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Tech Insights #358
Clare Capital’s naughty or nice list
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 December 2024
Subscribe and see previous reports at clarecapital.co.nz/tech-insights
Overview
In this year’s Christmas Tech Insights report, we present our light-hearted Naughty or Nice list for 2024. On page 2 we have created two quick puzzles, a Strands word search and a crossword. Happy holidays!
NICE
Raglan Roast
(The Terrace)
Great coffee, across from our office (and only $20 for 6 coffees).
Kimchi scones at Astoria & Tipple
Team favourite for the best take on the classic Wellington cheese scone.
Mango
(office dog)
Miss September in the 2025 Wellington Dogs of the Cable Car Calendar.
OpenStar Technologies
Achieving a fusion energy milestone, creating superheated plasma.
11 Woodward Wine Bar
The new cozy wine bar under the ClareCapital office (the old Beaujolais).
Lego Team New Zealand AC75 Yacht
A great addition to Clare Capital’s office Lego collection.
Happy greyhounds
Greyhound racing is to be banned in NZ over the next 20 months.
NAUGHTY
Autopilot
A rough year for the NZ ferries & boats, losing power and being ‘beached az’.
Commerce Commission
Declining AlphaTheta’s acquisition of Serato (with an 8-month delay).
Du Val Group
In statutory management, owing ~$240m to creditors and investors.
SkyCity
5-day casino closure following breaches of the Gambling Act.
Wellington City Council
Crown Observer appointed to address financial and other challenges.
SolarZero
Liquidating only months after receiving debt-funding from NZGIF and others.
CrowdStrike
Causing millions of ‘blue screens of death’ globally following a faulty update.
list
CLARE CAPITAL’S CHRISTMAS NAUGHTY or NICE
Answers | Strands word search: Acquisition, Finance, Deal, Value, Tech, Advise, Transaction | Mini: 1. SCHED, 6. ALIVE, 7. TAKEN, 8. ARENT, 9. NESTS, 1. SATAN, 2. CLARE, 3. HIKES, 4. EVENT, 5. DENTS
Tech Insights #358
Clare Capital’s naughty or nice list
Page 2 of 2
Disclaimer This report has been informed by correspondence with the North Pole. Clare Capital assumes no responsibility over the imaginative nature of the content, as well
as allocations on the ‘naughty or nice’ list. Clare Capital is not an Authorised Financial Advisor.
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 December 2024
Subscribe and see previous reports at clarecapital.co.nz/tech-insights
Strands word search
Find words hidden within the grid below. Connect letters vertically, horizontally and diagonally to form words related to the theme. Every letter in the grid is in a word only once and words do not appear in a straight line.
T
I
O
N
F
I
I
S
C
A
N
N
N
I
U
Q
C
A
L
O
I
E
D
E
U
A
V
T
A
T
E
A
H
C
L
R
V
D
C
A
S
A
I
S
E
E
T
N
M&A
TODAY’S THEME
Mini crossword
1
2
3
4
5
6
7
8
9
DOWN
1
Figure associated with evil
2
The name on the door
3
Long walks in nature
4
Cinema chain
5
Damage to a car's exterior
ACROSS
1
Plan or timetable (abbreviated)
6
Full of life, not dead
7
No longer available
8
Opposite of are (contraction)
9
Homes built by birds
Tech Insights #357
Tech stocks 2024 wrap up
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
9 December 2024
Subscribe and see previous reports at clarecapital.co.nz/tech-insights
Overview
With the year coming to a close this Tech Insights report wraps up the performance, size and valuations for tech stocks local and abroad. NZX listed Gentrack Group doubled its share price in 2024 with its 1H24 and FY24 result announcements contributing big one-off share price movements. Large US tech companies played leapfrog for the title of world’s most valuable business with Apple (currently the largest), Nvidia and Microsoft all spending time at number one.
Largest NZX tech stocks: indexed share price
Largest NZX tech stocks EV (bar) and revenue multiple (dot)
Largest ASX tech stocks: indexed share price
Largest ASX tech stocks EV (bar) and revenue multiple (dot)
-
50
100
150
200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Gentrack
Vista
Serko
EROAD
-
2x
4x
6x
8x
-
0.5
1.0
1.5
2.0
Gentrack
Vista
Serko
EROAD
EV/Revenue multiple
Enterprise Value (NZ $b)
-
25
50
75
100
125
150
175
200
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Wisetech
REA
Xero
Computershare
-
10x
20x
30x
40x
50x
-
10
20
30
40
50
EV/Revenue multiple
Enterprise Value (AU $b)
Tech Insights #357
Tech stocks 2024 wrap up
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
9 December 2024
Largest global tech stocks: indexed share price
Largest global tech stocks EV (bar) and revenue multiple (dot)
Select global SaaS stocks: indexed share price
Select global SaaS stocks EV (bar) and revenue multiple (dot)
-
50
100
150
200
250
300
350
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Apple
Nvidia
Microsoft
Amazon
-
5x
10x
15x
20x
25x
30x
35x
40x
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Apple
Nvidia
Microsoft
Amazon
EV/Revenue multiple
Enterprise Value (US $b)
-
25
50
75
100
125
150
175
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Salesforce
Adobe
Shopify
Atlassian
-
5x
10x
15x
20x
-
100
200
300
400
Salesforce
Adobe
Shopify
Atlassian
EV/Revenue multiple
Enterprise Value (US $b)
Tech Insights #356
Cross-border M&A
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
2 December 2024
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Overview
This report looks at three sets of transactions over the last 10 years; acquisitions of private companies in New Zealand (page 1), acquisitions of private tech companies (page 1), and acquisitions of public companies (page 2). The insights focus on the origin of the buyers in these deals and how long deals take to complete. Note: tech is defined as ‘packaged software’ in FactSet.
-
10%
20%
30%
NZ
AUS
USA
UK
Other
% of deals
Location of buyer
-
20
40
60
80
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
# of deals
Year
Overseas
Local
Private New Zealand deals: overseas buyer vs local buyer
Private New Zealand deals (all deals): location of buyer
Private tech deals: overseas buyer vs local buyer
Private New Zealand tech deals: location of buyer
-
10%
20%
30%
40%
50%
60%
70%
80%
NZ
AUS
USA
UK
Overseas buyer %
Location of acquired companies
Most acquisitions of private NZ companies are from overseas buyers
Nearly 80% of acquisitions of private NZ tech companies are by overseas buyers
Nearly 30% of acquisitions of private NZ tech companies are by US buyers
-
10%
20%
30%
40%
NZ
AUS
USA
UK
Other
% of deals
Location of buyer
Tech Insights #356
Cross-border M&A
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
2 December 2024
-
500
1,000
1,500
2,000
2,500
USA
AUS
UK
NZ
# of deals
Location of acquired companies
Complete
Withdrawn
Public-to-private deals: overseas buyer participation
Public-to-private deals: split of completed and withdrawn deals
-
10%
20%
30%
40%
50%
60%
70%
USA
AUS
UK
NZ
Overseas buyer
Location of acquired companies
Public-to-private deals: days from announcement to completion
22
14
Overseas buyer:
-
20
40
60
80
100
120
140
160
USA
AUS
UK
NZ
Average days
Location of acquired companies
Yes
No
Comments
Top left: Almost 70% of acquirers of listed NZ companies are from overseas.
Top right: 85% of acquisitions of public companies that are announced in the US complete, 61% complete in New Zealand
Bottom right: On average, having an overseas buyer increases the time from announcement to completion by 47 days in New Zealand public-to-private deals. This is likely due in part to OIO requirements.
-
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
AUM (NZD $t)
SPY
IVV
VOO
Combined % S&P 500 (RHS)
Tech Insights #355
Exchange Traded Funds (ETFs)
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
25 November 2024
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Overview
This Tech Insights report examines the growing global ETF market. ETF offerings have grown in both popularity and range, with more investors adopting ETFs within their portfolios. Page one highlights ETFs tracking the world’s most popular index (the S&P 500) and a range of notable ETF providers. Page two highlights the breakdown of global offerings as well as ETFs from NZ’s largest ETF provider Smart (formerly Smartshares).
