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-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Jun 20
Dec 20
Jun 21
Dec 21
Jun 22
Dec 22
Jun 23
Dec 23
Jun 24
Dec 24
Jun 25
7.2x
Tech Insights #378
Cloud Index as at 30 June 2025
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
7 July 2025
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. After a weaker March quarter, both indices rebounded through June. The US Cloud Index increased to 7.2x EV/NTM revenue, up 19% from March, while the ANZ Cloud Index rose to 7.6x, an 11% lift over the quarter. The US Cloud index remains below its five-year average of 10.3x, while the ANZ Cloud Index finished above its five-year average of 7.4x.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
ANZ Cloud Index
Average
12MMA
Jun 25
7.6x
7.1x
Mar 25
6.8x
7.0x
Change
11%
1%
Jun 24
6.9x
6.2x
Change
10%
14%
US Cloud Index
Average
12MMA
Jun 25
7.2x
6.6x
Mar 25
6.1x
6.4x
Change
19%
3%
Jun 24
6.0x
6.3x
Change
21%
4%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (25 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (88 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.
Key:
US
ANZ
Average
12MMA
5yr avg
7.4x
7.6x
10.3x
-
5.0x
10.0x
15.0x
20.0x
Jun 20
Jun 21
Jun 22
Jun 23
Jun 24
Jun 25
-
10.0x
20.0x
30.0x
40.0x
Jun 20
Jun 21
Jun 22
Jun 23
Jun 24
Jun 25
75th percentile
Median
25th percentile
Tech Insights #378
Cloud Index as at 30 June 2025
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
7 July 2025
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
8.2x
5.4x
3.4x
11.4x
5.2x
2.8x
US cloud companies
25th
75th
30 Jun 2025
Average
percentile
Median
percentile
EV (NZD $m)
44,852
4,411
9,635
29,789
EV / NTM rev
7.2x
3.4x
5.4x
8.2x
Revenue growth (NTM)
14%
5%
13%
20%
EV / LTM rev
8.8x
3.8x
6.1x
10.0x
Revenue growth (LTM)
17%
9%
17%
25%
Operating margin
(1%)
(9%)
(0%)
11%
ANZ cloud companies
25th
75th
30 Jun 2025
Average
percentile
Median
percentile
EV (NZD $m)
8,174
704
1,844
12,471
EV / NTM rev
7.6x
2.8x
5.2x
11.4x
Revenue growth (NTM)
12%
4%
10%
19%
EV / LTM rev
9.1x
2.9x
5.7x
13.5x
Revenue growth (LTM)
10%
4%
8%
15%
Operating margin
26%
15%
30%
38%
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.
Tech Insights #377
Software margins
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Mergers & acquisitionsCorporate finance advisoryCapital raising
30 June 2025
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Overview
This Tech Insights report looks at margins for software/SaaS companies. We compare EBITDA, EBIT and net income margins for a group of global and ANZ software companies. There is a clear trend for most of these organisations between the three margins, with a step down from EBITDA to EBIT to net income. EBITDA is a good proxy for cash generation on average, but viewed in isolation, EBITDA can overstate cash generation for software companies with extensive capital expenditure.
Software company: margin analysis
(30%)
(20%)
(10%)
-
10%
20%
30%
40%
50%
60%
EBITDA margin
EBIT margin
Net income margin
Global companies
ANZ companies
D&A (100%)
Income tax (85%), Interest (10%), other (5%)
Example: Split in margins for Microsoft
-
5%
10%
15%
20%
25%
30%
Intangible asset amortisation
Leased asset depreciation
Physical asset depreciation
Tech Insights #377
Software margins
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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
30 June 2025
Depreciation & Amortisation as a portion of revenue (D&A margin)
-
5%
10%
15%
20%
25%
30%
<100m Rev
100m-500m Rev
500m-2b Rev
2b+ Rev
Median D&A margin for software companies
Overview
FactSet defined “packaged software” companies.
~700 companies.
Groupings split by LTM revenue.
Global companies
ANZ companies
D&A split out for NZ based companies
-
100
200
300
400
500
600
700
800
-
50
100
150
200
250
Tech Insights #376
Software company EBITDA
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Mergers & acquisitionsCorporate finance advisoryCapital raising
23 June 2025
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Overview
This Tech Insights report looks at EBITDA for software/SaaS companies. Earnings Before Interest, Tax, Depreciation & Amortisation (EBITDA) is used as a proxy for operating cash generated by a company. EBITDA isn’t a perfect indicator of cash generation/profitability, especially for companies with significant capital expenditure spend, but is a useful metric for understanding the financial performance of a company. This report looks at the 10 largest software companies and a group of ANZ based software companies, with the criteria shown on page two. Note, there may be differences in how FactSet calculates EBITDA for different companies.
Largest 10 software companies EBITDA (NZD $b)
ANZ software companies EBITDA (NZD $m)
Largest 10 software companies EBITDA margin
ANZ software companies EBITDA margin
Tencent
Oracle
IBM
Salesforce
SAP
Others
Microsoft
Xero
WiseTech
HUB24
Iress
Bravura
NZ based*
Others
*Serko, Vista, Gentrack, EROAD
-
10%
20%
30%
40%
50%
60%
5 years ago
Current
-
10%
20%
30%
40%
50%
60%
5 years ago
Current
Note: negative EBITDA margins are not shown
-
10x
20x
30x
40x
50x
60x
70x
2023
2024
2025
-
5x
10x
15x
20x
25x
30x
2023
2024
2025
Tech Insights #376
Software company EBITDA
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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
23 June 2025
Largest 10 software companies LTM EBITDA growth
ANZ software companies LTM EBITDA growth
Largest 10 software companies EV/LTM EBITDA
ANZ software companies EV/EBITDA
Criteria
Largest 10 software companies: Size based on EV, are identified as “packaged software” companies by FactSet.
ANZ software companies: Based in ANZ with an EV > NZD $200m and identified as “packaged software” companies by FactSet (18 companies).
Value weighted
Microsoft
Median
Xero
Value weighted
Median
-
10%
20%
30%
40%
50%
-
10%
20%
30%
40%
50%
+
+
Note: Serko had negative EBITDA in the previous period
-
100
200
300
400
FY21
FY22
FY23
FY24
Total Revenue
Gross profit
EBITDA*
Tech Insights #375
Tait Communications
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 June 2025
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Overview
Tait Communications is a Christchurch-based designer and manufacturer of radio communication products for emergency services and industry applications. Its shareholders are Japanese multinational JVCKenwood and majority owner the Tait Foundation - an initiative set up to support STEM education in New Zealand honouring founder Sir Angus Tait’s legacy. It has grown into a private business of considerable scale, driven recently through acquisitions. Page 1 gives a financial overview and page 2 dives into recent M&A activity including a proposed takeover of NZX-listed company Vital. Tait Communications’ June year-end financials are available through the New Zealand Companies Office.
Cash generation (NZD $m)
Profit and loss summary (NZD $m)
Debt funding profile (NZD $m)
Operations overview
RFI acquisition contributed to major step up in FY24.
-
10
20
30
40
FY21
FY22
FY23
FY24
Free cash flow to the firm(excl. acquisitions)
(60)
(40)
(20)
-
20
40
60
80
FY21
FY22
FY23
FY24
Total debt
Cash
Net debt
Strong cash generation and no debt could position Tait to debt fund acquisitions.
