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-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Dec 18
Jun 19
Dec 19
Jun 20
Dec 20
Jun 21
Dec 21
Jun 22
Dec 22
Jun 23
Dec 23
Tech Insights #317
Cloud Index as at 31 December 2023
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
12 February 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. Indices are calculated using a simple average (equal weighting), with the ANZ index comprising companies that have a minimum NZD $250m market capitalisation versus a NZD $500m for US constituents.
As at 31 December 2023, the US Cloud Index is up 14% from the previous quarter to 6.8x EV / NTM revenue but still well below the five-year average of 11.5x. The ANZ Cloud Index has also increased but to a lesser extent, up 3% to 6.0x EV / NTM revenue and below the five-year average of 8.0x.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
8.0x
ANZ Cloud Index
Average
12MMA
Dec 23
6.0x
5.6x
Sep 23
5.8x
5.6x
Change
3%
1%
Dec 22
5.4x
6.2x
Change
12%
(9%)
US Cloud Index
Average
12MMA
Dec 23
6.8x
6.0x
Sep 23
5.9x
5.9x
Change
14%
2%
Dec 22
5.3x
8.1x
Change
28%
(25%)
Note: Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average
11.5x
6.0x
6.8x
Index size
US: 87 companies
ANZ: 20 companies
Key:
US
ANZ
Average
12MMA
5yr avg
-
5.0x
10.0x
15.0x
20.0x
Dec 18
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
-
10.0x
20.0x
30.0x
40.0x
Dec 18
Dec 19
Dec 20
Dec 21
Dec 22
Dec 23
75th percentile
Median
25th percentile
Tech Insights #317
Cloud Index as at 31 December 2023
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
12 February 2024
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
9.0x
6.0x
3.9x
9.0x
3.6x
2.9x
US cloud companies
25th
75th
31 Dec 2023
Average
percentile
Median
percentile
EV (NZD $m )
32,397
3,844
9,476
24,440
EV / NTM rev
6.8x
3.9x
6.0x
9.0x
Revenue growth (NTM)
16%
10%
17%
22%
EV / LTM rev
8.0x
4.1x
6.6x
11.0x
Revenue growth (LTM)
20%
11%
19%
28%
Gross margin
72%
69%
75%
80%
Operating margin
(11%)
(22%)
(7%)
3%
FCF margin
18%
9%
18%
26%
ANZ cloud companies
25th
75th
31 Dec 2023
Average
percentile
Median
percentile
EV (NZD $m )
3,519
424
894
1,955
EV / NTM Rev
6.0x
2.9x
3.6x
9.0x
Revenue growth (NTM)
16%
5%
12%
27%
EV / LTM rev
7.1x
3.1x
3.9x
10.1x
Revenue growth (LTM)
28%
6%
21%
34%
Gross margin
55%
28%
60%
81%
Operating margin
4%
(10%)
12%
22%
FCF margin
5%
(5%)
6%
15%
Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the 1st day of the reported quarter.
EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months, FCF = Unlevered free cash flow
Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. 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.
Manual add of companies featured: Spark,Modica Group,VXT,Straker Translations,Cin7,EROAD,TradeWindow,PredictHQ,Serko,Myhr,PaySauce,Xero,runn,joyous,FIND Recruitment,Talent Army,Humankind,Catalyst Cloud,RedShield,Raygun,NZGIF,Halter,Partly,Shoof,Dawn Aerospace,Serato,NZ Post,Hnry,Cannasouth,Icebreaker,Trade Me,HazardCo,tandem,InvestNow,Meridian,Business Desk,Cookie TIme,Al Brown,ScottTechnology,Garage Project,solarZero,DOT Loves Data
Tech Insights #316
Unwrapping Software Santa as a Service
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 December 2023
Santa’s North Pole operation
Ever wondered how Santa manages to sleigh every Christmas? From overseeing communication channels and employee management, to finances, security and gift distribution, Santa orchestrates a complex operation. In this year’s Christmas Tech Insights report, we take a glimpse into Santa’s secret operations at the North Pole and showcase the contributions of Kiwi companies.
