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Worth reading about kentik mentioned in the blurb. I know similar other companies provide similar software but getting close to these companies or their partners a good strategy.
All the latest updates signify real progress and confidence here, taken a position and will continue to add
Research note here: https://www.equitydevelopment.co.uk/research/new-partnership-supporting-growth
Corero has announced a new partnership agreement with TechEnabler, a Brazilian network solutions provider. Latin America is a relatively untapped market for Corero and this agreement should yield considerable upside as it develops. We continue to see fair value at 14p and upside risk to our current forecasts.
Kentik channel partner. TechEnabler is a Kentik channel partner and integrator headquartered in Sao Paulo, Brazil. Kentik is a US based network observability platform which visualises cloud and network traffic. Kentik enables the resolution of any troubleshooting problems many times faster than normal and helps mitigate cyber-attacks.
$1m+ booked. The partnership agreement has already generated bookings for Corero’s products and services in excess of $1m as part of its Scrubbing-as-a-Service offering.
Strong trading in FY24E. Corero recently highlighted that revenues for FY24E are to be in the region of approximately $22.3m, indicating YoY revenue growth of +11%. Corero closed last year with annualised recurring revenue (ARR) showing even stronger growth of +17% YoY to $16.9m.
Debt free. Corero is now debt free and, with a very experienced CEO Carl Herberger now onboard, it can focus on executing a growing pipeline of new business. We see plenty of capacity for upside risk to our FY24E forecasts. The business is self-sustaining and, in our view, undervalued on an EV/sales ratio of 1.8x this year.
Pretty material buy there, must have a good level of confidence !
Assume open market but haven’t seen this size of deal go through.
Just reading about prolexic (akamai bought for $370m ten years ago) as I couldn't quite work how it fitted in when they already had a ddos product line.
It is non competitive and adds to their product line as prolexic is cloud and not hybrid/on prem - not sure with the general move to cloud what the proportion between the two is. Really opens up another channel at very little sales cost to corero.
Https://www.akamai.com/resources/customer-story
The client base for Akamai is kike wow ....
City of Los Angles .... Yahoo ....
I was looking into this company
They announced a partner ship with Akamai
https://finance.yahoo.com/quote/AKAM/
They are massive with lots of customers, could be worth some nice revenue in time
Smaller,
No real legacy issues - it is very difficult to assess YoY a software business that is moving to SaaS but still operates a hybrid model.
- to me executing well in the market, sticks to its strategic focus areas within DDOS
- Agreement, shareholding with Juniper has been a key change but a little uncertainty creeping in with HP buying and wondering whether elements of the Juniper business are peripheral, or the loss of a key Corero champion within Juniper
- Akamai will be another real revenue step changer with little cost, great to see a couple of "material" deals already. the leverage of income virtually straight to bottom line will be the change to get the share out of the 7.50-8.50 rut.
- CEO still to make his mark. Did look at his CV on linked in - his last job is weird and concerning
- great cash balance and appears very well run operationally
- doesnt appear to have visible IR in the PI world
I thought the TU looked pretty good. I'm new to this stock but first impressions are favourable. No doubt i will find some legacy issues if I search back on this bulletin board. Hopefully these are behind the company now and there is some blue sky on the horizon.
Corero’s trading update points to double digit ARR growth and a significant beat to our FY23E EBITDA forecast. We have upgraded our full year numbers to reflect this strong bottom line performance. The new Akamai partnership has already brought two new customers to the Group and we expect to see continued momentum from this route to market.
We have left our FY24E forecasts unchanged for now. but, with a new CEO, Carl Herberger, onboard and an excellent pipeline of new business, we see plenty of capacity for upside risk to our FY24E forecasts. The business is self-sustaining and, in our view, undervalued on an EV/sales ratio of 1.8x this year. We continue to see fair value at 14p, with the potential to rise.
Link to report: https://www.equitydevelopment.co.uk/research/confirmed-double-digit-growth-in-arr
Due this week. As usual cns very tightrope until it's released, the difference between good and bad can be a single order moving from Dec to Jan or vice versa.
Interesting to see up buying juniper.
A quick Google and I can't see HP having a ddos supplier agreement so hopefully positive, but mergers are always disruptive especially if their a few key relationships in juniper.
Looks to have a great background, clear US focus to the company now - if this was on nasdaq I think this would be valued at 2-3x the london listing.
Share options seem a little steep compared to what is offered in the UK, but this is waht the market is like in US companies - hopefully lower base and completely aligned to shareholders.
Which makes sense
with rev growth returning, 5* rev looks on
tp 25p++
Funny with CNS - always a days market delay to an RNS.
As a large element of my role I actually work in the space / satellite sector - would like to know the customer but this is the future.
Another great rns extending market potential.
Very happy to hold.
New content out on Corero Network Security below that's worth a look!
In a double-header, we're pleased to publish our latest note from Simon Strong on the detail & ramifications of the Akamai deal announced last month.
And in a short 4 minute interview, Ashley Stephenson (Chief Technology Officer) takes viewers through key questions around DDoS attacks and how progress Corero are making on several fronts is translating into financial success.
The video is here: https://youtu.be/Nz_NnysgKds?si=xLTgGCPIB690ucjs
Research note: https://www.equitydevelopment.co.uk/research/parsing-the-akamai-deal-cto-interview
About 4% if my quick maths is right.
Market maker has a buyer, no way they would take this risk.
Hasn't dropped the share price.
Interesting to see if this is over the disclosure levels so we see who it is.
Apart from Jens, who I can't see selling at this level, can't see who the seller might be ?
Them trades,were big?
Jolly,
The market simply doesn't understand the Akamei deal - non cannibalising accretive revenue using someone elses salesforce, CNS have shown they are good at managing partner relationships. CNS now have two nasdaq behemoths batting on their behalf in all geographies.
With a SaaS model you're never going to get the big specatular bang of revenue growth, but what CNS are building is just as impressive.
The lack of interest here is absurd
revenue growth is back
tp 20p++
Another good update in what is traditionally a slow quarter for tech. Seems very few PIs interested in cns either as a long term hold or trading stock.
Interesting to see cloudflares outage the other week, with cns focus not sure if they overlap markets.
Corero Network Security plc (AIM: CNS), a leading provider of distributed denial of service ("DDoS") protection solutions, conducted an Investor Presentation covering their Interim Results for the six months ended 30th June 2023.
Jens Montanana, Executive Chairman and Phil Richards, Chief Financial Officer ran investors through highlights of the period which included double-digit growth in annual recurring revenues (ARR). The management discussed the strategic partnership with Akamai who have 20% market share of the DDoS market, and how this further strengthens confidence in Corero's products.
The full video has been divided into chapters as below:
0:00:20 Introduction to Corero
0:07:50 Financial Highlights & Summary
0:11:47 Strategic Update
0:17:02 Summary & Outlook
0:18:33 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/corero-network-security-investor-presentation-interim-results-september-2023
In today's H1 results Corero Network Security
- delivered double digit growth in order intake, revenue and ARR
- they don't need to come back to the market for more funding and
- have attractive operational gearing.
In our valuation:
- we assume a conservative 10% rev growth rate in FY23/FY24 (below both historical growth rates for CNS AND market forecasts
- We don't factor in any contribution from major new partnership agreements like the one from Akamai which should have a material impact
Our fair value is double the current share price
Full note here: https://www.equitydevelopment.co.uk/research/double-digit-arr-growth
Good numbers again this morning.
A little concerned on the growth in operating expenses - but unlike some of my other holdings I actually trust the BOD to make the rights calls both strategically and operationally.