Major S&P 500 ETFs
Notable ETF providers
State Street’s S&P 500 index ETF SPY remains the largest ETF in the world by assets under management (AUM) since its launch back in 1993. Vanguard’s VOO and BlackRock’s IVV have emerged as popular alternatives with more competitive expense ratios than SPY.
Provider
AUM of 10 largest ETFs (NZD $b)
First ETF launched
Significant ETF
Ticker/index
Fee
Exchange
3,285
2001
VOO
S&P 500
0.03%
NYSE
2,380
1996
IVV
S&P 500
0.03%
NYSE
1,818
1993
SPY
S&P 500
0.09%
NYSE
816
1999
QQQ
NASDAQ 100
0.20%
NASDAQ
31
2010
A200
ASX 200
0.04%
ASX
5
1996
NZG
NZX 50
0.20%
NZX
ETF providers typically create a mix of low-cost index tracking funds with a mix of alternative or more specialised options, such as Blackrock’s BTC (bitcoin) ETF.
The NZD $3t invested in VOO + SPY + IVV now constitutes 3.5% of the S&P 500’s NZD $87t market cap.
-
0.2
0.4
0.6
0.8
1.0
1.2
SPY
VOO
IVV
VTI
QQQ
VUG
VEA
VTV
IEFA
AGG
BND
IWF
IJH
IJR
VIG
VWO
VGT
IEMG
IWM
VXUS
VO
GLD
XLK
RSP
SCHD
AUM (NZD $t)
-
0.2
0.4
0.6
0.8
NZG
USF
GGB
FNZ
NZC
USG
NZB
TWH
NGB
ESG
AUS
AGG
OZY
MZY
TWF
GBF
EMF
MDZ
USH
TNZ
NPF
AUE
EMG
EUF
APA
AUM (NZD $b)
Tech Insights #355
Exchange Traded Funds (ETFs)
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet and other public sources. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
25 November 2024
Top 25 Global ETFs by AUM
Top 100 Global ETFs asset class breakdown
The global ETF market is highly concentrated with 57% of the AUM of the top 25 held by just 5 names: SPY, IVV, VOO, VTI (global stock market tracker) and QQQ.
Top 100 Global ETFs index & strategy breakdown
The most popular ETFs are broad market index trackers. More specific ETFs that offer satellite strategies are growing in popularity to supplement core portfolios. Value, growth, and dividend focused are the most common strategies for equities and target duration or credit rating are the most popular for fixed income.
Top 25 Smart ETFs by AUM
NZX owned Smart (formerly Smartshares) provide 44 NZX listed ETFs across various equity, fixed income, gold, and bitcoin exposures.
Equities
Fixed income
Gold
Strategy
Market index
Asset Class
Approach
-
20%
40%
60%
80%
100%
# of ETFs
AUM
Strategy
Index
-
20%
40%
60%
80%
100%
# of ETFs
AUM
Derivatives
Bitcoin
Gold
Fixed income
Equities
S&P 500
NZX 50
Global government bonds
243%
-
40%
80%
120%
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
-2yr
-1yr
LTM
Revenuegrowth
Free CashFlow margin
Magnificent 7 deal activity* (last 10 years)
Tech Insights #354
Magnificent 7 (and Broadcom)
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 November 2024
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Overview
The seven largest listed tech stocks globally (NVIDIA, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla) have been coined the Magnificent 7. Broadcom has been growing rapidly, nearly doubling its market capitalisation over the last year to USD $770bn and is currently the 8th largest company listed on the NASDAQ. This Tech Insights report spotlights these companies and their performance over time.
Annual revenue split by geography
Rule of 40
The Rule of 40 metric combines annual revenue growth and Free Cash Flow (FCF) margin. While the metric is primarily used to evaluate SaaS companies, in this context it also serves as a useful benchmark to assess performance. NVIDIA and Broadcom are the only two companies that achieved the Rule of 40 benchmark every year over the last three years. We note there are different variations of the Rule of 40, including using EBIT or EBITDA instead of FCF as a measure of profitability.
*Includes acquisitions, mergers and majority stakes by parent and subsidiaries.
-
20%
40%
60%
80%
100%
Amazon
Microsoft
Alphabet
Tesla
NVIDIA
Meta
Apple
Broadcom
United States
Rest of World
120%+
-
20
40
60
'15
'16
'17
'18
'19
'20
'21
'22
'23
'24
Deal count
Broadcom
Tesla
Meta
Alphabet
Amazon
Microsoft
Apple
NVIDIA
-
5
10
15
20
Jan 16
Sep 16
May 17
Jan 18
Sep 18
May 19
Jan 20
Sep 20
May 21
Jan 22
Sep 22
May 23
Jan 24
Sep 24
Market capitalisation (USD $tn)
Broadcom
Tesla
Meta
Alphabet
Amazon
Microsoft
Apple
NVIDIA
Tech Insights #354
Magnificent 7 (and Broadcom)
Page 2 of 2
Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 November 2024
Largest listed tech companies - key metrics (USD $b)
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Market capitalisation (USD $tn)
Company
Description
Market capitalisation
Enterprise value
LTM
revenue
LTM rev growth
FCF margin
EBITDA margin
EV / Revenue
EV / EBITDA
LTM share price Δ
NVIDIA
Semiconductors
3,483
3,458
96
195%
49%
64%
35.9x
56.5x
187%
Apple
Consumer electronics
3,401
3,455
391
2%
28%
34%
8.8x
25.7x
19%
Microsoft
Cloud services and computer software
3,085
3,104
254
16%
29%
55%
12.2x
22.4x
10%
Amazon
Cloud services and e-commerce
2,130
2,189
620
12%
7%
18%
3.5x
19.5x
42%
Alphabet
Cloud services
2,119
2,048
340
15%
16%
36%
6.0x
17.0x
26%
Meta
Social media platforms
1,398
1,377
156
23%
33%
50%
8.8x
17.6x
66%
Tesla
Electric vehicles
1,030
1,009
97
1%
4%
14%
10.4x
75.6x
37%
Broadcom
Semiconductors
770
830
47
32%
40%
49%
17.7x
36.2x
72%
Median
2,125
2,118
205
15%
28%
42%
9.6x
24.0x
40%
The combined market capitalisation of the Magnificent 7 and Broadcom currently accounts for 35% of the S&P 500 Index.
Tech Insights #353
Tech M&A deal structures
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 November 2024
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Overview
This Tech Insights report covers the structure of technology M&A deals over the last 10 years as available from FactSet. Page one highlights regional differences in structure and acquisition behaviour, illustrating how deal activity has progressed through time. Page two highlights how some of the world’s most acquisitive tech companies structure their M&A deals. Note: this report only looks at acquisitions of private companies.
Average tech deal structure by acquirer region
Transaction value (% of acquirer’s EV)
-
5%
10%
15%
20%
25%
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
25th percentile
Median
75th percentile
-
20%
40%
60%
80%
100%
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
Cash up front
Stock up front
Other
The median transaction value in AU/NZ was 5.9% of the acquirer’s EV.
Number of tech M&A deals by year
Transaction size (US $m)
-
200
400
600
800
1,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
North America
AU/NZ
Europe
UK
Asia
Other
-
10
20
30
40
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
25th percentile
Median
75th percentile
2024
as at 15 Oct
>89
49
-
20%
40%
60%
80%
100%
Monchilla
Hubdoc
Instafile
Waddle Loans
Planday
Tickstar
Locate Inventory
Cash up front
Stock up front
Other
Tech Insights #353
Tech M&A deal structures
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 November 2024
Selected Lightspeed deal structures (transaction size, US $m)
Selected Xero deal structures (transaction size, US $m)
-
20%
40%
60%
80%
100%
Chronogolf
GastroFix
ShopKeep
Upserve
Vend
Ecwid
NuORDER
Cash up front
Stock up front
Other
$12m
$120m
$500m
$421m
$354m
$643m
$386m
-
20%
40%
60%
80%
100%
IBM (12 deals)
Accenture (9)
Oracle (8)
Spotify (6)
Microsoft (19)
Tech Mahindra (19)
Atlassian (6)
Alphabet (15)
Citadel Group (6)
BigTinCan (12)
ReadyTech (8)
RPMGlobal (6)
Altium (7)
Salesforce (11)
Wisetech (27)
ELMO (7)
Lightspeed (7)
Xero (7)
Xero’s average deal structure contains 30% cash up front.