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Santa as a Service
Logistics
Back-office
Elf recruitment/ HR
External
Internal
Message management
Santa hotline
0800 222 222
Message translations
Message
solutions
Inventory management
Travel management
Fleet
management
Import/export trade processes
Delivery optimisation
Accounts
Resource management
Employee management
Employee data analytics
Payroll
Security
Crash reporting
Data insights
Customer
Cloud-hosting
Tech Insights #316
Unwrapping Software Santa as a Service
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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, and this report is not an invitation for investment into Santa as a Service.
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 December 2023
Live from the North Pole…
Reindeer management
Resale of gifts
Elf KiwiSaver
Contractor elves
Entertainment
Manufacturing robots
Santa’s workshop
Reindeer nutrition
Safety
systems
North Pole clothing
Arthritis management
Sleigh parts
Reindeer supplies
-
1,000
2,000
3,000
4,000
Jan 18
Jul 18
Jan 19
Jul 19
Jan 20
Jul 20
Jan 21
Jul 21
Jan 22
Jul 22
Jan 23
Jul 23
'23
'22
'21
'20
'19
'18
Tech Insights #315
Initial public offerings (IPOs)
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 December 2023
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Overview
In this Tech Insights report, we look at initial public offerings (IPOs) spanning the NZX, ASX, NASDAQ and NYSE since 2018. For the purposes of this report, an IPO excludes compliance listings and mutual conversions. The first page outlines the cumulative market capitalisation and number of IPOs across these exchanges and highlights the largest IPO by offering size for each year. On the second page, the share prices of two NZX-listed IPOs – Rua Bioscience and My Food Bag – are indexed, tracking their performance against a comparator and the NZX50 from their IPO dates in October 2020 and March 2021, respectively.
Market capitalisation of NZX, ASX, NASDAQ and NYSE IPOs over time (USD $bn)
Number of IPOs across exchanges
56
41
68
191
67
18
-
1
2
2
-
-
-
50
100
150
200
'18
'19
'20
'21
'22
'23
ASX
NZX
106
117
177
421
110
60
44
38
38
134
4
14
-
150
300
450
600
'18
'19
'20
'21
'22
'23
NASDAQ
NYSE
Year
Avg. IPO offering (USD $m)
Largest
IPO by offering size
Market cap. (USD $bn)
IPO
date
30 Nov 23
’18
179
11
4
’19
277
70
116
’20
361
70
62
’21
220
84
16
’22
53
13
13
‘23
228
65
63
Tech Insights #315
Initial public offerings (IPOs)
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Disclaimer The information provided in this report has been sourced and calculated from S&P Global Market Intelligence and the NZX. 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
11 December 2023
My Food Bag’s indexed share price from IPO date (vs. Hello Fresh)
Rua Bioscience’s indexed share price from IPO date (vs. Cannasouth)
Metrics from all NZX IPOs and the top IPOs by offering size between 2018 and 2023
NZX50
NZX50
Enterprise value (USD $m)
ΔShare price
Enterprise value/revenue
Company
Exchange
Industry
First pricing date
First pricing date
30 Nov 23
IPO offer price to IPO date close
IPO date close to
30 Nov 23 close
IPO date
30 Nov 23
Winton Land
NZX
Real Estate
Dec 21
839
399
(0.4%)
(38.0%)
7.0x
3.1x
My Food Bag
NZX
Cons. Staples.
Mar 21
321
34
(5.9%)
(92.6%)
2.5x
0.3x
New Zealand Rural Land
NZX
Real Estate
Dec 20
0.4
161
-
(33.6%)
NA
19.3x
RuaBioscience
NZX
Health Care
Oct 20
61
11
36.0%
(78.8%)
154.9x
27.4x
Napier Port Holdings
NZX
Industrials
Aug 19
430
377
13.5%
(16.9%)
7.3x
5.2x
Arm Holdings
NASDAQ
Technology
Sep 23
63,369
61,060
24.7%
(3.3%)
23.8x
21.5x
CorebridgeFinancial
NYSE
Financials
Sep 22
29,739
25,558
(1.3%)
1.4%
1.1x
1.1x
Rivian Automotive
NASDAQ
Cons. Discret.
