IKE - Ike GPS.com

[winner69]

Glenn says outstanding quarter for IKE and it sure was

http://nzx-prod-s7fsd7f98s.s3-websit...672/375047.pdf

[sb9]

Glenn says outstanding quarter for IKE and it sure was

http://nzx-prod-s7fsd7f98s.s3-websit...672/375047.pdf

For sure, some outstanding metrics in there. Have said before and will say again, sp should close to at least 2 bucks based those and outlook commentary. But market being what it is now, can't get higher multiple and will be slow grind upwards...

[Waltzing]

well that some good news in a dismal market.

Winner(n) forcing us to actually pay attention to the numbers....

[percy]

For sure, some outstanding metrics in there. Have said before and will say again, sp should close to at least 2 bucks based those and outlook commentary. But market being what it is now, can't get higher multiple and will be slow grind upwards...

Yes a great deal to like.
Gaining momentum,doing as they said they would do..

[Brain]

Nearly $7m quarter revenue , rapidly growing , market cap $108m. The markets valuation of Ike is totally insane in my view.

[Joshuatree]

Ike continues to be unloved. I am currently underwater (snorkel not scuba). Ike seems to me to show so much promise and if I was not overweight in them I would buy more at these prices. Cash in the bank low market cap growing revenue.

Theres not much that I don’t like about Ike.

I do like Ike.

Ike is what I like.

Sorry about that - channeling Dr Seuss

Love it, hee. I will have a look at IKE.

[winner69]

ANZ cloud companies median valuation is 3.3 times last 12 months revenue.

25th percentile is 1.6 times and 75th percentile is 6.3 times

Drivers of what to apply are Gross Margin % and Revenue Growth - IKE about the middle of pack re Gross Margin % and above average growth. But IKE is a relativity small outfit and this tends to 'discount' the valuation a bit.

So one could say that on what the market values cloud companies these days IKE is worth say 5 to 6 times last 12 months revenues - say $105m to $126m or 66 cents to 80 cents a share

But then multiples have fallen significantly over the last year or so - get back to the glory days maybe 2 bucks

Source my mates at Clare Capital

[sb9]

Hardly any decent volume on offer at current price level. Suspect profit taking will probably happen north of a buck...

[Brain]

ANZ cloud companies median valuation is 3.3 times last 12 months revenue.

25th percentile is 1.6 times and 75th percentile is 6.3 times

Drivers of what to apply are Gross Margin % and Revenue Growth - IKE about the middle of pack re Gross Margin % and above average growth. But IKE is a relativity small outfit and this tends to 'discount' the valuation a bit.

So one could say that on what the market values cloud companies these days IKE is worth say 5 to 6 times last 12 months revenues - say $105m to $126m or 66 cents to 80 cents a share

But then multiples have fallen significantly over the last year or so - get back to the glory days maybe 2 bucks

Source my mates at Clare Capital

If and it is a medium to small size if (in my opinion not a big if) Ike have doubled their revenue in a years time then by the same reasoning you would value them between 132 and 160 cents per share if this was being discussed in July 2023. People claim that markets are forward looking and the market is sometimes and sometimes isn’t . I am forward looking so I view the current price as a bargain.

But as SB9 points out there are essentially no sellers so really I have no clue what the current price is now.

The share market is great. To me it’s a bit like going to the mad hatters tea party with Alice.

[bullfrog]

ANZ cloud companies median valuation is 3.3 times last 12 months revenue.

25th percentile is 1.6 times and 75th percentile is 6.3 times

Drivers of what to apply are Gross Margin % and Revenue Growth - IKE about the middle of pack re Gross Margin % and above average growth. But IKE is a relativity small outfit and this tends to 'discount' the valuation a bit.

So one could say that on what the market values cloud companies these days IKE is worth say 5 to 6 times last 12 months revenues - say $105m to $126m or 66 cents to 80 cents a share

But then multiples have fallen significantly over the last year or so - get back to the glory days maybe 2 bucks

Source my mates at Clare Capital

Good to apply some wonky logic to this...

Revenue $16m March 2022.

Replace Q1 2022 of $2.6m with Q1 2023 of $6.8m gives us rev for last 12 months of $20.2m

Growth figures below from the Annual Report, take into account $13-15m of signed contract backlog which will be realised at their clients discretion.

Av 5yr revenue growth from 2023

CGU - Cash Generating Units
CGU1 Core platform 31%
CGU2. Spike. 5%
CGU3 Structural. 10% ($1.1m revenue FY22)
CGU4 Insight, acquisition Jan 21 75% ($285k revenue FY22)

Tricky to nail overall annual projected growth for next 5 years, but got to be high 30's looking at the above numbers.

75c SP = MC $120 which is 6 times last 12 mths revenue, puts it on the 75th percentile.

Interesting to apply this to other "SAAS" companies.

ERD $115m rev, MC $220m = 2 times 2022 revenue.
PX1 $33m rev, MC $63m = 2 times 2022 revenue.

Valuing a SAAS company is a piece of cake. Tui.