Average % of transaction value in up front cash
AU/NZ acquirers
Large global acquirers
$7.2m
$70m
$6.8m
$57m
$221m
$18m
$14m
GetThere acquisition (announced 28 Oct 2024)
GetThere is a corporate travel management platform in North America and unlocks growth in this market for Serko. The acquisition includes the platform, team and customer base.
The announced 5-year Sabre partnership involves Sabre continuing to sell GetThere and also co-sell Zeno (Serko’s platform), utilising Sabre's sales team.
NZD $m
Upfront cash
17
Deferred (cash or shares)
3
Implied NTM revenue (NZD $m)
18
Base purchase price
20
→
Implied NTM revenue multiple
1.1x
Performance payments*
21
Total consideration
41
*Performance payments related to Sabre co-selling GetThere and Zeno over the next two-year period.
Tech Insights #352
Serko’s flight plan
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
4 November 2024
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Overview
This Tech Insights report looks at the growth Serko has achieved with the existing Booking.com partnership and at Serko’s announced acquisition of Sabre’s GetThere platform. Serko recently announced a second major partnership (with Sabre) and shared an aspirational revenue target of NZD $250m by FY30. The second page looks at the performance of the listed travel tech space since 2019 (before, during and after COVID-19).
EV and revenue multiple over time
Serko annual revenue by segment (NZD $m)
The ‘Booking.com for Business‘ partnership (supplier commissions) has been a driver of Serko’s revenue growth over the last two years (mainly in Europe). Serko has had limited traction expanding into the North American market over the last few years.
Serko EBITDA
4.6x
-
20x
40x
60x
80x
-
250
500
750
1,000
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
EV / Revenue (LTM)
EV (NZD $m)
Enterprise Value (EV)
EV / Revenue multiple (LTM)
-
20
40
60
80
FY19
FY20
FY21
FY22
FY23
FY24
March year end
Services and other
Supplier commissions(Booking.com)
Expense platform
Travel platform booking
1
(7)
(27)
(29)
(23)
(4)
(400%)
(300%)
(200%)
(100%)
-
100%
(40)
(30)
(20)
(10)
-
10
FY19
FY20
FY21
FY22
FY23
FY24
EBITDA %
EBITDA (NZD $m)
March year end
EBITDA
EBITDA margin
-
10
20
30
40
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
Jun 24
Booking Holdings
Expedia Group
Airbnb
Tech Insights #352
Serko’s flight plan
Page 2 of 2
Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
4 November 2024
Selected listed travel tech companies (NZD $m)
Subscribe and see previous reports at clarecapital.co.nz/tech-insights
Listed travel tech industry – total Enterprise Value (NZD $b)
Company
Country
Description
Enterprise Value
LTM
revenue
LTM revenue growth
EBITDA margin %
EV / Revenue
EV / EBITDA
Booking Holdings
United States
Flight and accommodation booking platform
261,535
37,926
13%
31%
6.9x
22.3x
Airbnb
United States
Accommodation booking platform
128,442
17,329
17%
16%
7.4x
47.0x
Trip.com Group
China
Flight and accommodation booking platform
63,244
11,126
47%
28%
5.7x
20.0x
Expedia Group
United States
Flight and accommodation booking platform
33,197
21,879
10%
18%
1.5x
8.5x
MakeMyTrip
India
Flight and accommodation booking platform
17,965
1,452
30%
14%
12.4x
91.0x
Sabre
United States
Global distribution system (air bookings)
8,948
4,939
6%
13%
1.8x
13.8x
TripAdvisor
United States
Reviews / guides and booking platform
3,306
2,994
10%
13%
1.1x
8.7x
eDreams
Spain
Flight and accommodation booking platform
1,953
1,151
13%
11%
1.7x
14.8x
SiteMinder
Australia
Booking application software
1,913
206
25%
0%
9.3x
nm
WEB Travel Group
Australia
Flight and accommodation booking platform
1,314
508
27%
40%
2.6x
6.5x
Serko
New Zealand
Corporate travel platform
344
74
17%
(4%)
4.6x
nm
Median
8,948
2,994
17%
14%
4.6x
14.8x
Annual revenue of large travel tech platforms (NZD $b)
-
100
200
300
400
500
600
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Trip.com Group
Airbnb
Other (see below)
Expedia Group
Booking Holdings
2.3x
1.3x
-
1.0x
2.0x
3.0x
4.0x
0.0x
1.0x
Assumed revenue multiple for hardware
Tech Insights #351
Peloton’s Uphill Battle
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Mergers & acquisitionsCorporate finance advisoryCapital raising
21 October 2024
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Overview
Peloton is a global connected fitness company that provides an at-home fitness platform for live and on-demand fitness classes. While Peloton saw a surge in demand during the pandemic as consumers sought gym alternatives, the company’s growth has stalled as gyms have reopened, falling from a share price peak of USD $167 to $6 today. Peloton primarily generates revenue from subscriptions to its platform (software) and the sale of its exercise equipment (hardware). All figures are in USD.
Hardware subscribers* (millions) and monthly churn (%)
Hardware vs software quarterly revenue (USD $m)
Margin by revenue type (%)
Implied software revenue multiple as at June 2024
(100%)
(50%)
-
50%
100%
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Softwaregrossmargin
Hardwaregrossmargin
EBITDAmargin
-
0.5%
1.0%
1.5%
2.0%
-
0.8
1.6
2.4
3.2
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
*Members who have purchased hardware and have a platform subscription.
-
300
600
900
1,200
1,500
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Hardware
Software
30% software
67% software
If no value is associated with hardware revenue (0.0x), the implied multiple for the software revenue would be 2.3x.
Downturn due to
inventory write down, increased logistic expenses, and treadmill product recall.
Tech Insights #351
Peloton’s Uphill Battle
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Mergers & acquisitionsCorporate finance advisoryCapital raising
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Selected companies in various fitness industries as at 18 October 2024 (USD $m)
Indexed share price – Peloton vs traditional push-bike makers
LTM Revenue growth and EBITDA margin
Location
\
Enterprise value
LTM revenue
Gross margin
Revenue growth
EBITDA margin
EV /
LTM Revenue
EV /
LTM EBITDA
Peloton
US
3,423
2,701
45%
(4%)
(11%)
1.3x
NM
Health and fitness
Life Time Group
US
7,559
2,517
47%
18%
30%
3.0x
10.2x
Planet Fitness
US
P
8,660
1,112
82%
7%
41%
7.8x
19.1x
Xponential Fitness
US
1,071
327
77%
15%
31%
3.3x
10.5x
Viva Leisure
Australia
99
106
62%
12%
47%
0.9x
2.0x
Tech
Garmin
US
29,075
5,648
57%
15%
25%
5.1x
20.3x
Daktronics
US
654
812
27%
(0%)
11%
0.8x
7.5x
GoPro
US
184
931
32%
(11%)
(10%)
0.2x
NM
Equipment
Shimano
Japan
10,636
2,869
38%
(33%)
20%
3.7x
18.5x
Giant
Taiwan
2,523
2,249
23%
(23%)
9%
1.1x
13.2x
Technogym
Italy
1,969
907
40%
14%
18%
2.2x
12.4x
Johnson Health Tech
Taiwan
1,792
1,279
49%
12%
8%
1.4x
16.9x
Median
2,246
1,195
46%
10%
19%
1.8x
12.8x
Peloton
Life Time Group
Planet Fitness
Xponential Fitness
Viva Leisure
Garmin
Daktronics
GoPro
Shimano
Giant
Technogym
Johnson Health Tech
(20%)
(10%)
-
10%
20%
30%
40%
50%
(20%)
(10%)
-
10%
20%
30%
EBITDA margin
Revenue growth
(>20%)
-
1
2
3
4
5
6
7
Oct 19
Oct 20
Oct 21
Oct 22
Oct 23
Oct 24
Peloton
Shimano
Giant Manufacturing
Tech Insights #350
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-
5x
10x
15x
20x
25x
30x
-
10
20
30
40
50
60
H2 '14
H1 '15
H2 '15
H1 '16
H2 '16
H1 '17
H2 '17
H1 '18
H2 '18
H1 '19
H2 '19
H1 '20
H2 '20
H1 '21
H2 '21
H1 '22
H2 '22
H1 '23
H2 '23
H1 '24
Revenue multiple
Total enterprise value (USD $b)
Overview
This Tech Insights report presents acquisitions by Private Equity firms of publicly listed Technology* companies over the past ten years. On the first page we present the total value of these transactions and the weighted EV/revenue multiple. The second page presents transaction revenue multiples of Thoma Bravo and Vista Equity Partners (the two most acquisitive firms), as well as selected notable transactions through the ten-year period.