Nov 21
88,066
10,164
29.1%
(83.4%)
NA
2.7x
Snowflake
NYSE
Technology
Sep 20
71,287
57,679
111.6%
(26.1%)
177.0x
22.0x
Uber Technologies
NYSE
Rideshare
May 19
85,189
120,326
(7.6%)
35.6%
7.6x
3.3x
iQIYI
NASDAQ
Communication
Mar 18
14,338
5,697
(13.7%)
(67.2%)
5.4x
1.3x
-
50%
100%
150%
Oct 20
Apr 21
Oct 21
Apr 22
Oct 22
Apr 23
Oct 23
-
50%
100%
150%
Mar 21
Sep 21
Mar 22
Sep 22
Mar 23
Sep 23
-
100
200
300
400
500
600
FY18
FY19
FY20
FY21
FY22
AWS
Other
Physical stores
Subscription services
Advertising services
Third-party sellerservices
Online stores
Non-AWS
Tech Insights #314
Amazon
Mergers & acquisitionsCorporate finance advisoryCapital raising
4 December 2023
Overview
This Tech Insights report examines the online retail giant Amazon. Amazon is one of only eight companies to ever reach a market capitalisation of over USD $1 trillion, growing from what was originally a website that exclusively sold books to one that provides e-commerce, cloud computing, digital streaming and AI services. In this report, we take a look at Amazon’s financials to date and compare key metrics to its peers.
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Revenue streams
Revenue split (USD $bn)
Share price (USD $)
Operating profit (USD $bn) by Non-AWS & AWS segment
In FY22, AWS only made up 16% of Amazon’s total revenue.
(15%)
(10%)
(5%)
-
5%
10%
15%
20%
25%
30%
(15)
(10)
(5)
-
5
10
15
20
25
30
FY18
FY19
FY20
FY21
FY22
Operating margin (RHS)
Operating profit (LHS)
-
40
80
120
160
200
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
19.68
146.74
Revenue
Description
Online stores
Online product sales and digital media content.
Third-party seller services
Commissions, fulfilment and shipping fees.
Advertising services
Sale of advertising services.
Subscription services
Amazon Prime and other non-AWS membership.
Physical stores
Product sales physically selected in a store.
Other
Other offerings such as video content licensing.
AWS
Amazon’s own cloud computing platform.
December financial year-end
Tech Insights #314
Amazon
Disclaimer The information provided in this report has been sourced from S&P Global Market Intelligence and various 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 December 2023
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Time for companies to reach USD $1T market capitalisation
Indexed share price of selected peer comparables since 2018
Retail and e-commerce peer comparables
Company
Date founded
$1T date
Time to $1T since founded (years)
Meta
4 Feb 2004
28 Jun 2021
Tesla
1 Jul 2003
25 Oct 2021
Alphabet
4 Sep 1998
16 Jan 2020
Amazon
5 Jul 1994
4 Sep 2018
Nvidia
5 Apr 1993
30 May 2023
Apple
1 Apr 1976
2 Aug 2018
Microsoft
4 Apr 1975
26 Apr 2019
Saudi Aramco
29 May 1933
11 Dec 2019
Note: Meta and Tesla are currently no longer valued above $1 trillion.
