Fusionex (LON:FXIF): FY16 results were ahead of forecast and sales momentum remained strong in the first four months of FY17. The next iteration of the platform, GIANT 2017 marks a step-change in usability and functionality and with a growing network of sales partners, this should underpin sustained revenue growth. This progress is not reflected in Fusionex’s EV/EBITDA rating which despite its higher margins, is the lowest in its peer group at 13x FY17e.
Results ahead of forecast; GIANT momentum strong
FY16 revenues increased 23% to MYR94.6m (6% ahead of our forecast) and EBITDA of MYR15.1m was more than double our forecast (from a compressed level), returning the group to a small net profit position. Sales of GIANT accelerated during Q4 to 115 customers (ahead of 90 targeted). The second iteration of the platform, which was configured for the SME market, is supporting ongoing strong momentum with 48 customers added in the first four months of the year and the pipeline is underpinned by a further 20 customers that are trialling GIANT 2017. Due to launch in the coming weeks, it offers a step-change in usability and functionality, adding natural language processing capabilities, additional drag and drop capabilities and third-party data sources, as well as an impressive array of analytics and algorithm-based forecasting tools which incorporate elements of machine learning.
To read the entire report Please click on the pdf File Below