Count
H2 '14
H1 '15
H2 '15
H1 '16
H2 '16
H1 '17
H2 '17
H1 '18
H2 '18
H1 '19
H2 '19
H1 '20
H2 '20
H1 '21
H2 '21
H1 '22
H2 '22
H1 '23
H2 '23
H1 '24
IT
2
2
3
1
2
1
4
1
3
2
2
-
4
3
-
3
2
2
1
2
PS
7
2
6
6
6
9
3
5
6
5
7
3
7
8
10
13
10
9
11
12
Private Equity Technology transactions
*Technology companies are represented by Information Technology Services (IT) and Packaged Software (PS) companies as categorised by FactSet.
The largest transaction across the ten-year period was Vista Equity Partners acquisition of Citrix Systems for $14.6b in Jan 22
Tech Insights #350
Private Equity buyouts
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers.
Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Date
Country
Target
Description
Primary acquirer
Enterprise value
Revenue
Enterprise value / revenue
Oct 15
US
SolarWinds
Network management software and monitoring tools
Thoma Bravo
4,217
486
8.7x
Feb 16
NZ
Diligent Corp
SaaS governance platform
Insight Partners
361
99
3.6x
Dec 19
US
LogMeIn
Remote access software
Francisco Partners
4,409
990
4.5x
Jun 21
US
Cloudera
Data management and analytics solution
KKR
4,893
869
5.6x
Nov 21
US
McAfee Corp
Computer software company
Advent International
13,592
2,906
4.7x
Mar 22
US
Anaplan
Business planning and analysis platform
Thoma Bravo
9,348
592
15.8x
May 22
NZ
Pushpay
Donor management system
BGH Capital
1,097
203
5.4x
Aug 22
Australia
Nitro Software
Document management software
Potentia Capital
354
59
6.0x
Jan 23
US
Duck Creek
P&C insurance software
Vista Equity Partners
2,282
303
7.5x
Dec 23
US
Alteryx
Data analytics and visualisation platform
Insight Partners
4,178
970
4.3x
Selected notable Private Equity acquisitions since 2014 (USD $m)
Thoma Bravo last 20 technology transactions EV/revenue
-
5x
10x
15x
20x
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Vista Equity Partners last 10 technology transactions EV/revenue
-
2x
4x
6x
8x
10x
12x
1
2
3
4
5
6
7
8
9
10
Median revenue multiple 5.0x
Median revenue multiple 7.5x
20x+
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Sep 19
Mar 20
Sep 20
Mar 21
Sep 21
Mar 22
Sep 22
Mar 23
Sep 23
Mar 24
Sep 24
Tech Insights #349
Cloud Index as at 30 September 2024
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. As at 30 September 2024, the US Cloud Index is down 3% from the previous quarter to 5.8x EV / NTM revenue. It continues to move between a 5.0x and 7.5x multiple range. The ANZ Cloud Index recovered late in the quarter to stay flat at 6.9x, above the US Cloud Index. Over the last 12 months, the ANZ Cloud Index has increased by 19% versus a 2% decrease for the US Cloud Index. It is moving closer to its five-year average, while the US Cloud Index remains well below.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
7.5x
ANZ Cloud Index
Average
12MMA
Sep 24
6.9x
6.3x
Jun 24
6.9x
6.2x
Change
0%
0%
Sep 23
5.8x
5.6x
Change
19%
12%
US Cloud Index
Average
12MMA
Sep 24
5.8x
6.2x
Jun 24
6.0x
6.3x
Change
(3%)
(3%)
Sep 23
5.9x
5.9x
Change
(2%)
4%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (18 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (87 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.
11.0x
6.9x
5.8x
Key:
US
ANZ
Average
12MMA
5yr avg
-
5.0x
10.0x
15.0x
20.0x
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Sep 24
-
10.0x
20.0x
30.0x
40.0x
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Sep 24
75th percentile
Median
25th percentile
Tech Insights #349
Cloud Index as at 30 September 2024
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
7.6x
5.0x
2.8x
8.9x
4.4x
2.8x
US cloud companies
25th
75th
30 Sep 2024
Average
percentile
Median
percentile
EV (NZD $m)
33,775
2,708
8,574
23,502
EV / NTM rev
5.8x
2.8x
5.0x
7.6x
Revenue growth (NTM)
11%
5%
11%
20%
EV / LTM rev
7.0x
3.2x
5.8x
9.9x
Revenue growth (LTM)
18%
11%
17%
25%
Operating margin
(6%)
(17%)
(3%)
7%
ANZ cloud companies
25th
75th
30 Sep 2024
Average
percentile
Median
percentile
EV (NZD $m)
5,641
574
1,179
2,773
EV / NTM rev
6.9x
2.8x
4.4x
8.9x
Revenue growth (NTM)
12%
0%
10%
19%
EV / LTM rev
8.7x
3.5x
5.4x
10.3x
Revenue growth (LTM)
18%
7%
17%
27%
Operating margin
18%
0%
21%
33%
Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.
EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months.
Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Paypal Revolut Payoneer
Comment
+52.4% consumer revenue CAGR
+54.5% business revenue CAGR
-
Gross margin increase from 62.1% to 71.1%
-
PBT margin increase from 5.7% to 31.3%
481
611
445
485
237
815
-
400
800
1,200
1,600
Profit before tax (PBT)
Other income / (expense)
Cost of sales**
Interest income
Business revenue
Consumer revenue
10
100
68
-
27
151
-
400
800
1,200
1,600
Profit before tax (PBT)
Other income / (expense)
Cost of sales**
Interest income
Business revenue
Consumer revenue
Tech Insights #348
Wise (formerly TransferWise)
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Mergers & acquisitionsCorporate finance advisoryCapital raising
30 September 2024
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Overview
Wise (previously TransferWise) provides cross-border payments solutions. It listed on the London Stock Exchange via a direct listing in 2021. Customers can hold and send money in over 40 currencies through Wise’s two main offerings: the Wise Account (consumer) and Wise Business (business). Since 2019, Wise has experienced 764% revenue growth, supported by a 3.9x increase in active customers and rising interest income generated from customer balances.
Operating metrics – FY19 vs FY24 (31 March year-end)
Revenue by geography from FY19 to FY24
Wise profit before tax breakdown – FY19 vs FY24 (£m)
Active customers
(m)
Cross-border volume*
(£bn)
Volume per customer (£000s)
3.2
12.2
0.1
0.6
-
5
10
15
FY19
FY24
Personal
Business
7.0
7.1
39.4
52.2
-
20
40
60
FY19
FY24
Personal
Business
22.5
87.2
4.7
31.3
-
50
100
150
FY19
FY24
Business
Consumer
*Cross-border volume is the dollar sum of transactions between currencies
-
50
100
150
200
250
300
350
Rest of theworld
UK
North America
Asia-Pacific
Europe (excl.UK)
FY19
FY24
FY19
FY24
**Includes benefits paid relating to customer balances and net credit losses on financial assets
0.63%
0.65%
0.67%
-
0.2%
0.4%
0.6%
0.8%
1.0%
FY22
FY23
FY24
53
162
16
154
71
169
-
100
200
300
400
500
FY22
FY23
FY24
Listed bonds
Money market funds
Cash at bank
Tech Insights #348
Wise (formerly TransferWise)
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Mergers & acquisitionsCorporate finance advisoryCapital raising
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Total customer balances (£bn)
7
11
13
-
3
6
9
12
15
FY22
FY23
FY24
Cross-border payment players’ interest income (£m)
Share price index since August 21**
Take rate*
Interest income (£m)
0.1%
1.3%
3.6%
-
1%
2%
3%
4%
FY22
FY23
FY24
Interest as a % of balance
**Note Wise went public on & 7 July 2021. Revolut is not publicly listed.
Rising customer balances and high interest rates are driving interest income growth.