Broadband radio solutions
Worker safety technology
Voice and data systems
*presented after cash lease costs
Proposed takeover of Vital (NZX: VTL)
-
10
20
30
40
FY21
FY22
FY23
FY24
Revenue
EBITDA
Capital expenditure
Tech Insights #375
Tait Communications
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 June 2025
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Wired
Predominantly Auckland and Wellington based fibre optic networks for wholesale broadband connections.
Wireless
Mobile radio network for use cases in utilities and emergency services.Key customer: Vital service Hato Hone St John’s network for ambulances and event health services.
Operating segments
Takeover details
Proposed offer
Offer price (per share)
$0.45
Offer price (per employee option)
$0.13
Shares outstanding
41.5m
Option outstanding
1.1m
Total equity value
$18.8m
Select financials ($m)
RFI acquisition (Feb 2024)
Consideration
$m
Assets acquired & liabilities assumed
$m
Cash
45.9
Cash
16.5
Deferred payment
12.6
Inventory
37.3
Estimated earnout (assumed to be paid in full)
8.2
PPE
7.5
Other assets less liabilities assumed
9.7
Total consideration
66.7
Total identifiable assets
70.9
Tait Communications’ acquisition of RFI Technology showed a unique target asset base comprised of predominantly working capital items with the majority of the identifiable assets being inventory.
M&A history – other transactions
Sep 2014
Dec 2018
Feb 2025
Acquired Analogue & digital communications business and long-time partner SGM Telecomunicaçõcoes
Brazil
Acquired Video technology company m-View specialising in body-worn cameras
Australia
Sold 40% stake of Tait Communications to JVCKenwood
Japan
Disclaimer The information provided in this report has been sourced and calculated from the Companies Office, NZX and other sources. 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.
Tait Communications recognised a bargain purchase gain of $4.2m (identifiable assets less consideration).
Tait Communications has lodged notice of its intention to acquire all of the shares in NZX-listed company Vital. Tait’s deadline to make a formal offer is 4 July 2025.
Implied enterprise value
$m
Equity value
18.8
Bank loans
12.6
Bank overdraft
1.0
Cash
0.0
Total enterprise value (Net debt as at 31 Dec 2024)
32.4
Tech Insights #374
NZ D2R investment platforms
Mergers & acquisitions
Corporate finance advisory
Capital raising
9 June 2025
-
2
4
6
8
10
12
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
-
100
200
300
400
500
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
-
10
20
30
40
50
60
70
80
90
Mar 17
Mar 19
Mar 21
Mar 23
Mar 25
-
100
200
300
400
500
600
700
800
Mar 17
Mar 19
Mar 21
Mar 23
Mar 25
Page 1 of 2
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Overview
NZ Direct-to-retail (D2R) investment platforms, such as Sharesies and InvestNow, have revolutionised investing, making investing accessible to everyday individuals with smaller amounts of money. Since their respective launches, Sharesies and InvestNow have experienced significant growth, attracting new investors as well as competitor platforms such as Kernel and Hatch. This Tech Insights report analyses self-reported assets under administration (AUA) and account figures from each of the selected D2R platforms, charting their growth over time. We also explore valuation and other financial metrics from comparable transactions and publicly listed companies.
KiwiSaver members (000s)
Approx. 1% of Sharesies investor base are in their KiwiSaver scheme, suggesting upside potential.
KiwiSaver AUA (NZD $m)
Total platform AUA (NZD $b)
Investor accounts (000s)
Average investor balance ($000s)
InvestNow and Kernel have 30,000 and 20,000 accounts respectively.
Average KiwiSaver balance ($000s)
Sharesies
InvestNow
Hatch
Kernel
InvestNow was first to launch KiwiSaver. Data sourced from Morningstar surveys.
Average balance is interpolated from reported AUA and investor accounts.
-
1
2
3
4
Mar 17
Mar 19
Mar 21
Mar 23
Mar 25
-
20
40
60
80
100
120
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
Tech Insights #374
NZ D2R investment platforms
Mergers & acquisitions
Corporate finance advisory
Capital raising
9 June 2025
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Platform comparison
Launch date
Primary revenue model
Interest bearing
Managed funds (PIEs)
KiwiSaver
Equities
Major shareholders
Last transaction
Jun 17
Brokerage, exchange and subscription fees
Interest bearing savings account
13 funds across six managers
Managed fund and pick-and-mix NZ shares
NZ, AU and US shares and ETFs
Founders, TradeMe, Amplo, staff and others
$50m capital raise at $450m pre-money valuation (Jan22)
Mar 17
Management fees on AUA
Term deposits from six major banks
150+ diversified / single sector funds
40+ diversified / single sector funds
-
100% owned by Apex Group
Sold to Apex Group for an undisclosed sum (Nov22)
Sept 19
Management fees on AUA, exchange and subscription fees
Interest bearing savings account
25 in-house funds
18 in-house funds to choose from
US shares and ETFs only
Founders, Zino Ventures, staff and others
$3m capital raise at $42m pre-money valuation (Nov23)
Sept 18
Brokerage and exchange fees
-
-
-
US shares and ETFs only
75% FNZ and 25% Jarden
Acquired Jarden Direct for $50m cash and $30m in equity (Jul22)
Page 2 of 2
Disclaimer The information provided in this report has been sourced from FactSet and other public data. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Selected comparable valuation metrics (6 June, native currency)
Target/Company (Acquirer/Ticker)
Comparable type
Relevant date
Enterprise value (EV) ($m)
Assets under admin (AUA) ($bn)
Investor accounts (000s)
EV / AUA
EV / accounts
E*TRADE (Morgan Stanley)
Acquisition
20 Feb 2020
12,693
360
5,200
3.5%
2,441
Envestnet (Private Group)
Acquisition
11 Jul 2024
4,360
6,000
20,000
0.1%
218
Spaceship (eToro)
Acquisition
26 Sep 2024
80
2
200
5.3%
400
SelfWealth (Syfe)
Acquisition
7 May 2025
55
12
129
0.5%
426
Hatch (FNZ)
Acquisition
4 Oct 2021
40
2
130
2.0%
308
Charles Schwab (SCHW-US)
Listed company
As at 6 Jun
147,866
9,892
44,838
1.5%
3,298
Robinhood (HOOD-US)
Listed company
As at 6 Jun
64,805
221
25,800
29.3%
2,512
eToro (ETOR-US)
Listed company
As at 6 Jun
5,087
17
3,500
30.6%
1,454
Tiger Brokers (TIGR-US)
Listed company
As at 6 Jun
1,150
42
1,092
2.8%
1,053
Median (all)
2.8%
1,053
Average (all)
8.4%
1,345
IPO date
13 May 2025
IPO price (expected range)
$52 ($46 -$50)
Opening share price
$69.69 (34% ↑ IPO)
# shares (primary / secondary)
6.0m / 6.0m
# overallotment shares
1.8m
IPO proceeds
$713m
IPO valuation
$4.3b
2021 SPAC valuation (range)
$8.8b -$10.4b
Tech Insights #373
eToro IPO
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
26 May 2025
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This Tech Insights report looks at eToro, which had an oversubscribed IPO earlier this month (13 May). eToro operates a trading platform that allows users to trade stocks, cryptocurrencies and other assets, and has a social trading feature that allows users to replicate the strategies of top traders. eToro generates revenue primarily through trading fees charged on user transactions and interest earned from margin positions and uninvested funds. eToro initially tried to list via a special purpose acquisition company (SPAC) in 2021, but the deal fell through. This report analyses eToro’s performance to date and compares it with other listed trading platforms.