EV/EBITDA multiple
3-year EBITDA CAGR
18.3
21.4
24.2
30.2
42.3
44.1
86.5
17.4
(100%)
(50%)
-
50%
100%
150%
200%
250%
300%
2018
2019
2020
2021
2022
2023
Costco
Target
Home Depot
Amazon
Walmart
eBay
Carrefour
Rakuten
(10%)
(5%)
-
5%
10%
15%
20%
25%
30%
-
5x
10x
15x
20x
25x
30x
Tech Insights #313
Accenture M&A
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
27 November 2023
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Overview
Global IT services company Accenture recently announced the acquisition of Wellington based Solnet. This follows Accenture’s 2020 acquisition of New Zealand based Zag. As part of announcing the Solnet deal, Accenture reported that its annual revenue from New Zealand operations exceed $200m. M&A is an integral part of Accenture’s growth strategy as shown by their acquisition history. M&A can be an effective method of growth compared with organic customer acquisition and Accenture clearly have a streamlined process of finding and executing deals.
Enterprise value USD $b
Aus/NZ acquisitions since 2020
# of acquisitions by quarter
-
100
200
300
2015
2016
2017
2018
2019
2020
2021
2022
2023
-
5
10
15
20
2015
2016
2017
2018
2019
2020
2021
2022
2023
Date
Name
Employee estimate
Overview
Nov 23
Solnet*
134
IT services and IT consulting.
Aug 23
ATI Solutions
54
Digital consultancy for asset-intensive industries.
May 23
BourneDigital
75
Cloud services and digital consultancy.
Dec 22
Fiftyfive5
223
Market research.
May 21
Industrie&Co
173
Cloud services and consultancy.
May 21
Elector 80
100
Mining, electrical and IT consulting. (AU$30m deal).
Mar 21
GRA Supply
50
Supply chain consultants. (AU$25m deal).
Nov 20
Olikka
30
Provide remote work solutions to corporatesand government in Australia.
Oct 20
Zag*
200
SAP provider and certified AWS Advanced Consulting Partner.
Feb 20
AlphaBeta
35
Strategic economics consultancy.
Feb 20
Icon Integration
70
SAP consultancy in Australia and NZ.
*NZ company
Acquisitions by country since 2020
-
10
20
30
40
Tech Insights #313
Accenture M&A
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DisclaimerThe information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisionsyou should seek appropriate personalised financial advice.
Revenue USD $b and EBITDA margin
Mergers & acquisitionsCorporate finance advisoryCapital raising
27 November 2023
Global IT services companies USD $b
Revenue by geography USD $b
Revenue by industry USD $b
-
10
20
30
40
50
60
North America
Europe
Rest of World
-
10
20
30
40
50
60
Consumer goods,industrial & lifesciences
Resources
Financial services
Health & publicservice
Communications,media &technology
-
5%
10%
15%
20%
25%
-
10
20
30
40
50
60
70
80
'18
'19
'20
'21
'22
'23
'24
'25
Name
Headquarters
Ticker
EV
LTM revenue
LTM EBITDA
EV / LTM revenue
EV / LTM EBITDA
4yr revenue CAGR
EBITDA margin
Acquistions in ANZ since '20
Accenture
Ireland
NYSE:CAN
204
64
11
3.2x
18.2x
10%
17%
11
IBM
USA
NYSE:IBM
189
61
14
3.1x
13.9x
-6%
22%
2
Tata Consultancy
India
NSE:TCS
149
29
7
5.2x
20.4x
7%
26%
0
Infosys
India
NSE:INFY
71
19
4
3.8x
16.4x
11%
23%
1
Capgemini
France
EPA:CAP
39
24
3
1.7x
12.2x
11%
14%
4
Cognizant
USA
NASDAQ:CTSH
35
19
3
1.8x
10.1x
4%
18%
1
Tech Mahindra
India
NSE:TECHM
12
6
1
1.9x
17.0x
7%
11%
3
Median
71
24
4
3.1x
16.4x
7%
18%
2
Mean
100
32
6
2.9x
15.5x
6%
19%
3
Forecast
(35%)
(25%)
(15%)
(5%)
5%
15%
25%
3 years ago
2 years ago
LTM
NTM
(35%)
(25%)
(15%)
(5%)
5%
15%
25%
3 years ago
2 years ago
LTM
NTM
Tech Insights #312
Tech industry pivots to profitability
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
20 November 2023
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Overview
In the years leading up to the coronavirus pandemic, and in the first two years of the pandemic, there was a strong narrativethat tech companies should focus on revenue growth over profitability. Investors could accept a company’s losses so long as it was growing at a sufficient pace. We have seen over the last two years that investors are less willing to accept this narrative and there has been a trend back to profitability. In this report we look at listed tech companies in North America and Australia/NZ. We examine how EBITDA margins are forecast to grow this year at an aggregate level (page 1) and focus on specific companies that have pivoted to profitability (page 2).
