bamboo2] 03/1/2019 09:02

I bought back in first thing this morning.

[owenski] 03/1/2019 08:56

Still, nice little bowl forming on that chart and it's having a stab a 500, needs a bit of volume for conviction.

[owenski] 03/1/2019 08:54

Look at their cash burn and these contracts are small fry.

The latest one is for - "The initial three-year subscription contract is valued at approximately $565,000"

That's only $188k per year.

However, I'm not being negative, just realistic with the numbers, they need a lot of these contract wins and often, they are still on a high valuation compared even to this years expected numbers.

The positives are, these latest contracts arrived in quick succession. If this becomes the tempo then they'll deserve the valuation.

Also, they state the potential for contract expansion.

And, some of these contracts - healthcare, multicloud - are the first in these verticals, so that's encouraging.

No intention of bunging large dosh in this just yet, but seems to be on the right track, early days.

[owenski] 03/1/2019 08:30

"I’m sure they’re winning $100k-$200k contracts too but given what’s projected this year they’ll only announce these larger ones"


What is your evidence for saying that?

[tickboo] 03/1/2019 07:53

Not sure a $3m, $750k and $550k contract are small fry. I'm sure they're winning $100k-$200k contracts too but given what's projected this year they'll only announce these largerOnes and it's their first multi-cloud,Disaster recovery etc. Good news I'd say.

[owenski] 03/1/2019 07:21

Well that's 3 contracts in less than a month (30 days)

Give it another 10 days and see if they pull another. Good to see but they do need a lot of these lower revenue contracts to make cash flow +

[tickboo] 02/1/2019 10:15

How the industry cloud computing market is gaining new momentuminShareBy David H Deans 02 January 2019, 09:09 a.m. commentCategoriesEnterprise, Industry, Infrastructure, ResearchAs more CIOs and CTOs embrace hybrid IT infrastructure models, incorporating multi-cloud solutions, another key trend is gaining momentum. According to the latest worldwide market study by International Data Corporation (IDC), five large industry groups are expected to spend a total of $37.5 billion on industry cloud solutions in 2018.The five industry groups are healthcare, public sector, finance, retail and wholesale, plus the manufacturing sector. Among them, manufacturing grew the most, while retail and wholesale were next to increase their investment.Industry cloud market developmentThe overall market is expected to reach $45.4 billion in 2019 with three of the five groups growing above the market average of 21.5 percent. Healthcare provider and public sector spending are both forecast to grow below the market average, although their 2019 growth rates will be higher than those for 2018."IDC's latest forecast shows that industry cloud growth rates will continue to accelerate over the next three years, which is very unusual for multi-billion-dollar markets," said Frank Gens, senior vice president & chief analyst at IDC. "This growth is being driven by rapidly-digitising industries like healthcare, financial services, and manufacturing, where industry clouds are becoming the cornerstones for next-generation growth and innovation strategies."From a geographic perspective, the United States market will make up close to three-quarters of the overall market in 2018. Most of the other regions will enjoy stronger than average market growth with Japan and China expected to grow the most year over year at 54 percent and 47 percent respectively.These two countries are also forecast to grow at an even higher annual rate in 2019. The other regions, such as U.S., Latin America, and the Middle East & Africa, will also outperform their 2018 growth rates.The healthcare provider market in the U.S. is expected to pass the $10 billion mark in 2018 for the first time while the Western Europe market for healthcare industry cloud is also forecast to hit a landmark in 2018 by crossing the $1 billion mark.Relative to all other regions, Japan can be considered a late adopter to industry cloud deployment. Having said that, the region will fast track to pass the $1 billion mark by 2022. Meanwhile, China is expected to reach that landmark two years earlier.Outlook for industry cloud application growthAccording to the IDC assessment, the industry cloud market continues to accelerate as cloud users demand both vertically-specific capabilities in their solutions and industry expertise from their cloud service providers.To capture this growth, cloud vendors have increasingly shifted their horizontal capabilities to form industry cloud solutions, while industry clouds themselves have created consortiums of collaboration to drive industry innovation.Healthcare has led industries towards this trend, but the finance, manufacturing, and retail industries have internalised the successes and failures from horizontal platforms to form their own paths.IDC believes the industry cloud market is among the largest vertical growth opportunities for both technology vendors and professional services firms through 2025.

[tickboo] 02/1/2019 09:57

Thanks MJ.

[melton john] 02/1/2019 09:53

Doesn't apply to the app, log via browser.

[melton john] 02/1/2019 09:51

Tickboo, at the top right of Advfn trades page there is button Level 3 montage. Press this to see NEX trades

[tickboo] 02/1/2019 09:50

Ah, thanks.

[bamboo2] 02/1/2019 09:30

tickboo, they went through the NEX exchange at 471

NEX:WAND.GB

[tickboo] 02/1/2019 09:00

At what price, not showing at the mo.Let's see if they still have $18m or so cash come year end, if so and given they expect to grow this year and half year I wouldn't expect a cash call. Obviously that requires hitting targets but with more recurring revenue clients whose data needs will only increase 25% growth should be the minimum (as per Edison's note). Let's see what the update brings. Hopefully contract RNSs beforehand too.

[bamboo2] 02/1/2019 08:45

Took profit this morning.
Worried by the potential effect in UK of US market later today.

Still think this looks positive and that the bottom is in. Plan to be back soon.

[tickboo] 02/1/2019 08:19

I'm hoping for some more early year IBM contracts to keep the momentum going. I guess many will wait on the sidelines for the trading update before committing. Here's hoping it's been a good one and cash burn has been reduced massively or rather no H2 cash burn at all.

[tickboo] 02/1/2019 07:09

Fair enough and I agree if they've burnt cash at a similar rate to H1 they'll need a raise but I'd be surprised. I get the feeling they may miss FY18 target but not by much given the deals announced as well as the income to be realised. If they're near the Edison 2019 forecast they won't need a cash call at all the 2020 is even better. Have to see how H2 has gone and make a call from there. From the Edison note - The company reports a growing pipeline although the FY18 result will hinge on the timing of closure of large strategic deals under negotiation. Structurally, we believe the company remains very well placed to benefit from the rapid migration of data to the cloud, with growth supported by partnerships with tier one players such as Microsoft, IBM and Alibaba.Our reverse DCF suggests WANdisco needs to sustain growth of c 25%+ and achieve EBITDA margins of 25%+ to deliver upside. WANdisco's cloud partners are growing revenues at substantially higher levels than this, while successful delivery of the company's IP-based, indirect model should support robust margins.

[qruz] 01/1/2019 18:19

I'll await the cash position on the trading update, but If it's been hit hard in 2H I feel a placing would come at the same time. On your point Jack Beggars can't be choosers, either raise cash or they can't run..

Last year we had a trading update on the 16th Jan. next two weeks will tell.