Overview
ETOR:NASDAQ IPO details
Active users by region (Dec 24)
70%
16%
10%
4%
Europe and UK
Asia Pacific
Americas
Middle East and Africa
Active users
(Dec 24)
3.5m
-
1
2
3
4
Mar 22
Sept 22
Mar 23
Sept 23
Mar 24
Sept 24
eToro has over 40m registered users, however only 3.5m users are active (funded accounts).
Active users (millions)
Assets under administration (USD $b)
5.8
9.6
16.6
-
5
10
15
20
Dec 22
Dec 23
Dec 24
Average trade size (USD $)
Number of trades per quarter (millions)
-
100
200
300
400
Q1
Q2
Q32022
Q4
Q1
Q2
Q32023
Q4
Q1
Q2
Q32024
Q4
Equities, currencies & commodities
Crypto
50
100
150
200
Q1
Q2
Q32022
Q4
Q1
Q2
Q32023
Q4
Q1
Q2
Q32024
Q4
Equities, currencies & commodities
Crypto
Q3
Q3
Q3
2022
2023
2024
Q3
Q3
Q3
2022
2023
2024
Source
SPAC investor presentation
IPO prospectus
Tech Insights #373
eToro IPO
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
26 May 2025
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Disclaimer The information provided in this report has been sourced from FactSet and other 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.
Trading platform company metrics (USD $m)
eToro net revenue by segment (USD $m)
Company
IPO date
Enterprise value
LTM revenue
LTM revenue growth
EBITDA margin
Revenue multiple
EBITDA multiple
LTM share price Δ
Share price Δ since IPO
First-day return (IPO pop)
Coinbase
Apr 2021
67,636
6,914
48%
25%
9.8x
38.9x
20%
5%
31%
Interactive Brokers
May 2007
55,065
9,528
15%
85%
5.8x
6.8x
66%
588%
4%
Robinhood
Jul 2021
53,923
3,278
60%
42%
16.5x
39.5x
228%
66%
(8%)
Futu
Mar 2019
14,735
1,742
36%
61%
8.5x
13.8x
51%
831%
28%
eToro
May 2025
4,835
837
42%
36%
5.8x
15.9x
-
26%
29%
Tiger Brokers
Mar 2019
1,327
392
44%
38%
3.4x
9.0x
115%
9%
37%
Median
34,329
2,510
43%
40%
7.1x
14.9x
66%
46%
28%
eToro annual net revenue (USD $m) and EBITDA margin*
67%
55%
42%
11%
10%
25%
13%
26%
23%
8%
9%
10%
-
200
400
600
800
2022
2023
2024
eToro Money,subscriptions & other
Net interest
Net trading (crypto)
Net trading (equities,currencies & commodities)
December year end.
(17%)
40%
50%
4%
17%
(7%)
20%
36%
(20%)
-
20%
40%
60%
80%
(200)
-
200
400
600
800
2016
2017
2018
2019
2020
2022
2023
2024
Net revenue (LHS)
EBITDA margin (RHS)
*EBITDA margin includes net interest on users’ funds.
18%
29%
28%
22%
23%
23%
19%
22%
30%
31%
-
10%
20%
30%
40%
50%
60%
FY21
FY22
FY23
FY24
FY25
Revenue growth
EBITDA margin
Tech Insights #372
Xero 2025
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
19 May 2025
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Overview
NZ accounting software provider Xero recently published its financial results for FY25. Revenue growth of 23% and an EBITDA margin of 31% maintain Xero’s status as a top performing tech company. It’s also notable that Xero posted NZD $2b in revenue for the first time and is the highest valued New Zealand company that is listed. On page two we compare Xero to a group of global accounting software providers.
Xero valuation multiple
Xero revenue (NZD $m)
-
1
2
3
4
FY21
FY22
FY23
FY24
FY25
RoW
North America
UK
NZ
AUS
-
500
1,000
1,500
2,000
FY21
FY22
FY23
FY24
FY25
Xero subscribers (millions)
Xero rule of 40
-
10x
20x
30x
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Jan 25
EV/Revenue
March year end
56% of FY25 revenue is from ANZ
-
50%
100%
150%
200%
250%
2020
2021
2022
2023
2024
2025
Tech Insights #372
Xero 2025
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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
19 May 2025
Share price index for listed accounting software providers
Comparator metrics for listed accounting software providers (NZD $m)
Company
Based
Description
EV
Revenue
5 yr revenue growth
LTM revenue growth
LTM EBITDA
EV/LTM Revenue
EV/LTM EBITDA
Intuit
USA
Financial management and accounting software (QuickBooks).
330,579
28,610
164%
16%
28%
12x
41x
Workday
USA
Cloud-based financial and HR management software.
116,811
14,026
155%
19%
10%
8x
86x
Sage
UK
Cloud-based financial and HR management software.
30,543
5,205
36%
12%
25%
6x
23x
Xero
NZ
Cloud-based accounting for small businesses.
29,304
2,103
193%
23%
31%
14x
45x
Median
73,677
9,616
159%
18%
27%
10x
43x
EV = Enterprise Value, LTM = Last 12 months, EBITDA= Earnings Before Interest, Taxes, Depreciation & Amortisation
Overview
The 'Rule of X' is emerging as a modern adaptation of the widely recognised 'Rule of 40' for SaaS businesses, offering an updated approach to assess performance. The Ruleof 40 is a benchmark where the sum of a company's revenue growth rate and free cash flow margin should equal or exceed 40%. Developed by Bessemer Venture Partners (BVP), the Rule of X adopts a more nuanced evaluation, emphasising growth over profitability.
The tables below show how the Rule of X and Rule of 40 are calculated for selected US-listed cloud companies, along with average values for the top, middle, and bottom 28 companies (by EV / NTM revenue) out of a group of 84 US-listed cloud companies.
Tech Insights #371
The Rule of X
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Rule of X = (annual revenue growth x multiplier) + free cash flow margin
Rule of 40 = annual revenue growth + free cash flow margin
Selected company
Revenue growth (LTM)
FCF margin (LTM)
Rule of 40
Rule of X multiplier
Rule of X
EV / NTM revenue
Autodesk
13%
22%
35%
2.0
48%
9.5x
Gitlab
32%
(15%)
17%
2.0
49%
9.3x
Smartsheet
19%
20%
39%
2.0
57%
5.7x
Braze
28%
1%
29%
2.0
58%
5.7x
Zoom Communications
3%
37%
40%
2.0
43%
3.8x
Sprout Social
22%
6%
27%
2.0
49%
3.7x
All companies (n=84)
Revenue growth (LTM)
FCF margin (LTM)
Rule of 40
Rule of X multiplier
Rule of X
EV / NTM revenue
Top 28 companies (average)
24%
20%
44%
2.0
67%
11.0x
Middle 28 companies (average)
17%
18%
35%
2.0
51%
6.2x
Bottom 28 companies (average)
11%
12%
23%
2.0
33%
2.8x
Average
17%
16%
34%
2.0
51%
6.6x
vs
Rule of X: BVP good, better, best framework
Best
~70%
Better
~50%
Good
~40%
Note: FCF = Free cash flow, EV = Enterprise value, LTM = Last 12 months, NTM = Next 12 months.
