Wandisco Share Discussion Threads

[knighttokingprawn] 25/1/2019 17:40

Jackdaw

Have a lot of sympathy with that view.. just print the numbers and move on. Let the announcements come as they may.. it’s poor advice I think..... it does demonstrate how clunky it is trying to build a business on an OEM partner model .. there is just not enough direct sales reach and they don’t seem to control the partner sell through to any degree..

I suspect the announcement however will change some minds about the future for Wand..
The present is tough however

[tickboo] 25/1/2019 14:38

Really hope this deal closes in the coming weeks, need to build some momentum which is tricky on the back of missed forecasts. We have previously highlighted that FY18's financial outcome would be highly influenced by the timing of closure of a large strategic deal in the pipeline. We understand that negotiations remain very much live and that the scope of the engagement has potentially expanded. However, it is evident that this opportunity has not yet closed and consequently, we reduce our FY18 revenues by $6.0m to $18.7m and increase the EBITDA loss by $5.4m to $5.9m with year-end net cash reduced to $13m from $20m (cash neutral in H2). We leave our FY19 estimates unchanged. We continue to expect an acceleration in the rate of deal flow, and the closure of this large deal could drive upside to our forecasts.

[tickboo] 25/1/2019 11:58

Sorry I meant for H2, they burnt several m in H1. They're predicting they'll have $13m cash left so have burnt some $5m I believe (haven't looked back so might be wrong). I expect they'll announce this chunky deal in the coming weeks with FY18 results. My bet is that it's through Azure. I'm not sure where the CloudEndure AWS acquisition leaves FRR. I assume AWS will use fusion less but I guess they won't let rivals use CloudEndure's tech. Interesting Edison's note was published and the marker deemed it okay. I assume the thinking was they'd miss forecast by a bigger margin. I'm sure the IIs are running out of patience and this year will define DR, make or break.

[jackdaw4243] 25/1/2019 11:52

Are you suggesting with "No Cash burn" income will be greater than expenditure or have I missed something.
Last year KPMG in Leeds had the accounts out in March "Audited"

[tickboo] 25/1/2019 11:08

We have a pretty good idea on what FY18 has delivered which is below forecasts. I'd imagine Edison's revised note won't be too far off. They are waiting on a big strategic deal to close which is seemingly the largest so far. I assume they want to close this and release at the same time as the trading update. The only positive in Edison's note is no cash burn H2. It seems to be mainly about Azure and clearly the NPD with IBM needs do produce as does that channel anyway. The market seemed to have priced in worse results.

[owenski] 24/1/2019 20:12

Indeed, it needs numbers to prove the business case going forward otherwise it's just a company of talented geeks.

[jackdaw4243] 24/1/2019 20:10

Quite

But its the year end.

Investors are not being unreasonable in wanting to know what the bottom line is. In line with expectations , below expectations , above expectations or we have made complete success of spending money that investors have put up with little prospect of a return in the foreseeable future.

If it goes wrong will Richards relinquish control of the purse strings that pays his wages.

[owenski] 24/1/2019 18:13

The videos aren't trading updates or recommendations, they do give a current overview of what the business is doing and the quality of the people involved.

[jackdaw4243] 24/1/2019 16:03

Yes good interview but sponsored by WAND, hardly investigative journalism.

[owenski] 24/1/2019 15:50

Thought I'd collate the three recent interviews published 22nd Jan. 2019

Gives a great overview and depth to WAND's current product and market drivers.

They been posted already but now they're in one post with the direct Youtube lnks.