-
20
40
60
80
100
120
Aug 21
Feb 22
Aug 22
Feb 23
Aug 23
Feb 24
Aug 24
-
150
300
450
600
Year prior
Last year
This year
Payoneer
Wise
Revolut
Paypal
Year prior
Last year
This year
0.2%
0.6%
1.6%
0.3%
9.0%
27.8%
0.7%
14.2%
31.6%
0.6%
8.8%
27.8%
Interest income as % of total revenue
*Total cross-border revenue as a proportion of cross-border volume
CSL
F&P Healthcare
Cochlear
Sonic Healthcare
Pro Medicus
EBOS
Telix
Ansell
Healius
AFT Pharmaceuticals
Aroa
(10%)
-
10%
20%
30%
40%
50%
(20%)
-
20%
40%
60%
80%
LTM revenue growth
EBITDA margin
Tech Insights #347
NZ & AUS listed healthcare companies
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Mergers & acquisitionsCorporate finance advisoryCapital raising
23 September 2024
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Overview
This report focuses on listed healthcare companies headquartered in NZ and Australia. This list does not include aged care / service providers or companies with less than an NZD $100m enterprise value. It’s worth noting that the largest company on the NZX and the third largest on the ASX are both included in this grouping (Fisher and Paykel Healthcare on the NZX and CSL on the ASX).
Share price index for selected NZ healthcare companies since ‘19
Relative enterprise value (NZD $b)
Share price index for AUS companies that have gone 10x since ‘19
Revenue growth and EBITDA margin
-
1,000
2,000
3,000
4,000
5,000
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Pro Medicus
Telix
Neuren
Race Oncology
-
20
40
60
80
100
120
140
160
180
-
20
40
60
80
100
120
140
160
180
CSL
F&P Healthcare
Cochlear
Sonic Healthcare
Pro Medicus
Other (29 companies)
EBOS
Telix
Ansell
Healius
+
-
50
100
150
200
250
300
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
F&P Healthcare
EBOS
AFT Pharmaceuticals
Volpara
Aroa
(● NZ, ● AUS)
Tech Insights #347
NZ & AUS listed healthcare companies
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Mergers & acquisitionsCorporate finance advisoryCapital raising
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F&P Healthcare revenue (NZD $m) & EBITDA margin
Pro Medicus revenue (NZD $m) & EBITDA margin
Comparator metrics for largest NZ & AUS healthcare companies (NZD $m)
Name
Country
Overview
Enterprise value
LTM revenue
LTM revenue growth
LTM EBITDA margin
EV / Revenue
EV / EBITDA
CSL
AUS
Biopharmaceutical company (vaccines, plasma, antivenoms, etc.)
178,451
24,233
13%
32%
7x
23x
F&P Healthcare
NZ
Manufacturer of medical devices including respiratory products
22,118
1,758
11%
27%
13x
46x
Cochlear
AUS
Develop hearing implants and medical devices
20,096
2,441
14%
27%
8x
31x
Sonic Healthcare
AUS
Medical diagnostic services, including pathology and radiology
18,142
9,362
8%
16%
2x
12x
Pro Medicus
AUS
Healthcare software, offering radiology information systems
17,653
175
28%
75%
101x
135x
EBOS
NZ
Healthcare and animal care products distributor
8,443
14,257
7%
5%
1x
13x
Telix
AUS
Biopharmaceutical focused on cancer diagnosis and treatment
6,611
542
209%
12%
12x
105x
Ansell
AUS
Manufacturer of medical protective clothing and gloves
4,129
2,671
(1%)
17%
2x
9x
Healius
AUS
Medical diagnostic services, including pathology and imaging
2,874
1,888
1%
18%
2x
8x
AFT Pharmaceuticals
NZ
Developer and distributor of pharmaceuticals
372
195
25%
13%
2x
14x
Aroa
NZ
Bioabsorbable medical products for tissue repair
156
69
9%
(11%)
2x
nm
Median
8,443
1,888
11%
17%
2x
19x
-
10%
20%
30%
40%
-
500
1,000
1,500
2,000
FY19
FY20
FY21
FY22
FY23
FY24
EBITDA margin
Revenue
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
20
40
60
80
100
120
140
160
180
FY19
FY20
FY21
FY22
FY23
FY24
EBITDA margin
Revenue
-
20
40
60
80
100
120
140
160
Tech Insights #346
ASX tech companies 2024
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Mergers & acquisitionsCorporate finance advisoryCapital raising
16 September 2024
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Overview
Major ASX tech companies have performed well since the start of 2023, with the overall ASX 200 Information Technology Index up 83%. Wisetech’s performance stands out, reaching over AUD $40b in enterprise value. NZ based Xero has also been a strong performer, with a 102% share price increase since the start of 2023 edging it closer to its all-time high in 2021. Shown on this page are the 20 largest ASX tech companies, 18 of which have an enterprise value of more than AUD $1b. The combined equity value of these companies (AUD $169b) is greater than the entire equity value of all companies on the NZX.
