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Category Archives: Equity

EV & Revenue Metrics from Listed SaaS Companies

Following a few twitter conversations between our own Mark Clare, technology commentator & investor Ben Kepes, corporate finance associate Sam Stewart and Mindscape CEO JD Trask, Clare Capital charted key EV and Revenue metrics for 50 listed SaaS companies with the results below:

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Pushpay Equity Research

Below is a series of Equity Research pieces that Clare Capital has released on Pushpay as part of its mandate to produce reports on a periodic basis.

Pushpay provides mobile commerce tools that facilitate fast, secure and easy non-point of sale payments between consumers and merchants. Pushpay services three target markets: the Faith Sector; Non-Profit Organisations and Enterprises.

February 19, 2015: Clare Capital – Pushpay Holdings Limited – A SaaS play which makes donating and paying easy

April 28, 2015: Clare Capital – Pushpay Holdings Limited – Research Update

June 10, 2015: Clare Capital – Pushpay Holdings Limited – More than a pure SaaS play

July 16, 2015: Clare Capital – Pushpay Holdings Limited – $1m to $10m ACMR in less than 5 quarters

Tweets from MYOB Prospectus

On the 31st March, MYOB lodged its initial public offering (IPO) prospectus with the Australian Securities and Investments Commission (ASIC) for a listing on the Australian Securities Exchange (ASX).

As MYOB operates in the technology space and given Clare Capital’s past and current work with one of its competitors, Xero (NZX:XRO), the firm sent out a series of tweets regarding some brief analysis on MYOB’s Prospectus.

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Clare Capital Research Report on Pushpay Holdings Limited (NZX:PAY)

Pushpay Holdings Limited (NZX:PAY) – A SaaS play which makes donating and paying easy

Pushpay Holdings Limited (PAY) provides mobile commerce tools facilitating easy payments between consumers and merchants. PAY services three target markets: The Faith Sector; Non-Profit Organisations and Enterprises. Currently, there is considerable focus on the US Faith Sector, with plans to further expand into other jurisdictions.

PAY operates under a Software as a Service (SaaS) business model where the customers/merchants pay a monthly recurring revenue for access and use of the centrally hosted software. This SaaS business model is beneficial to both: The Company; and the customers/merchants. The Company benefits from strong monthly recurring revenue streams and the relative ease of scalability, the customer/merchant benefits from lower up-front costs and by subscribing to a product whose up-keep remains the responsibility of those who developed it.

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Clare Capital advises Heyday on majority sale to WPP/JWT

Clare Capital was the financial adviser to Heyday on their majority sale to WPP / JWT a global advertising and branding company based in the UK.

Heyday (formerly Doubleclique) is a Wellington-based digital design agency.  Heyday’s full range of digital design services includes:

  • Insight – marketing and audience research, digital strategy, proposition design, content strategy and technical architecture.
  • Ideas – conceptual & prototyping, digital content and communications, social media marketing.
  • Design – visual design, UX and interaction design, rich media.
  • Delivery – website development, web application development, search engine optimisation, search engine marketing, mobile application development, project management, copywriting, digital video production.
  • Improvement – analytics and measurement, support, training, performance optimisation.

Clare Capital’s Thoughts on Xero’s Valuation

We produced a Thought Piece on our take on Xero’s valuation at the beginning of October 2013, before the US$150 million capital raise and when the share price was trading at $19.00. Three months later the share price is now at $42.00.

The Executive Summary of the Thought Piece is highlighted in the bullet points below:

  • Xero is a high-growth technology company and not a Ponzi scheme.
  • Losses are fine as long as value is being created.
  • However – from a fundamental valuation perspective Xero is a challenge. First – there are a wide range of future potential growth scenarios. Second – we don’t know when Xero will move to being cash flow positive. From patient for profit and impatient for growth – to the reverse.

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