R² = 0.4758
R² = 0.398
0x
2x
4x
6x
8x
10x
12x
14x
16x
18x
-
20%
40%
60%
80%
100%
EV / NTM revenue
X value = (revenue growth rate x multiplier) + free cash flow margin
Comparing the correlation of the Rule of X against the Rule of 40 as at 31 December 2024
Calculating the Rule of X by applying a 2.0 multiplier to the LTM revenue growth of US-listed cloud companies resulted in a higher R2 correlation compared to using no multiplier (i.e. the Rule of 40) as at 31 December 2024. However, it should also be noted that both correlations are below 0.5, and performing the same analysis for different historical periods shows this relationship can (and does) move around over time.
Tech Insights #371
The Rule of X
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Rule of X
Rule of 40
Rule of 40
40%+ is good
Rule of X
70%+ is best
using a 2.0 multiplier
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.
Note: We have removed certain outliers from the calculations: where revenue growth is above 100%, the revenue multiple is above 40x, or the Rule of 40 is negative.
17%
43%
12%
-
200
400
600
Amazon
Microsoft
Alphabet
USD $b
Tech Insights #370
Cloud infrastructure platforms
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This Tech Insights report looks into market leading cloud infrastructure platforms: AWS, Azure and Google Cloud. These platforms are operated by tech giants Amazon, Microsoft and Alphabet. AWS (Amazon Web Services) was the first to enter the market in 2006. Although Amazon and Microsoft began as an online bookstore and a software company respectively, their cloud platforms now account for a substantial share of their operating profits. Complementary cloud services and enterprise support services are included in the financials presented below.
Overview
Cloud platform contribution to total operating profit (Dec 24)
Cloud platform contribution to total revenue (Dec 24)
Annual cloud platform revenue
Cloud platform operating profit margins
58%
45%
5%
-
40
80
120
Amazon
Microsoft
Alphabet
USD $b
-
40
80
120
Dec 21
Dec 22
Dec 23
Dec 24
USD $b
AWS(Amazon)
Azure(Microsoft)
Google Cloud(Alphabet)
(20%)
-
20%
40%
60%
Dec 21
Dec 22
Dec 23
Dec 24
AWS(Amazon)
Azure(Microsoft)
Google Cloud(Alphabet)
Tech Insights #370
Cloud infrastructure platforms
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Leading cloud platform company metrics (USD $b)
Count of cloud platform related acquisitions by parent
Company
Ticker
Cloud product
Cloud launch year
Enterprise value
LTM total
revenue
LTM revenue growth
EBITDA margin
Revenue multiple
EBITDA multiple
LTM share price Δ
Amazon
AMZN-US
AWS
2006
2,068
650
10%
20%
3.2x
16.2x
3%
Microsoft
MSFT-US
Azure
2010
3,261
270
14%
56%
12.1x
21.5x
9%
Alphabet
GOOGL-US
Google Cloud
2008
1,924
359
13%
37%
5.4x
14.4x
(2%)
Oracle
ORCL-US
Oracle Cloud
2016
502
56
6%
43%
9.0x
21.1x
31%
IBM
IBM-US
IBM Cloud
2011
278
63
1%
25%
4.4x
17.5x
49%
Alibaba
BABA-US
Alibaba Cloud
2009
268
136
4%
17%
2.0x
11.5x
57%
Median
1,213
203
8%
31%
4.9x
16.8x
20%
Aggregate market capitalisation
-
2
4
6
8
10
Apr 16
Oct 17
Apr 19
Oct 20
Apr 22
Oct 23
Apr 25
USD $tn
IBM
Oracle
Alibaba
Alphabet
Microsoft
Amazon
-
2
4
6
2020
2021
2022
2023
2024
Amazon
Microsoft
Alphabet
-
500
1,000
Services
Semiconductor USD $b
2015 (10 years ago)
2020 (5 years ago)
Now
-
1,000
2,000
3,000
4,000
5,000
Internet Semiconductor Communications USD $b
2015 (10 years ago)
2020 (5 years ago)
Now
Tech Insights #369
Listed tech industries – US vs Europe
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This Tech Insights report compares the market capitalisation and share price returns of listed major technology industries in the United States (US) and Europe, including the UK. Company regions are determined by the location of their headquarters (legal domicile), rather than by their exchange listing, and industries are classified according to RBICSsub-sectors. The data includes currently listed companies in each of the two regions. All analysis is presented in USD.
Overview
United States: Aggregate market capitalisation of selected tech industries (USD $b)
Industry
Software
Internet and Data Services
Semiconductor Manufacturing
Communications Equipment
Largest company (now)
Microsoft (55%)
Alphabet (42%)
NVIDIA (60%)
Apple (87%)
# companies (now)
246
104
49
42
Europe: Aggregate market capitalisation of selected tech industries (USD $b)
Industry
Software
Internet and Data Services
Semiconductor Manufacturing
Communications Equipment
Largest company (now)
SAP (68%)
Spotify (29%)
Arm (48%)
Garmin (35%)
# companies (now)
309
93
26
44
Tech Insights #369
Listed tech industries – US vs Europe
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Disclaimer The information provided in this report has been sourced 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.
LTM Software returns (top 15)
LTM Semiconductor Manufacturing returns (top 15)
LTM Internet and Data Services returns (top 15)
LTM Communications Equipment returns (top 15)
The industry returns below are calculated as weekly, market capitalisation-weighted total returns, using the 15 largest companies (as at the beginning of the period) in both the United States and Europe.
LTM market capitalisation-weighted total returns
United States
Europe
Key:
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
(40%)
(20%)
-
20%
40%
60%
Apr 24
Jun 24
Aug 24
Oct 24
Dec 24
Feb 25
Apr 25
-
50
100
150
200
250
300
350
400
2019
2020
2021
2022
2023
2024
Other
Marketplaces
Jobs
Property
Motors
Tech Insights #368
Potential Trade Me relisting
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Overview
Trade Me was taken private by Apax Partners in 2019, with average annual EBITDA growth since the acquisition of 6.5%. There has recently been rumours of Apax Partners’ intention to divest, which raises the possibility of a public listing (among other exit options). This Tech Insights report highlights Trade Me’s growth since the 2019 acquisition and looks at how Trade Me could be positioned relative to comparator NZX and ASX companies were it to list. Note, Trade Me has a June financial year end.
Trade Me revenue - NZD $m
% of revenue by segment
29%
34%
17%
29%
11%
10%
28%
20%
15%
7%
-
20%
40%
60%
80%
100%
2020
2024
Other
Marketplaces
Jobs
Property
Motors
Revenue growth rate
EBITDA
-
10%
20%
30%
40%
50%
60%
70%
-
50
100
150
200
250
300
2019
2020
2021
2022
2023
2024
EBITDA margin
EBITDA – NZD $m
classifieds
58%
73%
*Split of classifieds based on half year results
*
(5%)
-
5%
10%
15%
2019
2020
2021
2022
2023
2024
-
5,000
10,000
15,000
20,000
25,000
30,000
REA
Xero
CAR
TechnologyOne
Seek
Trade Me
Trade Me
HUB24
Trade Me
Domain
SiteMinder
Vista
Tech Insights #368
Potential Trade Me relisting
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Disclaimer The information provided in this report has been sourced and calculated from FactSet and the NZ Companies Office. 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
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Company
Description
EV
Revenue
5yr revenue growth
LTM rev growth
LTM EBITDA margin
EV/LTM Revenue
EV/LTM EBITDA
REA
Online real estate advertising platform.