David Richards WAND CEO interview


Jagane Sundar WAND CTO


Joel Horowitz, formerly IBM now WAND CMO

[tickboo] 24/1/2019 15:21

The majority (58%) of business professionals reported using more than one of the three major cloud service providers Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, according to a Kentik report released on Thursday. Multicloud deployments--where companies use cloud services from multiple different avenues, including private and hybrid clouds--are quickening, putting them on pace with or exceeding hybrid cloud deployments, as our sister site ZDNet noted.The report surveyed more than 300 technicians and executives at the recent AWS user conference in order to gain insight into AWS user adoption rates, multicloud trends, and visibility challenges. Only 33% of respondents said they used hybrid cloud, indicating the use of this technology alone is phasing out, according to the report.SEE: Vendor comparison: Microsoft Azure, Amazon AWS, and Google Cloud (Tech Pro Research)"We've reached the point where cloud providers have proven effective as an alternative to the huge overhead of building, maintaining and upgrading physical infrastructure," Jim Frey, former networking industry analyst and vice president of strategic alliances at Kentik, said in a press release. "But at the same time, the rapid expansion of public cloud use, as well as multicloud, hybrid cloud and cloud-native environments, has created new challenges for visibility and cost control."Some 30% of respondents cited cost management as their biggest cloud management challenge, followed by security at 22%. Additionally, 59% of respondents said they use at least two tools for visibility in their cloud applications, and 35% confirmed using three or more tools for the same purpose, according to the report.Nearly all respondents (97%) said their organization consistently utilizes AWS for cloud management, but 35% of respondents said their organization also uses Azure, with 24% reportedly using both AWS and Google Cloud. This combination of cloud platforms shows just how prevalent and useful multicloud is in the enterprise at this point.To learn more about how multicloud is used in business, check out TechRepublic's multicloud cheat sheet.The big takeaways for tech leaders:More than half (58%) of businesses are using a combination of AWS, Microsoft Azure, and Google Cloud to create a multicloud network. -- Kentik, 2019Visibility is a huge problem for multicloud users, with some 59% of respondents reportedly using at least two tools for better visibility in cloud applications. -- Kentik, 2019

[tickboo] 24/1/2019 11:12

Sorry for all the links but those interested this is the new Marketing appointee from IBM.https://youtu.be/fq5Y4zkaXHU

[tickboo] 23/1/2019 22:21

Yet another link and worth a watch https://bit.ly/2HqTSA0

[tickboo] 23/1/2019 16:56

The complete interview which is worth a watch. https://youtu.be/lKEOaEnWyU8

[tickboo] 23/1/2019 16:24

More sells than buys and we're up albeit the volume it pitiful. Jam tomorrow with the inflection kicking off this year so hopefully they announce this chunky deal ASAP and get the other partners contributing more.

[tickboo] 23/1/2019 15:46

Hopefully wand has learnt a lesson and if anything they'll be a little up on Edison's estimates, probably not knowing wand. Sure they're keen to get this closed ASAP and to announce with results. Main thing is no more raises so they'll have to have a decent H1 which has previously been the where cash is burnt.

[knighttokingprawn] 23/1/2019 15:40

At least the news is out.. so to speak.. edison leading the way on the “miss” stock nudges up so guess we wait to get colur on what the “big deal is “.

[tickboo] 23/1/2019 15:12

Not great but on a positive note at least they're estimating cash neutral H2 and with $13m in cash and this strategic deal they've mentioned a few times hopefully no raise needed. It must be their biggest one yet as they don't tend to bang on about specific deals so much. Hopefully the IBM product launch will contribute and quickly. Given IBM co-engineered it I'm sure they're even more keen to.Although it's very poor for a cloud co to not be growing impressively at least bookings are estimated up for big data and DR again banging on about the pipeline and Azure hopefully we'll get deals RNS'd in the not too distant. I assume the market prices in flat results. The main thing is cash will hopefully not be burnt. Announce the big deal ASAP and launch new products with Microsoft.More commentary from the note- SQL product launch with IBMFollowing on from signing its first Multi-cloud deal, on 8 January WANdisco announced that it has launched a jointly engineered solution with IBM to replicate relational databases. This will enable companies to extend the live data benefits delivered by WANdisco Fusion across a much larger data set. Hence it should extend Fusion's attractiveness and addressable market for the technology and provide a boost to WANdisco's IBM channel (where the royalty percentage was increased to 50% from 30% in mid-2018). We believe that this capability could be extended to other key partners and note Microsoft's strong market share in SQL.FY18 estimates reduced, expect acceleration in FY19We have previously highlighted that FY18's financial outcome would be highly influenced by the timing of closure of a large strategic deal in the pipeline. We understand that negotiations remain very much live and that the scope of the engagement has potentially expanded. However, it is evident that this opportunity has not yet closed and consequently, we reduce our FY18 revenues by $6.0m to $18.7m and increase the EBITDA loss by $5.4m to $5.9m with year-end net cash reduced to $13m from $20m (cash neutral in H2). We leave our FY19 estimates unchanged. We continue to expect an acceleration in the rate of deal flow, and the closure of this large deal could drive upside to our forecasts.Valuation: Strategic progress - platform for growthWe believe that WANdisco remains very well placed strategically in a cloud market that remains one of the largest and fastest growing domains of the global technology landscape. It is taking time to convert this progress into a sustainable inflection in growth, but WANdisco's deepening relationships with key strategic partners give us confidence that this is not far away. Amazon's acquisition of Israeli disaster recovery start-up CloudEndure for a reputed $175m highlights the strategic potential of companies offering solutions to the major cloud providers' problems. Further news on progress with this major deal should affirm WANdisco's strong strategic position as well as giving our FY19 estimates substantial support.