EBITDA margins for listed North American tech companies
EBITDA margins for listed Australia/NZ tech companies
Forecast
3 years ago
2 years ago
LTM
NTM
Average
1,202
1,334
1,288
1,669
Upper quartile
281
320
283
557
Median
22
26
36
118
Lower quartile
(10)
(14)
(12)
13
# of companies
389
389
389
389
3 years ago
2 years ago
LTM
NTM
Average
18
14
12
50
Upper quartile
29
32
15
33
Median
1
0
0
9
Lower quartile
(5)
(5)
(5)
1
# of companies
50
50
50
50
EBITDA for listed North American tech companies (USD $m)
EBITDA for listed Australia/NZ tech companies (USD $m)
Note: Tech companies are as defined by S&P Global Market Intelligence under Information Technology. The North American average is high due to outliers at the top end (Apple, Microsoft, etc.). All current listed tech companies with data across the four periods are included. LTM = Last 12 Months, NTM = Next 12 months.
Upper quartile
Median
Lower quartile
Upper quartile
Median
Lower quartile
Actual
Forecast
Actual
(1,500)
(1,000)
(500)
-
500
1,000
1,500
3 years ago
2 years ago
LTM
NTM
(40%)
(30%)
(20%)
(10%)
-
10%
20%
30%
3 years ago
2 years ago
LTM
NTM
Tech Insights #312
Tech industry pivots to profitability
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DisclaimerThe information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisionsyou should seek appropriate personalised financial advice.
EBITDA margin for selected Australia/NZ tech companies
Mergers & acquisitionsCorporate finance advisoryCapital raising
20 November 2023
EBITDA (USD $m)
EBITDA margin for selected North American tech companies
(40%)+
(80%)
(60%)
(40%)
(20%)
-
20%
Megaport
Audinate
Ansarada
Task
Catapult
Bigtincan
3 years ago
2 years ago
LTM
NTM
+
+
1.3
(2.9)
(2.5)
(1.3)
2.7
(60.0)
(45.0)
(30.0)
(15.0)
-
15.0
30.0
45.0
60.0
(4.0)
(3.0)
(2.0)
(1.0)
-
1.0
2.0
3.0
4.0
FY19
FY20
FY21
FY22
FY23
Passengers carried (line)
Profit (loss) before tax (bar)
2.7
3.0
1.9
5.0
4.7
4.4
21.6
3.2
18.5
1.3
2.8
2.1
4.1
4.6
4.3
19.2
2.4
16.7
Before tax profit (loss)
Other
D&A
Fuel
Labour
Aircraft operations
Total revenue
Other
Passenger revenue
0.4
(0.6)
(0.4)
(0.8)
0.6
(20.0)
(15.0)
(10.0)
(5.0)
-
5.0
10.0
15.0
20.0
(1.0)
(0.5)
-
0.5
1.0
FY19
FY20
FY21
FY22
FY23
Passengers carried (line)
Profit (loss) before tax (bar)
0.6
1.0
0.7
1.5
1.4
1.1
6.3
1.0
5.3
0.4
1.2
0.6
1.3
1.4
1.1
5.8
0.8
5.0
Before tax profit (loss)
Other
D&A
Fuel
Labour
Aircraft operations
Total revenue
Other
Passenger revenue
COVID impacted period
COVID impacted period
Tech Insights #311
Post-COVID airline recovery
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Mergers & acquisitionsCorporate finance advisoryCapital raising
13 November 2023
Overview
Following the easing of travel restrictions, airlines have shown signs of recovery with revenue surpassing pre-COVID levels. The first page of this report provides a comparison of two prominent listed companies within the New Zealand passenger airline landscape: Air New Zealand and Qantas Group (the parent company of Jetstar), focusing on their performance before, during and after COVID. The second page widens the scope to encompass global players, exploring financial and operational metrics over time.