Share price index for the largest ASX tech companies
EV of 20 largest ASX tech companies - AUD $b
-
50
100
150
200
Jan 23
Mar 23
May 23
Jul 23
Sep 23
Nov 23
Jan 24
Mar 24
May 24
Jul 24
Sep 24
Wisetech
Xero
Computershare
REA
CAR Group
ASX 200 Information Technology Index
ASX 200 Index
Seek
NextDC
Wisetech
REA
Xero
Computershare
CAR Group
NextDC
Seek
Technology One
HUB24
Codan
IRESS
Domain
Macquarie Tech
Nuix
SiteMinder
Objective
MoneyMe
Megaport
Hansen
Data#3
Tech Insights #346
ASX tech companies 2024
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Mergers & acquisitionsCorporate finance advisoryCapital raising
16 September 2024
Name
Overview
Enterprise value
LTM revenue
LTM revenue growth
LTM EBITDA
EBITDA margin
EV / LTM revenue
EV / LTM EBITDA
Share price Δ since 2023
Wisetech
Logistics software provider
43,645
1,042
28%
502
48%
41.9x
87.0x
158%
REA
Real estate platform
26,512
1,677
20%
802
48%
15.8x
33.1x
80%
Xero
Accounting software
21,451
1,589
25%
483
30%
13.5x
44.4x
102%
Computershare
Shareholder services and technology solutions
17,720
4,453
(5%)
1,451
33%
4.0x
12.2x
7%
CAR Group
Digital marketplace for automotive sales
14,867
1,099
41%
568
52%
13.5x
26.2x
77%
NextDC
Data centre operator
9,350
404
12%
196
49%
23.1x
47.7x
93%
Seek
Online employment marketplace
9,142
1,084
(12%)
413
38%
8.4x
22.1x
7%
Technology One
Enterprise software for govt, education & healthcare
7,392
469
18%
195
41%
15.8x
38.0x
75%
HUB24
Investment and superannuation platforms
4,741
327
17%
92
28%
14.5x
51.3x
115%
Codan
Develop and manufacture electronic solutions
2,810
550
21%
148
27%
5.1x
19.0x
261%
IRESS
Financial software solutions
2,179
617
(1%)
76
12%
3.5x
28.7x
2%
Domain
Property marketplace
1,965
391
13%
137
35%
5.0x
14.3x
3%
Macquarie Tech
Technology and data centre services
1,854
363
5%
109
30%
5.1x
17.0x
32%
Nuix
Data analytics for legal, regulatory & cybersecurity
1,771
221
21%
67
30%
8.0x
26.4x
764%
Objective
Enterprise solutions for govt & regulated industries
1,323
115
5%
42
37%
11.5x
31.3x
11%
SiteMinder
Hotel commerce platform
1,296
191
26%
0
0%
6.8x
nm
65%
MoneyMe
Fintech offering digital credit products
1,181
214
(10%)
156
73%
5.5x
7.6x
(56%)
Megaport
Cloud connectivity and data transfer
1,164
195
28%
42
21%
6.0x
27.7x
20%
Data#3
IT services provider
947
806
0%
61
8%
1.2x
15.6x
14%
Hansen
Billing and customer care software
936
353
13%
92
26%
2.7x
10.2x
(15%)
Median
2,494
437
15%
142
32%
7.4x
26.4x
48%
Comparator metrics for 20 largest ASX tech companies – AUD $m
Tech Insights #345
LawVu Hnry Joyous Thematic Tracksuit Throughline Sunfed FirstAML Partly Group Mint Innovation Openstar Technologies Relay.ai Cotiss NextWork SafeStack Excellent Energybank Orbis Blockchain Technologies Veve Supaloyal Machine Learning Solutions Multitudes Vessev Freightfish Seachange New Zealand Halter Ao Air Ask Nicely Authsignal Vertus Energy Easyrent Kiki Soul Aether Foundry Lab Partly Group Joyous Vend Fergus insiteAI mooven Hnry bspkl Zerojet Kara Technologies Dexibit CarbonClick Cotiss Runn Hectre insiteai Auror Komodo Kry10 Vend MenuAid Appetise Data Masque Runn Fuel50 Auror CodeLingo AirTree Ventures Blackbird Ventures Square Peg Capital Equity Venture Partners Investible Afterwork Folklore OIF Shearwater Reinventure
Australian Venture Capital
Mergers & acquisitions
Corporate finance advisory
Capital raising
9 September 2024
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Total
AirTree Ventures
4
SquarePeg Capital
3
Equity Venture Partners
4
Investible
5
Reinventure
2
Folklore
4
Afterwork
4
OIF
2
Shearwater
2
Blackbird Ventures
25
55
Overview
This Tech Insights report presents a select group of Australian Venture Capital firms with a presence in New Zealand. On the first page we present their investments or acquisitions through time, with the second page presenting the level of ownership of active New Zealand investments (where available from the Companies Register).
Transactions by investor (first investment date, grey indicates an exited company)
2012
2014
2016
2018
2020
2022
2024
2017
2018
2019
2020
2021
2022
2023
2024
Blackbird Ventures
Tech Insights #345
Australian Venture Capital
Mergers & acquisitions
Corporate finance advisory
Capital raising
9 September 2024
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Disclaimer The information provided in this report has been solely sourced from the New Zealand Companies Office and FactSet. Clare Capital holds no responsibility over the
actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
-
5%
10%
15%
20%
25%
30%
35%
40%
Founded date
2014
2012
2014
2014
2014
2013
2017
2016
2012
2012
Active
4
2
4
5
2
3
4
2
2
24
Exit
-
1
-
-
-
1
-
-
-
1
25th percentile
8.9%
8.6%
3.6%
6.0%
15.3%
18.8%
4.6%
30.6%
2.6%
6.6%
Median
11.0%
9.7%
10.3%
7.2%
18.3%
19.9%
4.6%
31.8%
2.6%
11.7%
75th percentile
14.3%
10.7%
18.3%
7.9%
21.3%
21.0%
4.6%
33.0%
2.6%
16.2%
Current investor ownership % (where available per Companies Register)
Tech Insights #344
Australian Private Equity
Mergers & acquisitions
Corporate finance advisory
Capital raising
2 September 2024
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Total
Adamantem Capital
3
Allegro Funds
3
BGH Capital
4
Five V Capital
5
Pacific Equity Partners
7
Quadrant Private Equity
9
Next Capital
5
Crescent Capital
3
Mercury Capital
5
Advent Partners
2
Potentia
1
47
Overview
This Tech Insights report presents a select group of Australian Private Equity firms with a presence in New Zealand. On the first page we present their investments or acquisitions through time, with the second page presenting the level of ownership of active New Zealand investments (where available from the Companies Register).
Transactions by investor (first investment date, grey indicates an exited company)
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2000 to 2006
Tech Insights #344
Australian Private Equity
Mergers & acquisitions
Corporate finance advisory
Capital raising
2 September 2024
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Disclaimer The information provided in this report has been solely sourced from the New Zealand Companies Office and FactSet. Clare Capital holds no responsibility over the
actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
-
20%
40%
60%
80%
100%
Founded date
2016
2004
2017
2016
1998
1996
2005
2000
2010
1984
2014
Active
3
1
4
3
2
4
3
1
1
2
1
Exit
-
2
-
2
5
5
2
2
4
-
-
Median
76.0%
73.4%
69.1%
81.5%
59.0%
37.1%
65.2%
84.9%
88.9%
56.3%
19.9%
Current active investor ownership % (where available per Companies Register)
Bastion Security Group includes Helix Security, ZX Security and Quantum Security.
Heritage Lifecare Hellers Evnex Gull Hannahs / Number one shoes Carpet Court New Zealand Pushpay Holdings CyberCX Fusion5 Abano Healthcare Group Mooven Habit Health Orbit Remit Totara Learning Solutions Education Perfect UP Education FirstCape ACG Education Manuka Health Griffins Foods Asahi Beverages (NZ) Frucor Beverages / Frucor Suntory Helix Security Services ZX Security Quantum Security Services Bastion Security Group New Zealand Health Group Sunfed Nestle SA / NZ Seniors Money International Summerset Group Holdings Kathmandu Jucy Group Hirepool Ltd New Zealand Bus Vitaco Health Group Go Bus Transport Prime Panels New Zealand Metro Performance Glass Kiwi Fresh Orange co / Simply Squeezed Tamaki Health Group International Volunteer HQ Blue Star Group NXP Limited Hexagon Holdings Integrated Control Technology Flintfox International Vista Group
-
0.5
1.0
1.5
2.0
2.5
3.0
Shopify
PayPal
Wisetech
Riskified
Vista
Olo
Atlassian
Life360
Unity
Block
Clearwater
AvidXchange
Palantir
Paycom
Q2
Veeva
Xero
2U
Datadog
UiPath
Jfrog
AppFolio
Ansarada
DigitalOcean
Fastly
CrowdStrike
ServiceNow
Sprout
Cloudflare
Snowflake
Squarespace
BigCommerce
Zscaler
Twilio
Autodesk
Samsara
Klaviyo
Workday
SentinelOne
Appian
Braze
nCino
Agora
Elastic
Jamf
Tenable
monday.com
Five9
Adobe
Objective
Workiva
Bill
Qualys
Gitlab
Paylocity
Okta
Dynatrace
Confluent
Wix.com
Nuix
Sprinklr
Procore
HubSpot
Couchbase
BlackLine
Kaltura
Smartsheet
Freshworks
AvePoint
RingCentral
CS
MongoDB
DocuSign
Everbridge
Zuora
Asana
Toast
Salesforce
HashiCorp
Definitive
ZoomInfo
WalkMe
PagerDuty
Amplitude
C3.ai
Dropbox
ON24
Box
Domo
Overview
SaaS Magic Number is a metric for SaaS companies that examines the level of sales and marketing (S&M) spending required to generate new revenue. The calculation tells you how much new annualised revenue the company generated for every $1.00 spent on sales and marketing. For example, a SaaS Magic Number of 0.7 means that for every $1.00 spent on S&M, $0.70 of new annual revenue is achieved. A company with a well-performing sales engine that has a SaaS Magic Number of 1.0 shows it will take one year to recover the corresponding S&M expense to gain that revenue. A company with a poor-performing sales engine that has a SaaS Magic Number of 0.5 or less will extend this period out to two or more years.