33,488
1,977
106%
21%
47%
17x
36x
Xero
Cloud-based accounting software provider.
24,945
1,909
201%
24%
33%
13x
39x
CAR
Automotive research and review marketplace.
14,402
1,251
199%
18%
52%
12x
22x
Technology One
Enterprise software solutions provider.
9,536
549
82%
18%
43%
17x
41x
Seek
Online job search and employment platform.
9,304
1,116
(36%)
(14%)
38%
8x
22x
HUB24
Investment and superannuation platform.
5,738
399
267%
24%
33%
14x
44x
Domain
Real estate listings and property website.
2,946
443
42%
13%
36%
7x
18x
SiteMinder
Hotel booking and management system.
1,009
222
117%
20%
2%
5x
283x
Vista
Film industry software solutions and analytics.
830
150
4%
5%
16%
6x
35x
Median
9,304
549
106%
18%
36%
12x
36x
Trade Me*
NZ's largest online marketplace and auction site.
370
38%
3%
65%
Trade Me listed comparators on ASX/NZX – NZD $m
Potential Trade Me valuation - NZD $m
35x EBITDA multiple
Note: Trade Me was acquired by Apax Partners at a 15.3x EBITDA multiple.
25x EBITDA multiple
15x EBITDA multiple
*Trade Me financials are as at June 2024
Graph provides three valuations for Trade Me using different EBITDA multiples.
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Mar 20
Sept 20
Mar 21
Sept 21
Mar 22
Sept 22
Mar 23
Sept 23
Mar 24
Sept 24
Mar 25
Tech Insights #367
Cloud Index as at 31 March 2025
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. Although the March quarter began with an uplift in revenue multiples, by the end of the quarter the, US Cloud Index fell to 6.1x EV/NTM revenue, while the ANZ Cloud Index declined to 6.8x — representing a 13% and 9% drop respectively over the quarter. Both indices remain below their five-year average.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
ANZ Cloud Index
Average
12MMA
Mar 25
6.8x
7.0x
Dec 24
7.5x
6.7x
Change
10%)
4%
Mar 24
7.1x
6.0x
Change
(5%)
18%
US Cloud Index
Average
12MMA
Mar 25
6.1x
6.4x
Dec 24
7.0x
6.3x
Change
(13%)
1%
Mar 25
6.7x
6.3x
Change
(9%)
2%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (25 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (89 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.
Key:
US
ANZ
Average
12MMA
5yr avg
6.8x
6.1x
7.4x
10.6x
-
5.0x
10.0x
15.0x
20.0x
Mar 20
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
-
10.0x
20.0x
30.0x
40.0x
Mar 20
Mar 21
Mar 22
Mar 23
Mar 24
Mar 25
75th percentile
Median
25th percentile
Tech Insights #367
Cloud Index as at 31 March 2025
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
7.6x
5.0x
2.9x
10.0x
5.1x
3.2x
US cloud companies
25th
75th
31 Mar 2025
Average
percentile
Median
percentile
EV (NZD $m)
39,309
4,090
9,105
27,182
EV / NTM rev
6.1x
2.9x
5.0x
7.6x
Revenue growth (NTM)
13%
5%
12%
21%
EV / LTM rev
7.5x
3.3x
5.9x
9.4x
Revenue growth (LTM)
17%
9%
16%
24%
Operating margin
(2%)
(10%)
(0%)
11%
ANZ cloud companies
25th
75th
31 Mar 2025
Average
percentile
Median
percentile
EV (NZD $m)
7,017
732
1,518
9,744
EV / NTM rev
6.8x
3.2x
5.1x
10.0x
Revenue growth (NTM)
16%
6%
16%
25%
EV / LTM rev
8.4x
3.8x
6.0x
11.6x
Revenue growth (LTM)
16%
8%
17%
26%
Operating margin
24%
13%
28%
38%
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.
158
146
111
19
25
27
0
100
200
2016
2020
2024
Tech Insights #366
The Warehouse vs Kmart
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The Warehouse and Kmart are two of New Zealand’s largest bargain retail chains. This Tech Insights report compares the performance of these two chains. Kmart, owned by ASX-listed Wesfarmers, has been performing strongly against The Warehouse, supported by the success of the Anko brand. Anko products represent ~85% of Kmart products sold, which supports Kmart’s high gross profit margins and operating profit margins (44% and 16% in FY24). The analysis on page 1 compares The Warehouse (excluding Noel Leeming and TheMarket.com) and Kmart New Zealand only. The financial year-end is July for The Warehouse and June for Kmart.
Overview
Revenue comparison (NZD $m)
Revenue per store (NZD $m)
-
500
1,000
1,500
2,000
2,500
FY20
FY21
FY22
FY23
FY24
Operating profit comparison (margin RHS)
41 co-located stores
Store count
Due to a shift in strategy, many Warehouse Stationery stores have now been integrated into The Warehouse, resulting in a reduced number of stores.
-
10
20
30
40
2016
2020
2024
Operating profit is equal to EBIT pre IFRS 16 (leases).
The Warehouse
Warehouse Stationery
Kmart NZ
Key:
2016
2020
2024
Operating profit (NZD $m)
2016
2020
2024
6%
11%
5%
4%
2%
8%
13%
9%
11%
16%
-
10%
20%
-
50
100
150
200
FY20
FY21
FY22
FY23
FY24
Operating profit margin
The Warehouse
Noel Leeming
$3.0b
-
25%
50%
75%
100%
Warehouse Group
Tech Insights #366
The Warehouse vs Kmart
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Annual parent segment revenue (NZD $b)
Share price index (total return)
Selected comparable company metrics (NZD $m)
Company
Exchange
Description and brands
Enterprise Value
LTM
revenue
LTM rev growth
LTM EBITDA
margin %
EV / EBITDA
1 yr share price Δ
Wesfarmers
ASX
Kmart, Target, Bunnings and others
101,993
48,931
3%
13%
15.8x
6%
JB Hi-Fi
ASX
Consumer electronics and home appliances
11,585
11,016
6%
10%
10.5x
48%
Harvey Norman
ASX
Consumer electronics, furniture and home appliances
9,196
4,330
2%
21%
10.0x
(1%)
Super Retail Group
ASX
Macpac, Rebel Sport (AU), Supercheap Auto and others
4,295
4,329
3%
18%
5.4x
(19%)
Myer Holdings
ASX
Department store
2,676
2,871
(2%)
13%
7.1x
(18%)
Briscoe Group
NZX
Briscoes and Rebel Sport (NZ)
1,081
791
(0%)
18%
7.7x
(7%)
Warehouse Group
NZX
The Warehouse, Warehouse Stationery and Noel Leeming
1,009
3,012
(4%)
7%
5.1x
(42%)
KMD Brands
NZX
Kathmandu, Rip Curl and other brands
617
982
(4%)
14%
4.6x
(38%)
Kogan.com
ASX
Online retail marketplace (Kogan.com and Mighty Ape)
470
527
5%
9%
10.5x
(40%)
Median
2,676
3,012
2%
13%
7.7x
(18%)
Kmart NZ
Kmart AU
Bunnings (AU & NZ)
Health
Other
$47.6b
-
25%
50%
75%
100%
Wesfarmers
-
50%
100%
150%
200%
250%
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Jan 25
Wesfarmers (Kmart parent)
Warehouse Group
Wesfarmers
(Kmart parent)
-
20
40
60
80
100
120
FY20
FY21
FY22
FY23
FY24
Gross profit
EBITDA
26% gross profit margins, 12% EBITDA margins.
