Wandisco Share Discussion Threads

[tickboo] 24/6/2019 09:03

We've only had 2 contract RNSs this year. I understand they're going after smaller, recurring jobs but they'll need a large number of them to get anywhere near forecasts. $4m in Q1 (a lot better than last time out) means they need some $9m per remaining Q. Hopefully the new product launches means they're generating many projects and revenues but we've heard it all before. Sure DR knows this is last chance saloon as he'll struggle to get another raise away.

[tsmith2] 24/6/2019 08:39

Jam tomorrow here wearing off..

[owenski] 24/6/2019 08:24

Volume is low so far but it's only 22 mins into the day.

It's moved below 500, so not good, I think that article was putting into words a few suspicions that have been evident for a while.

[tickboo] 24/6/2019 08:13

On very little volume. Guess the MMs agree with The Times article!

[jackdaw4243] 24/6/2019 08:07

What caused that.

[tickboo] 23/6/2019 15:14

Can't argue with too much of that.DR is clearly a great salesman being able to persuade IIs to invest and at a premium. I'd imagine that will be the last raise as if they can't use the money to accelerate growth and ensure further raises are not needed I doubt anyone would have the stomach to invest in more jam tomorrow.

[owenski] 23/6/2019 14:06

Hi tickboo, as you know from my previous comments, I have some scepticism towards WAND. Fact is, for a company with so many tier one routes to market and those routes enjoying high growth in the cloud space, it's getting a bit odd that WAND's revenues are so weak.

They're coming across as a group of gifted nerds with an Einstein type product but with very little business to actually support it.

[tickboo] 23/6/2019 13:42

Ouch! I still believe their product is unique and no other provider can move petabytes of data to the cloud whilst zero disruption. We know they moved Daimler to the cloud and it took 6 months whereas the recent RNS suggests this has now been simplified and de-risked. I don't believe other providers are able to ensure the data is live in multi-cloud environments.

[cottoner] 23/6/2019 13:10

For info:

WANdisco could be lost in the cloud

june 23 2019, 12:01am, the sunday times

They are calling it the “Nadellaissance”: Microsoft’s remarkable turnaround under Satya Nadella.

This month, the tech giant became America’s most valuable company at $1 trillion. Nadella, who took over in 2014, made a prescient move by shifting towards cloud computing; it is now a market leader.

WANdisco, a software developer on London’s junior market, is also pivoting towards the cloud. The tech minnow helps businesses move “live” data to cloud providers such as Microsoft Azure and Amazon Web Services without having to switch off their servers.

Investors had high hopes, but WANdisco has fallen short. Since listing in 2012, its value has plunged from a peak of £1bn to £233m as the market did not grow as quickly as expected. It has burnt through cash and held a string of rights issues. Chief executive Dave Richards, who grew up in Sheffield but now lives in Silicon Valley, where he has his own vineyard, was temporarily ousted in 2016 as concerns mounted. He staged a counter-coup weeks later, ejecting the chairman who’d sacked him. The turmoil has tested investors’ patience: the shares have fallen by 59% to 504p over 12 months.

That has not dampened Richards’s resolve. In February, WANdisco raised $17.5m (£13.8m) through a share placing aimed at expanding relationships with America’s cloud giants. At its annual results in April, he said it had made “substantial progress” in “unlocking the significant potential” of cloud computing. He pointed to a “strong pipeline” of deals, and partnerships with the likes of Microsoft Azure, as proof of a brighter future.

That optimism seems overdone. Sales fell 13% to $17m for the year to December, while pre-tax losses swelled from $14m to $19.4m. Things would have looked even bleaker but for a new accounting standard — IFRS 15 — that took effect in January last year. It required WANdisco to book annual subscription sales up front instead of deferring them. Without this, sales would have fallen 38% to $12.2m, with losses at $24m.

There were other red flags. In April, WANdisco failed to disclose “bookings” — a measure of all the money a customer has committed to spend. Short-sellers are betting the shares will fall, with 1.8% of them out on loan.