Tech Insights #343
SaaS Magic Number
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
26 August 2024
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SaaS Magic Number Formula
(Current quarter revenue –
previous quarter revenue) x 4
Previous quarter S&M spend
Key
US Listed
ASX or NZX Listed
Companies > 0.75
Good sales efficiency
Could spend more in S&M
Companies < 0.5
Poor sales efficiency
Rethink how S&M is spent
3.0+
Companies 0.75 – 0.5
Neutral sales efficiency
SaaS Magic Number as at December 2023
The following charts examine the performance of 89 selected companies from the Clare Capital Cloud Index.
Median
Dec 2021
0.80
Dec 2022
0.59
Dec 2023
0.50
Quarter-on-quarter revenue growth (December 2023)
-
20%
40%
60%
Shopify
PayPal
Wisetech
Riskified
Vista
Olo
Atlassian
Life360
Unity
Block
Clearwater
AvidXchange
Palantir
Paycom
Q2
Veeva
Xero
2U
Datadog
UiPath
Jfrog
AppFolio
Ansarada
DigitalOcean
Fastly
CrowdStrike
ServiceNow
Sprout
Cloudflare
Snowflake
Squarespace
BigCommerce
Zscaler
Twilio
Autodesk
Samsara
Klaviyo
Workday
SentinelOne
Appian
Braze
nCino
Agora
Elastic
Jamf
Tenable
monday.com
Five9
Adobe
Objective
Workiva
Bill
Qualys
Gitlab
Paylocity
Okta
Dynatrace
Confluent
Wix.com
Nuix
Sprinklr
Procore
HubSpot
Couchbase
BlackLine
Kaltura
Smartsheet
Freshworks
AvePoint
RingCentral
CS
MongoDB
DocuSign
Everbridge
Zuora
Asana
Toast
Salesforce
HashiCorp
Definitive
ZoomInfo
WalkMe
PagerDuty
Amplitude
C3.ai
Dropbox
ON24
Box
Domo
-
5%
10%
15%
20%
Tech Insights #343
SaaS Magic Number
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
26 August 2024
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Over the last three years, the median revenue growth has deteriorated.
Over the last three years, the median sales and marketing spend as a % of revenue has decreased.
20%+
Companies that have a high SaaS Magic Number are growing revenue at a faster rate.
Companies that have a high SaaS Magic Number are spending less as a % of total revenue.
Sales & marketing spend % revenue (December 2023)
Median
Dec 2021
8.2%
Dec 2022
5.7%
Dec 2023
4.6%
Median
Dec 2021
42.9%
Dec 2022
41.3%
Dec 2023
36.4%
Tech Insights #342
Kogan.com and Mighty Ape
Mergers & acquisitions
Corporate finance advisory
Capital raising
19 August 2024
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Overview
Kogan.com is an Australian online retailer offering a diverse range of products and services, including consumer electronics, homewares, mobile plans, and insurance. In March2014 the business officially launched in New Zealand, but it was unable to capture market share away from incumbents JB Hi-Fi, Harvey Norman, and Dick Smith (which Kogan.com later acquired the brand of in March 2016). In 2020, Kogan.com acquired local retailer Mighty Ape to increase its market presence in NZ. In this report we analyse MightyApe’s contribution to Kogan.com and compare financial metrics of the business to peers.
(10)
-
10
20
30
40
50
60
70
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Mighty Ape
Kogan
Kogan.com adjusted EBITDA split (AUD $m)
Since its acquisition MightyApe has consistently contributed positive EBITDA to Kogan.com.
-
100
200
300
400
500
600
700
800
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Mighty Ape (NZ)
Mighty Ape (AU)
Kogan (NZ)
Kogan (AU)
Kogan.com revenue split (AUD $m)
Kogan.com begun operating in NZ in 2014, but never reached a scale at which they were required to report NZ as its own segment (until 2021). We estimate that Kogan NZ’s share of total revenue was approx. 2% before acquiring Mighty Ape.
After acquiring the business Kogan has leveraged the scale within the existing business to double Mighty Ape’s revenue.
When first acquired, Mighty Ape represented just 10% of revenues but now contributes 31%.
Kogan.com acquired Mighty Ape for AUD $122 million in December 2020, bringing more than 690,000 unique customers and subscribers.
The total consideration comprised of four tranches with 70% for tranches one and two, and 15% each for three and four. AUD $56 million was paid on completion with the remainder subject to performance-based targets on normalised EBITDA.
Transaction highlights
Tech Insights #342
Kogan.com and Mighty Ape
Mergers & acquisitions
Corporate finance advisory
Capital raising
19 August 2024
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers.
Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
-
100%
200%
300%
400%
500%
Aug 19
Feb 20
Aug 20
Feb 21
Aug 21
Feb 22
Aug 22
Feb 23
Aug 23
Feb 24
Aug 24
Harvey Norman
Briscoes
The Warehouse
The Reject Shop
ASX 200
Kogan.com
Exchange
Year end
1-yr share price change
Enterprise value ($m)
LTM revenue ($m)
LTM revenue growth (%)
Gross margin (%)
LTM EBITDA ($m)
EBITDA margin (%)
EV / LTM revenue
EV / LTM EBITDA
Harvey Norman
ASX
Jun
29.2%
6,648
3,901
(6.1)
32.0
824
21.1
1.7x
8.1x
Briscoe Group
NZX
Jan
(5.1%)
700
733
2.2
42.4
146
19.9
1.0x
4.8x
Warehouse Group
NZX
Jul
(29.5%)
409
2,978
(0.6)
34.2
250
8.4
0.1x
1.6x
The Reject Shop
ASX
Jun
(35.7%)
51
838
4.3
39.7
124
14.8
0.1x
0.4x
Kogan.com
ASX
Jun
(23.9%)
361
461
(19.5)
35.3
40
8.7
0.8x
9.0x
Median
(23.9%)
409
838
(0.6)
35.3
146
14.8
0.8x
4.8x
Selected comparable financial metrics as of 16 Aug 24 (AUD)
Revenue share by product / division (AUD $m)
Indexed price returns from Aug 19
37%
32%
32%
17%
64%
14%
5%
-
100
200
300
400
500
FY23
FY18
Exclusive brands
MightyApe
Third party brands
Other
Other includes, Kogan First, Marketplace, Mobile, Money, Advertising and other.
Mighty Ape acquisition
* Gross margin is calculated from sales of products to customers less cost of goods sold and does not include other revenue.
-
5%
10%
15%
20%
ANZ
Westpac
BNZ
ASB
Kiwibank
Rabobank
-
1%
2%
3%
ANZ
Westpac
BNZ
ASB
Kiwibank
Rabobank
83%
66%
56%
66%
71%
22%
27%
19%
17%
78%
9%
13%
9%
10%
-
50
100
150
Rabobank
Kiwibank
ASB
BNZ
Westpac
ANZ
Housing loans
Business loans
Agriculture loans
Other loans
Consumer loans
29%
19%
19%
19%
5%
3%
-
100
200
300
400
500
600
700
Total assets (NZ $b)
ANZ
Westpac
BNZ
ASB
Kiwibank
Rabobank
NZ bank market share - by total assets (NZD $b) – Mar 24
Tech Insights #341
New Zealand banking overview
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Mergers & acquisitionsCorporate finance advisoryCapital raising
12 August 2024
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Overview
This report looks into the New Zealand (NZ) banking sector. The four largest banks are all Australian owned, however this analysis only covers New Zealand banking activity. Kiwibank, the fifth largest, is significantly smaller and owned by the NZ Government. Rabobank, the sixth largest, is owned by Dutch bank, Rabobank Nederland. The second page of this report looks at the new capital requirements which was phased in from Jul 22. All information in this report, unless stated otherwise, is as at Mar 24.
Breakdown of largest NZ loan books (NZD $b) – Mar 24
6%
Major banks’ return on equity (ROE)
ROE is the ratio of profit after tax to average equity. ROE is an indicator of how efficiently shareholder funds are used to generate profits. The scale and operating expense efficiency of the larger banks contributes to their higher ROE.