Tech Insights #365
Hellers – New Zealand’s Butcher
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Overview
Christchurch-based butcher Hellers has grown into a large Trans-Tasman business with a major supermarket presence and iconic Leigh Hart commercials. In 2019, Hellers was acquired by a group lead by Australian private equity firm Adamantem Capital from majority owner Rangatira. Adamantem Capital aim for holding periods of three to five years for businesses, driving media speculation around potential exit opportunities. Page 2 explores the performance of their investment and what an exit might look like.
Profitability (NZD $m)
Revenue by geography (NZD $m)
-
100
200
300
400
FY20
FY21
FY22
FY23
FY24
Australia
New Zealand
A mix of organic growth and Canon Foods acquisition.
Debt funding profile (NZD $m)
-
2x
4x
6x
8x
10x
12x
14x
-
50
100
150
200
250
300
350
FY20
FY21
FY22
FY23
FY24
Net debt / EBITDA
Total debt
Bank debt
Shareholder loan
Net debt to EBITDA
Investment behaviour (NZD $m)
-
100
200
300
400
500
-
10
20
30
40
50
FY20
FY21
FY22
FY23
FY24
Book value
Cash invested
Investment in PPE
Acquisitions
Total assets (RHS)
Major investment in production capability has driven growth.
*June financial year
Tech Insights #365
Hellers – New Zealand’s Butcher
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Listed A/NZ comparable companies (NZD $m)
Equity outflows / (inflows) (NZD $m)
Company
Sector
EV / EBITDA
EV
Revenue
(LTM)
EV / Revenue
Revenue growth
Gross profit margin
EBITDA margin
Inghams
Poultry processor
8.3x
3,861
3,524
1.1x
2%
18%
13%
Scales
Horticulture & petfood
7.9x
704
592
1.2x
3%
22%
15%
Ricegrowers
Rice processor
5.9x
957
2,031
0.5x
4%
13%
8%
Sanford
Seafood farming & processing
5.8x
705
583
1.2x
5%
22%
21%
Tegel
Poultry processor
8.0x
578
620
0.9x
4%
24%
12%
Hellers
Meat & poultry processor
419
5%
27%
12%
While not perfect comparisons, listed A/NZ comps with similar growth and profitability profiles give a reference point for a potential exit multiple. Tegel was acquired via a takeover by Bounty Foods in 2018 and shows similar metrics, scale and geographies to Hellers. Note: Tegel financials LTM as at 2018 acquisition.
Disclaimer The information provided in this report has been sourced and calculated from FactSet, Hellers’ financials and other 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.
EV uplift – Adamantem investment to potential exit
This profile of cash flows from Hellers’ cash flow statements are combined with illustrations of exit returns if Hellers is sold at a 6x, 8x, and 10x EV / EBITDA.
(100)
(50)
-
50
100
150
200
250
Acquisition
FY19
FY20
FY21
FY22
FY23
FY24
Exit (6x)
Exit (8x)
Exit (10x)
Equity investment
Buyback / dividend
Shareholder loan
Exit
Hellers has grown from the $212m EV when Adamantem acquired it. Exits at 6x, 8x, and 10x EV / EBITDA show materially different outcomes for the equity owners (equity IRRs based on cash flows highlighted in right chart).
-
100
200
300
400
500
Initial investment
6x EBITDA
8x EBITDA
10x EBITDA
Bank debt
Shareholder loan
Equity
-6% IRR
16% IRR
25% IRR
Note: EBITDA adjusted for IFRS-16 impacts.
Potential
Potential
Tech Insights #364
Advertising revenue
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
17 March 2025
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Overview
This Tech Insights report looks at the advertising revenue generated by tech companies. Of particular note is Alphabet (Google and YouTube) which generates more revenue from advertising than New Zealand’s GDP. It’s also interesting to compare smaller tech companies that have advertising heavy business models (Reddit, Yelp, Snap and Pinterest) to a traditional player in the advertising market (Fox). The second page tracks share price performance and comparator metrics for a selection of these companies.
Major tech companies - advertising revenue
Other companies - advertising revenue
-
100
200
300
400
500
600
Alphabet
Meta
Amazon
Microsoft
Revenue USD $b
Other revenue
Advertising revenue
-
2
4
6
8
10
12
14
16
Fox
Snap
Spotify
Yelp
Revenue USD $b
Other revenue
Advertising revenue
Tech Insights #364
Advertising revenue
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
17 March 2025
Comparator metrics for tech companies that generate a majority of revenue from advertising (USD $b)
Company
Description
EV
Revenue
Advertising revenue %
5yr revenue growth (2024 vs 2019)
LTM EBITDA margin
EV/LTM Revenue
EV/LTM EBITDA
Alphabet
Operates Google and YouTube
1,992
350
76%
117%
36%
6x
16x
Meta
Facebook, Instagram, WhatsApp
1,560
165
98%
133%
52%
9x
18x
Online forum for discussion
21
1
91%
No data
(42%)
16x
nm
Pinboard-style photo-sharing website
20
4
100%
219%
6%
5x
99x
Snap
Snapchat (text and photo based messaging)
15
5
100%
213%
(12%)
3x
nm
Yelp
User generated reviews of local businesses
2
1
96%
39%
15%
2x
10x
Median
21
5
97%
133%
10%
6x
17x
Share price index - tech companies that generate a majority of revenue from advertising
-
100%
200%
300%
400%
2020
2021
2022
2023
2024
2025
Snap
Yelp
Alphabet
Reddit*
Meta
*Publicly listed in 2024
Tech Insights #363
Revenue multiples and growth rates
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Mergers & acquisitionsCorporate finance advisoryCapital raising
10 March 2025
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This Tech Insights report looks at drivers of revenue multiples (EV / LTM revenue). Revenue growth rate is a key determinant of a revenue multiple however profitability and scale are also important factors. This report analyses a universe of 35 selected ASX and NZX-listed technology companies.
Overview
Revenue multiple vs LTM revenue growth for technology companies
EROAD
Bravura
CAR Group
Computershare
HUB24
Infomedia
Nuix
Netwealth
Objective Corporation
ReadyTech
Seek
Technology One
Domain
REA
WEB Travel
Wisetech
Xero
Gentrack Group
Serko
Enprise Group
ikeGPS
Life360
Dropsuite
DUG
Hansen
IRESS
Megaport
Praemium
Qoria
SiteMinder
Straker
Gumtree
3P Learning
Bigtincan
Vista Group
5x
10x
15x
20x
25x
30x
35x
(20%)
(10%)
-
10%
20%
30%
40%
EV / LTM revenue multiple
LTM revenue growth
>25% EBITDA margin
<25% EBITDA margin
Bubble size represents current EV (NZD)
<$2b
$10b
$30b
Key:
Wisetech is currently valued on a 32x revenue multiple (EV of $32b). LTM revenue growth was 20% and LTM EBITDA margin was 50%.
All companies trading on a multiple higher than 10x have an EBITDA margin greater than 25%.