WANdisco enjoyed a mini renaissance in the first quarter, with sales rising 38% to $4m as it moves from a licence to a subscription-based model. However, the road ahead looks tough. With 40 competitors doing similar things, WANdisco can hardly claim to have the market to itself. Sell.

[tickboo] 11/6/2019 11:04

Edison note which isn't as rampy as usual but another note will be published. Still has a $31.3m FY forecast. As mentioned with $4m in Q1 they need a stonking H2.WANdisco announced the launch of its LiveMigrator product this morning. This solution is designed to help enterprises migrate large (petabyte scale) datasets from on-premise storage into the cloud. WANdisco's unique replication technology allows these datasets to remain consistent throughout this process, eliminating application downtime, greatly accelerating the migration and reducing disruption.WANdisco's solutions are already incorporated in Amazon AWS and Microsoft Azure migration products (Snowball and Databox respectively). This product focuses on the broader market and aims to support enterprises as they migrate from on-premise to cloud storage. At this stage it is too early to assess LiveMigrator's potential commercial impact but the company believes it will broaden its addressable market. WANdisco sees migration as the first step in a three-stage customer journey to cloud storage that also includes hybrid and multi-cloud solutions. We will be examining the opportunities created by this journey for WANdisco in more detail in a forthcoming note.

[bg23] 11/6/2019 11:03

I agree, although I think my timeline may be a little longer, but yes, they do need to increase income and ebit. with their product range, capabilities and industry partners, I fail to see how they cannot - the downside being that if they don't deliver, someone will take them over and we won't be the beneficiaries in the long term.

Edison note out mentioning the new product - although I don't think it really adds anything to the story/argument.

hxxps://www.edisongroup.com/publication/launch-of-data-migration-product/24367

[tickboo] 11/6/2019 09:33

I agree with all of that and still have a sizeable holding here and have added some this morning. They do need to start hitting forecasts as the raise at the end of 17 was to accelerate growth and revenues fell and losses increased. Hopefully Q2 has been a lot better than Q1 and today's announcement will help them hit numbers on the street. The issue of they've always been on the cusp! Time to deliver DR.

[bg23] 11/6/2019 09:18

good news this morning with the product announcement.
from my limited understanding, its now easier, cheaper, more reliant and faster to transfer data to and inter cloud.

just had a look at the co website. its evident that the company products were already gaining users across all manufacturing, service, education and government user types. client numbers and industry applications are just going to go exponential

as I said several months ago, cloud, cloud usage and acceptance is all very early stage from a user perspective. As this gains traction, Wand's product, sales and value are going to fly.

the company talked at its last update of getting to $100m+ annual revenues, I think that's just a starter for a company right at the cutting edge of this space.

[tickboo] 11/6/2019 08:40

This should facilitate more enterprises moving to the cloud and hopefully they can ramp up sales and quickly as it's needed. We know Q4 is generally the big one and if they are to hit forecasts they'll probably need more revenue in H2 than they managed in the FY18. Not impossible though.

[maxim1999] 11/6/2019 08:37

A lot of large contracts on the way.

[tickboo] 11/6/2019 08:05

WAND does not have an issue developing great, innovative products it's generating revenue where it falls short. I think market expectations are some $30m FY19 and Q1 was $4m so a lot to do. Hopefully a lot of momentum H2.

[maxim1999] 11/6/2019 07:59

We are the road to being bid for now. This is the foundation of putting the co on the block. Great RNS!!

[tsmith2] 11/6/2019 07:48

Usual jam tomorrow

[tickboo] 11/6/2019 07:46

Indeed it'll be about how quickly they can generate revenue. Q1 was $4m in revenues and although Q4 is the big one they need to ramp this up significantly.

[redrag1] 11/6/2019 07:23

Ha you beat me to it! Hugely impressive tech...be great if it could be monetised one day !

[owenski] 11/6/2019 07:18

They do very well on product launches and partnerships, shame they dont seem to be earning the money. lol

[jackdaw4243] 07/6/2019 17:32

Not a problem but accounts available but not filed at Companies House.These of course would provide the detail.

Companies House Beta, great service for free.

[tickboo] 28/5/2019 10:32

Could well be the caes