Annual net interest margins (NIM) – last 7 years
Net interest income is the primary driver of NZ banks’ earnings. The NIM ratio of net interest income to average interest-bearing assets, is an indicator of how efficiently funding generates revenue. The recent period of rising interest rates has contributed to the rising NIM.
Mar 18 – Mar 24
Mar 18 – Mar 24
Other banks
Housing loans in NZ total to $352b
Minimum total capital requirements, including Prudential Capital Buffer (PCB) – to be phased in by Jul 28
•
The total capital requirements for New Zealand banks are changing. The transition period started in Jul 22 and banks have a seven-year period to meet the capital requirements shown in the graph.
•
The four largest banks (ANZ, Westpac, BNZ and ASB) have been identified as Domestic Systemically Important Banks (DSIBs). These banks are subject to the DSIB buffer which requires them to hold an additional layer of capital, the extra insurance acknowledgment that failure of one of these banks would have serious consequences.
•
The counter-cyclical capital buffer, normally set at 1.5%, may be set at higher or lower levels in times of excessive credit build-up or during post-recession recovery.
•
The conservation buffer is designed to ensure banks can absorb losses during economic and financial stress.
Tech Insights #341
New Zealand banking overview
Page 2 of 2
Disclaimer The information provided in this report has been sourced and calculated the RBNZ Bank Financial Strength Dashboard. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
12 August 2024
Large banks (DSIBs) - total capital ratios as at Mar 24
The large banks (DSIBs) will need to continue to increase capital levels over the remaining four years of the transition, to reach the requirements by Jul 28. This totals ~$20b of additional capital, across all banks, since the start of the period.
8%
9%
9%
2.5%
5.5%
5.5%
1.5%
1.5%
2%
-
5%
10%
15%
20%
All banks(pre-2022)
Largebanks(DSIBs)
Otherbanks
% of Risk Weighted Assets (RWA)
DSIB buffer
Counter-cyclicalcapital buffer
Conservation buffer
Total capital ratio
PCB
Other banks - total capital ratios as at Mar 24
Some smaller banks have already reached the required minimum total capital levels.
-
5%
10%
15%
20%
ANZ
Westpac
BNZ
ASB
% of RWA
Minimum capital requirement (18% - 2028)
-
5%
10%
15%
20%
Kiwibank
Rabobank
TSB
SBS
Bank ofChina
Heartland
% of RWA
Minimum capital requirement (16% - 2028)
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394
225
211
187
118
84
25
-
100
200
300
400
500
Tech Insights #340
The Unicorn Club
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
5 August 2024
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Overview
A unicorn is a private company with a valuation that exceeds USD $1b. The term was first used by venture capitalist Aileen Lee in 2013, highlighting the rarity of a privately held start-up to reach such a valuation. This Tech Insights report looks at unicorn trends and a breakdown by industry and geography, as well as more closely at selected unicorn companies vs key competitors/comparators within relative industries.
Top 15 unicorns (by estimated valuation) as of May 2024*
Unicorns by broad industry (#)*
Unicorns by country (#)*
Company
Valuation (USD $bn)
Country
Industry
China
Media (TikTok)
US
Industrials
US
Enterprise tech
US
Financial services
Singapore
Consumer & retail
US
Enterprise tech
UK
Financial services
US
Consumer & retail
Australia
Enterprise tech
US
Financial services
US
Enterprise tech
US
Media (Gaming)
NZ
Financial services
US
Enterprise tech
US
Enterprise tech
There are approximately 1,200 unicorn companies worldwide.
17
18
19
20
24
25
31
32
40
43
66
70
80
210
268
665
168
70
56
31
27
23
9
193
-
200
400
600
800
*Unicorn data sourced from CB Insights.
Xiahongshu
-
2x
4x
6x
8x
10x
12x
14x
16x
-
50
100
150
200
250
300
350
400
GAP
Shein
Inditex (Zara)
H&M
Alibaba
Enterprise value (USD $m)
EV/Rev (RHS)
-
10x
20x
30x
40x
50x
60x
70x
-
5
10
15
20
25
30
35
TechnologyOne
Altium
Seek
Xero
Canva
WisetchGlobal
Enterprise value (USD $b)
EV/Rev (RHS)
-
5x
10x
15x
20x
25x
-
5
10
15
20
25
Allfunds Group
HUB24
Envestnet
Netwealth
FNZ
SS&C
Enterprise value (USD $b)
EV/Rev (RHS)
44
-
2x
4x
6x
8x
10x
12x
-
200
400
600
800
1,000
1,200
Snap inc
X
Bytedance
Meta
Enterprise value (USD $b)
EV/Rev (RHS)
Tech Insights #340
The Unicorn Club
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet and CB Insights. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
5 August 2024
Bytedance vs comparative technology companies
Shein vs global manufacturing comparators
FNZ vs global FinTech companies
Canva vs ASX listed tech companies
Based on the purchase price for the business in 2022.
1,281
+
-
20%
40%
60%
80%
100%
FY19
FY23
-
20%
40%
60%
80%
100%
FY19
FY23
Tech Insights #339
Gentrack hits one billion in market cap
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
29 July 2024
Subscribe and see previous reports at clarecapital.co.nz/tech-insights
Overview
Gentrack listed on the NZX in 2014 as a provider of utility and airport software solutions. Gentrack experienced close to no revenue growth between FY18-FY21 and saw a resulting fall in its share price. The company has subsequently rebounded, with an 8x increase in share price between July 2022 and July 2024. This has been driven by rediscovered revenue growth. Note: Gentrack has a September financial year end.
-
2
4
6
8
10
12
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Revenue (NZD $m) and EBITDA margin
Revenue by geography
Share price since IPO (NZD)
Revenue by sector
UK
UK
AUS
AUS
ROW
ROW
NZ
NZ
-
10%
20%
30%
-
100
200
300
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Recurring revene
Other revenue
EBITDA margin
Utilities
Utilities
Airports
Airports
Company guidance
8x increase in share price over two-year period
EV / revenue = 1x
EV / revenue = 3x
EV / revenue = 7.5x
Gary Miles appointed CEO
Sept year end
Market cap exceeds NZD $1b
Tech Insights #339
Gentrack hits one billion in market cap
Page 2 of 2
Subscribe and see previous reports at clarecapital.co.nz/tech-insights
Disclaimer The information provided in this report has been solely sourced and calculated from FactSet and public information. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
29 July 2024
Country
Description
EV
LTM Revenue
Revenue growth
LTM EBITDA
EBITDA margin
EV / Rev
EV / EBITDA
1yr share price Δ
ikeGPS
NZ
Software for GPS capture devices
110
21
(31%)
(12)
(55%)
5x
nm
1%
Energy One
AUS
Software for electricity and gas industry
168
53
28%
11
20%
3x
16x
22%
EROAD
NZ
Software and hardware for fleet management
205
178
11%
42
24%
1x
5x
(8%)
Serko
NZ
Software for corporate travel
358
69
48%
(4)
(6%)
5x
nm
(9%)
ReadyTech
AUS
Software for various industries
405
119
20%
36
30%
3x
11x
1%
Vista
NZ
Software for the cinema industry
569
143
6%
12
9%
4x
46x
33%
Hansen Tech.
AUS
Software for energy, water and communication
884
357
10%
112
31%
2x
8x
(14%)
Nuix
AUS
Software for analytics and intelligence
1,061
209
23%
32
15%
5x
33x
131%
Vertex
USA
Software for tax compliance solutions
6,207
979
20%
151
15%
6x
41x
107%
Wisetech
AUS
Software for logistics industries
31,173
1,016
27%
460
45%
31x
68x
12%
Gentrack
NZ
Software for utilities and airports
1,149
188
22%
25
14%
6x
45x
135%
Median
569
178
20%
32
15%
5x
33x
12%
Selected comparators (NZD $m)
Revenue per employee (NZD $000s)
Selected NZX tech companies: EV / LTM revenue since 2020
-
2x
4x
6x
8x
10x
Jan 20
Jul 20
Jan 21
Jul 21
Jan 22
Jul 22
Jan 23
Jul 23
Jan 24
Jul 24
-
50
100
150
200
FY18
FY19
FY20
FY21
FY22
FY23
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