[aishah] 23/1/2019 14:01

Edison note out:

Strategic progress but inflection pushed to FY19

Newsflow thus far in January indicates that good strategic progress continues to be made. In signing its first multi-cloud deal and launching a joint engineered SQL product with IBM, WANdisco opens up two potentially significant opportunities, in cloud to cloud and relational database replication, respectively. We understand that a large strategic deal is still in the pipeline, but given that it was clearly not closed in FY18, we have reduced our FY18 estimates (detailed below). FY19 P&L estimates are unchanged, but have upside potential if the deal comes through.

[tickboo] 23/1/2019 09:44

Definitely H2 loaded as they have been in the past and they should be anyway with momentum, tech budget cycle and new partnerships contributing more work feet under the table. Another short interview posted on Twitter.https://twitter.com/thecube365/status/1087877760452825088?s=12

[knighttokingprawn] 23/1/2019 09:37

I think they hit the numbers but have probably depleted backlog... meaning 2019 backhalf loaded... which is why they are probably waiting agin to give some good news on a deal and or partnership...

[tickboo] 23/1/2019 09:27

Obviously revenue is important as we don't want to burn too much cash H2, if any at all but bookings will drive sentiment too.2017 had $22.5m bookings and H1 '18 was $9m. There was also a big IBM deal announced in H1 so wand needs a really good H2 of 50% increase compared to H1 to match last year's bookings figure which given the tech budget cycle isn't unrealistic. They need to have booked a large number of these smaller deals which should recur and increase in revenues.

[tickboo] 23/1/2019 09:05

I did indeed but wand needs to start closing these deals pronto as jam tomo getting boring. Azure is clearly pushing hard and driving things and hopefully the other partners can follow suit. Weird we haven't heard anything re Alibaba given fusion is embedded in their cloud products. Hopefully we hear from them in the commentary on the update. My bet is that they've missed the revenue figure but I can't see it being by too much given they had $6.7m in H1, $10m to be realised in H2 and the large deals announced are for the most part being realised in H2 2018. So a little over $7m missing and they secured 4 deals worth over $5m. We'll see.

[knighttokingprawn] 23/1/2019 08:56

Tick

Did you catch his reference to pipeline “packed”

[owenski] 23/1/2019 08:30

Comment on IBM's results

"IBM's so-called strategic imperatives, a cluster of businesses including cloud computing and data analytics, are Ms. Rometty's antidote as she refashions the legacy technology vendor to compete against Amazon.com Inc., Microsoft Corp. and Alphabet Inc.'s Google in the cloud. Those businesses grew 5% to $11.5 billion, Mr. Kavanaugh said.

Three years ago, IBM said it expected strategic imperatives, which at the time accounted for only 25% of its revenue, to generate $40 billion in revenue in 2018.

For the year, IBM posted $39.8 billion in revenue for the businesses, up 9%. Mr. Kavanaugh added that those businesses are "consistently 50% of our portfolio overall."