Wandisco Share Discussion Threads

[mcfly79] 06/9/2017 12:10

The perpetual licences are on a volume limited basis and I think this was one of the most promising sentences in today's results:

'In addition, many of our existing Big Data customers have expressed their intent to significantly scale up their use of WANdisco solutions.'

I owns shares in WAND and it's not the kind of company I usually hold shares in (I normally like current earnings to justify the share price). But I've taken a chance on WAND because it seems to be in a fairly unique position and has a great business model with margins and scalability. Now that we are covering costs on a cash basis additional increases in revenue should virtually all flow through to free cash flow.

Bookings grew by $4.3m and revenue grew by $4.1m over the corresponding period last year and this virtually all fed down to free cash flow (helped a bit by reduced overheads), with cash burn reduced by $4.7m.

If WAND can add $10m of additional annual bookings I see no reason why virtually all of it wouldn't flow through to free cash flow and at that point the valuation would start to look a lot more reasonable.

[tickboo] 06/9/2017 11:58

Croasdalefc - I think it's a combination of both depending on the clients requirements. The chunky bank deal was a one off but all being well should win more from them whereas some of the smaller jobs are on a recurring revenue basis. My understanding anyway.

[croasdalelfc] 06/9/2017 11:51

One concern is that they are changing the revenue model from pure subscription - I.e recurring revenue on renewalTo a perpetual license / royalty which presumably are one off large non recurring fees.

[tickboo] 06/9/2017 11:49

148,000 sell at 6.95 or just over £1m, and it's gone 2 v 1 which is strange, the MMS want shares.

[tickboo] 06/9/2017 11:27

I'm holding and really hope total revenue FY will be above $20m and that we have some contract RNSs soon. Also, with several existing clients testing their backup product I hope we get some news on this soon as should be RNS'd given it's a new product. Confident and holding. No spare cash to add.

[croasdalelfc] 06/9/2017 11:24

Strong pipeline through IBM Big replicate - watch the webcast

[nimbo1] 06/9/2017 11:06

sellers made a mistake here imo. Presentation is excellent I think.

Total addressable market 'pessimistic' is $10 billion by 2020.

[tickboo] 06/9/2017 10:37

Big data still performing as H2 '16 was $4.5m (up from $2.6m H1)so H1 '17 has improved by 64% to $7m so here's hoping H2 '17 can move higher still and have FY big data and cloud to $15m so over 100% higher than FY16 and with the R&D rebate due we should again be EBITDA positive and some. In fact I'd hope we get another decent increase so big data and cloud H2 revenues could be closer to $10m, that really would be something.

[nimbo1] 06/9/2017 10:36

by the way you can sign up for the presentation at 11am here

hxxps://www.wandisco.com/investors/reports-and-presentations

[nimbo1] 06/9/2017 10:14

i put in a buy order at 6.70 i am hoping gets filled

[tickboo] 06/9/2017 09:53

The drop has been well overdone and anyone selling in the 6.70s must be kicking themselves. The interim's didn't exceed expectations but they hit the right note with EDITBA positive, was hoping for some more forward guidance and perhaps the presentation will be more forward looking. A definite hold or add for me.

[toyin] 06/9/2017 09:31

runthejoules

Already jumped!

All the best

[runthejoules] 06/9/2017 09:29

Compared to Monday that looks like a higher low. Those with any cash left who like it, jump in!

[hazl] 06/9/2017 09:24

It was also about US job numbers for me JOULES.
I agree about a hold category toyin.
I confess these are running on their profits now for me.

[djbilywiz] 06/9/2017 09:23

Sold to protect my profit today, will look to get in again when the opportunity presents itself. Like WAND for the future.

[nimbo1] 06/9/2017 09:23

personally surprised to see a fall. am going to continue holding and hope presentation brings it back.

Although as its so illiquid just a bit of selling sends it down so maybe not that surprising. Its very hard to buy any, wondering if it might do an 'iqe' as we move onto the presentation. Hoping anyway!

[toyin] 06/9/2017 09:20

Melton John

I will try!

All the best

[melton john] 06/9/2017 09:07

Hi toying, not diminishing their progress but at the moment from a quick read on my phone this looks like a hold. You hold onto your profits and I hold onto my money. all the best.

[toyin] 06/9/2017 08:47

Melton John

Agreed but the language is clear

"With strong cash collection, a significant increase in bookings(1) and billings in advance of revenue recognition and cost reductions throughout the period, we have moved significantly closer to our goal of becoming cash flow break-even."

It is all moving in the right direction.

All the best

[runthejoules] 06/9/2017 08:37

Sorry OT - What America will do imo with the current situation is use is as an excuse to sell arms to SK & Japan, and try to get leverage over China on trade. Trump has too much to lose, business-wise, from a trade war. IF NK get their H-Bomb on an ICBM what then? Nothing. Regime stable, region stabilised.

Disappointed no update on partners that had WAND on trial though investment case still intact, Hoping for a WAND buyout, even though this is counter-cyclical and international I don't want to hold anything with no divvy through a potential recession or a strengthening pound. Still optimistic though, expecting this to recover slowly especially on any new contracts. In other news, bought £CCT this morning on their Pokemon news & IQE up slightly.

[melton john] 06/9/2017 08:34

If you use ebitda break even as a measure, you have consider what you are excluding. Removing development costs for instance has made a considerable difference to profit and loss and increased intangible assets. Cash flow is the main yardstick for me and that is negative.

[hazl] 06/9/2017 08:22

I suspect this will be a well-known name in years to come.

[hazl] 06/9/2017 08:19

I am certainly a fan.

[hazl] 06/9/2017 08:18

Generally I mean.
WANDISCO is a good firm but things bend according to the wider picture.
We'll see.

[nimbo1] 06/9/2017 08:16

thought results were good - look forward to the presentation. Strong hold from here for me for a few years I think.