Tech Insights #363
Revenue multiples and growth rates
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Mergers & acquisitionsCorporate finance advisoryCapital raising
10 March 2025
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Revenue multiples by LTM revenue growth
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.
Comparison of selected companies (now vs Mar 2020)
n = 15
n = 11
n = 9
-
5x
10x
15x
20x
<10%
10% - 20%
20%+
LTM revenue growth
Upper quartile (50% - 75%)
Lower quartile (25% - 50%)
EV (NZD $m)
LTM revenue growth
EBITDA margin (%)
Revenue multiple
2020
Now
2020
Now
2020
Now
2020
Now
REA
10,721
▲
35,069
(3%)
▲
21%
54%
▼
47%
11.1x
▲
17.7x
Wisetech
5,397
▲
32,428
40%
▼
20%
30%
▲
50%
12.9x
▲
32.2x
Xero
9,882
▲
27,300
37%
▼
24%
19%
▲
33%
13.8x
▲
14.3x
Computershare
8,002
▲
26,666
10%
▼
6%
26%
▲
38%
2.3x
▲
5.4x
CAR Group
3,432
▲
16,052
12%
▲
17%
51%
▲
52%
7.6x
▲
12.8x
Seek
7,091
▲
10,447
16%
▼
(12%)
26%
▲
39%
4.1x
▲
9.4x
Technology One
2,576
▲
10,182
13%
▲
18%
31%
▲
43%
8.3x
▲
18.5x
Netwealth
1,578
▲
7,373
20%
▲
23%
52%
▼
49%
14.0x
▲
24.2x
HUB24
483
▲
6,627
12%
▲
23%
17%
▲
33%
4.4x
▲
16.6x
Domain
1,430
▲
3,279
(17%)
▲
12%
31%
▲
36%
4.6x
▲
7.4x
14
7
19
23
12
20
23
21
9
33
29
21
42
14
34
36
40
40
35
40
46
52
60
77
84
90
-
20
40
60
80
100
120
140
Dec 21
Mar 22
Jun 22
Sept 22
Dec 22
Mar 23
Jun 23
Sept 23
Dec 23
Mar 24
Jun 24
Sept 24
Dec 24
Spacesystems
Launchservices
Mar 2020
Acquired satellite hardware company Sinclair Interplanetary for USD $17m
Jan 2022
Acquired space solar power technology company SolAero for USD $80m
-
50
100
150
200
250
Nov 20
Feb 21
May 21
Aug 21
Nov 21
Feb 22
May 22
Aug 22
Nov 22
Feb 23
May 23
Aug 23
Nov 23
Feb 24
May 24
Aug 24
Nov 24
Feb 25
Tech Insights #362
Rocket Lab: from Māhia to the moon
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Mergers & acquisitionsCorporate finance advisoryCapital raising
3 March 2025
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Quarterly revenue by segment (USD $m)
Indexed share price since IPO via SPAC merger
Timeline of notable events
2025
Medium-lift rocket Neutron (compete with SpaceX’s Falcon 9) is planned to debut in 2025
Jun 2006
Founded in Auckland,
New Zealand
by Sir Peter Beck
Nov 2009
Launched sounding rocket Ātea-1 (first private company in the Southern Hemisphere to reach space)
2013
HQ moved from Auckland, NZ to California, US
May 2017
Small rocket Electron ‘It’s a Test’ flight successfully makes it to space
Acquired space software and mission simulation company Advanced Solutions for USD $46m
Oct 2021
Acquired satellite hardware company Planetary Systems for USD $80m
Dec 2021
Rocket Lab goes public via a SPAC merger, gross proceeds to Rocket Lab totalled USD $777m
Aug 2021
Rocket Lab, founded in 2006 by Sir Peter Beck, provides launch services, and space systems, which includes the design and manufacturing of satellites and spacecraft parts. The company’s Electron rocket, designed for small satellite launches, was the fastest commercially developed rocket to surpass 60 successful missions, outpacing SpaceX’s Falcon 9. It operates from launch sites in New Zealand and the US, serving commercial and government clients. Rocket Lab is currently developing its Neutron rocket to compete with Falcon 9 on cost per kilogram to low earth orbit (LEO).
Overview
Entered and grown space systems segment via acquisitions (see timeline below).
The share price fell by 10% after short seller Bleecker Street’s Research report claiming Rocket Lab’s 2025 Neutron launch was 'impossible’.
28 Feb EV = $10.4bn
5.5
8.1
6.7
7.1
7.8
6.5
9.2
7.5
7.0
5.7
-
2
4
6
8
10
2020
2021
2022
2023
2024
FY23
FY24
Tech Insights #362
Rocket Lab: from Māhia to the moon
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Disclaimer The information provided in this report has been sourced and calculated from company reports, FactSet, and Space.com. 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
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High-level profit & loss (USD $m)
Rocket Lab revenue per launch and cost per launch (USD $m)
0.3
13
18
-
5
10
15
20
Tonnes
Cost per launch: Rocket Lab versus SpaceX
Number of launches per calendar year: Rocket Lab versus SpaceX
Target price per launch
Payload to LEO
Cost per tonne to LEO
Electron (Rocket Lab)
Neutron (Rocket Lab)
Falcon 9 (SpaceX)
7
6
9
10
16
26
31
61
98
138
-
40
80
120
160
2020
2021
2022
2023
2024
28
4
4
-
5
10
15
20
25
30
USD 000s
8
53
70
-
20
40
60
80
USD $m
(189)
(174)
(132)
(229)
(91)
311
125
(179)
(119)
(110)
(129)
(64)
173
72
Loss before tax
R&D
SG&A
Space systems COS
Launch services COS
Space systems revenue
Launch services revenue
-
100
200
300
400
Feb 17
Feb 18
Feb 19
Feb 20
Feb 21
Feb 22
Feb 23
Feb 24
Feb 25
-
20%
40%
60%
80%
100%
FY22
FY23
FY24
FY25*
Subscriptions
Total grossmargin
Hardware andother
Transactions
Tech Insights #361
ikeGPS: an eye on the poles
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Mergers & acquisitionsCorporate finance advisoryCapital raising
24 February 2025
Overview
This week’s Tech Insights report looks at ikeGPS (IKE), which listed on the NZX in 2014. IKE provides data collection, analysis, and management solutions for utility poles and overhead infrastructure, serving utilities, engineering firms, and communications companies. IKE’s revenue primarily comes from subscriptions to its platform and billable transactions based on how much customers use the software to engineer network assets. On 7 February, IKE announced it received an acquisition approach from a private equity group in late 2024 for NZD $1.00 per share. This presented a 62% premium to IKE’s closing price on 6 February. Its share price closed on 7 February at $0.82.
Revenue by segment (NZD $m)
Gross margin by segment
Products and services
*includes three quarters of actuals for 2025 annualised
Indexed weekly share price since February 2017
7 Feb
post $1.00 offer announced
share price NZD $0.82
5 Feb
pre $1.00 offer announced
share price NZD $0.62
Hardware
IKE device
Sale of IKE device and related accessories.
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Transactions
IKE Analyse
Back-end analysis to accelerate engineering processes.
IKE Insight
AI predictive analytics for network distribution planning.
Subscriptions
IKE Office Pro
Cloud software that interprets pole data from the IKE Device.
IKE PoleForeman
Structural analysis for pole loading and design.
7%
55%
31%
93%
14%
-
5
10
15
20
25
30
35
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
FY25*
Hardware andother
Transactions
Subscriptions
Tech Insights #361
ikeGPS: an eye on the poles
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Disclaimer The information provided in this report has been solely sourced and calculated from company annual reports 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.
Mergers & acquisitionsCorporate finance advisoryCapital raising
24 February 2025
Comparable engineering and geospatial software and solutions companies
$1.00 acquisition approach in late 2024
Pre- and post- offer announcement valuation
Description
Location
EV
21 Feb 2025
(NZD $m)
LTM
revenue
(NZD)
LTM
revenue growth (%)
LTM
EBITDA
(NZD)
EV /
Revenue
(x)
EV /
EBITDA
(x)
EBITDA margin
(%)
Autodesk
Engineering design software
US
109,001
9,750
9.7%
2,125
11.2x
51.3x
21.8%
Dassault Systems
3D design solutions
France
93,621
11,113
6.0%
3,462
8.4x
27.0x
31.2%
Hexagon AB
Industrial technology software
Sweden
62,047
9,660
0.8%
3,564
6.4x
17.4x
36.9%
ANSYS
Engineering simulation software
US
49,955
4,208
13.7%
1,274
11.9x
39.2x
30.3%
Trimble
Geospatial tech solutions
US
32,107
6,090
(1.6%)
1,199
5.3x
26.8x
19.7%
Bentley Systems
Infrastructure engineering software
US
28,644
2,162
8.0%
566
13.3x
50.6x
26.2%
Altair Engineering
Software and engineering solutions
US
16,674
1,101
10.2%
90
15.1x
184.9x
8.2%
ikeGPS
Utility pole software and tools
NZ
119
23
(12.1%)
(11)
5.2x
NM
(46.2%)
Median
41,031
5,149
7.0%
1,236
9.8x
33.1x
24.0%
Overview
•
On 7 February 2025, IKE announced that in late 2024, it received an unsolicited, non-binding acquisition approach from a North American private equity group.
•
The bidder was granted a brief exclusivity period for due diligence to form an offer compelling enough to put before all IKE shareholders.
Offer price
•
In late January, the bidder presented a firm offer of NZD $1.00 per share.
Outcome
•
After discussions with key shareholders, IKE’s Board determined that the proposed price was unlikely to secure sufficient support. As a result, the Board ceased acquisition discussions with the potential acquirer.
Date
Share price
(NZD)
Description
Market cap
(NZD $m)
EV
(NZD $m)
EV /
Revenue
(x)
5 Feb 25
0.62
Pre-announcement
100
90
4.0x
Late 2024
1.00
Offer
161
152
6.6x
21 Feb 25
0.80
Current
129
119
5.2x
Tech Insights #360
NZDX
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Mergers & acquisitionsCorporate finance advisoryCapital raising
17 February 2025
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Overview
This Tech Insights report explores the listed debt market (NZDX). Forming an important part of the wider New Zealand debt market, the NZDX offers access to debt funding from institutional and retail investors.
NZDX and government bond overview
-
1
2
3
4
5
6
7
8
9
10
-
2
4
6
8
10
12
14
16
18
20
22
24
26
28
30
Yield (%)
Time to maturity (years)
Government
Council
Banking
Infrastructure
Property
Other
The graph below provides an overview of the NZDX market by yield (%), time to maturity (years), and category of issuer. The wholesale traded Government bonds are included as a common ‘risk-free’ benchmark. NZDX listed securities take on different structures e.g. resetting rates, options to call/redeem, convertible features, and perpetuals. The graph below adopts the common practice of pricing until the next significant date (maturity, reset, or call).
Auckland Council has the longest term issue on the NZDX, a vanilla bond maturing in 2050.
Councils and other senior lending show relatively consistent spreads.
Debt trading at wide credit spreads can be due to issuer creditworthiness, lack of liquidity and subordinated features of some notes.
A slight inversion indicates expectations for further rate cuts.
Tech Insights #360
NZDX
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Disclaimer The information provided in this report has been sourced and calculated from NZX, FactSet and other 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
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Amount outstanding by issuer
Amount outstanding by maturity profile
-
1
2
3
4
5
LGFA
BNZ
ANZ
ASB
Infratil
Westpac
Auckland Council
Mercury
Transpower
Auckland Airport
NZD $b
Amount outstanding by sector
# of securities on issue
-
4
8
12
16
20
24
Council
Banking
Infrastructure
Other
Property
NZD $b
$21.2b
-
4
8
12
16
20
0-2
2-4
4-6
6-8
8-10
10-30
NZD $b
Years to maturity/reset/call
-
2
4
6
8
10
12
Infratil
LGFA
BNZ
Wellington Airport
Auckland Airport
Auckland Council
Fletcher Building
Mercury
Transpower
# of securities
>
LGFA = Local Government Funding Agency
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Dec 19
Jun 20
Dec 20
Jun 21
Dec 21
Jun 22
Dec 22
Jun 23
Dec 23
Jun 24
Dec 24
Tech Insights #359
Cloud Index as at 31 December 2024
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Mergers & acquisitionsCorporate finance advisoryCapital raising
10 February 2025
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. Over the December quarter, the US Cloud Index rose over 7.5x EV / NTM revenue for the first time since August 2022 and then pulled back to 7.0x as at 31 December 2024. The ANZ Cloud Index also rose above 7.5x to 8.0x before ending the quarter at 7.5x, an 8% increase over the quarter and 25% over the last 12 months.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
7.5x
ANZ Cloud Index
Average
12MMA
Dec 24
7.5x
6.7x
Sep 24
6.9x
6.3x
Change
8%
7%
Dec 23
6.0x
5.6x
Change
25%
19%
US Cloud Index
Average
12MMA
Dec 24
7.0x
6.3x
Sep 24
5.8x
6.2x
Change
19%
2%
Dec 23
6.8x
6.0x
Change
2%
5%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (23 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (84 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.
10.8x
7.5x
7.0x
Key:
US
ANZ
Average
12MMA
5yr avg
-
5.0x
10.0x
15.0x
20.0x
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 24
-
10.0x
20.0x
30.0x
40.0x
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
Dec 24
75th percentile
Median
25th percentile
Tech Insights #359
Cloud Index as at 31 December 2024
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
10 February 2025
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
8.8x
5.7x
3.2x
10.9x
5.5x
3.5x
US cloud companies
25th
75th
31 Dec 2024
Average
percentile
Median
percentile
EV (NZD $m)
47,988
5,031
12,214
33,093
EV / NTM rev
7.0x
3.2x
5.7x
8.8x
Revenue growth (NTM)
12%
6%
13%
21%
EV / LTM rev
8.5x
3.5x
6.9x
11.2x
Revenue growth (LTM)
19%
11%
17%
25%
Operating margin
(7%)
(16%)
(4%)
6%
ANZ cloud companies
25th
75th
31 Dec 2024
Average
percentile
Median
percentile
EV (NZD $m)
7,011
647
1,605
10,179
EV / NTM rev
7.5x
3.5x
5.5x
10.9x
Revenue growth (NTM)
17%
6%
20%
27%
EV / LTM rev
9.5x
4.0x
6.5x
12.9x
Revenue growth (LTM)
18%
8%
18%
26%
Operating margin
22%
9%
26%
38%
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.
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