Profit/(loss) before tax (NZD $bn) versus passengers carried (million)
Profit/(loss) before tax breakdown (NZD $bn)
FY23 (post-COVID)
FY19 (pre-COVID)
Profit/loss before tax
Profit/loss before tax
FY23 (post-COVID)
FY19 (pre-COVID)
Tech Insights #311
Post-COVID airline recovery
Page 2 of 2
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Disclaimer The information provided in this report has been sourced from S&P Global Market Intelligence 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
13 November 2023
Company
EV
(NZD $bn)
Revenue LTM
(NZD $bn)
EBITDA LTM
(NZD $bn)
EV / EBITDA LTM
Passengers carried (million)
Revenue passenger kilometres (bn)**
Revenue per passenger (NZD)
Oct 19
Oct 23
Oct 19
Oct 23
Oct 19
Oct 23
Oct 19
Oct 23
FY19
FY22/23*
FY19
FY22/23*
FY19
FY22/23*
InterGlobe Aviation
12.6
25.9
6.6
11.6
0.8
1.8
16.4
14.5
64.7
85.3
69.8
114.1
92.5
127.6
Delta Airlines
78.7
73.8
69.6
93.3
13.0
12.1
6.1
6.1
162.3
141.6
382.5
316.2
439.9
563.6
United Airlines
59.3
53.5
64.4
85.5
9.9
13.2
6.0
4.1
162.4
144.3
385.2
332.8
404.3
491.6
Qantas Airways
14.0
13.0
19.2
21.6
2.9
4.6
4.8
2.8
55.8
45.7
127.5
97.7
343.3
473.5
Singapore Airlines
20.7
38.5
17.7
20.8
3.0
5.2
6.8
7.4
20.7
18.2
102.6
91.0
851.3
1,143.7
Air France
20.7
19.1
45.5
51.7
4.8
5.8
4.3
3.3
104.2
83.3
263.5
205.7
443.4
525.3
Air Canada
18.9
15.0
21.4
25.8
3.1
3.9
6.2
3.9
51.5
36.1
151.5
107.0
424.7
554.9
Air China
54.1
72.2
29.9
26.9
6.4
(0.3)
8.5
NM
115.0
38.6
233.2
60.4
260.2
321.1
Air New Zealand
4.7
3.4
5.8
6.3
0.8
0.9
5.6
3.6
17.7
15.8
38.6
29.0
326.1
401.2
Median
20.7
25.9
21.4
25.8
3.1
4.6
6.1
3.9
64.7
45.7
151.5
107.0
404.3
491.6
Indexed share price of selected airlines since 2020
Key financial and operational metric comparison (pre- and post- COVID)
(80%)
(60%)
(40%)
(20%)
-
20%
Jan 20
Apr 20
Jul 20
Oct 20
Jan 21
Apr 21
Jul 21
Oct 21
Jan 22
Apr 22
Jul 22
Oct 22
Jan 23
Apr 23
Jul 23
Oct 23
InterGlobe Aviation
Delta Airlines
United Airlines
Qantas Airways
Singapore Airlines
Air France
Air Canada
Air China
Air New Zealand
*Note operational metrics taken from the recent annual report (FY22 or FY23, depending on the company’s fiscal year-end).
**Revenue passenger kilometres is the total number of passengers carried multiplied by total number of kilometres flown.
InterGlobe Aviation (IndiGo) holds over 60% of India’s domestic market share
-
20
40
60
80
100
120
140
Nov 21
Feb 22
May 22
Aug 22
Nov 22
Feb 23
May 23
Aug 23
Nov 23
65%
70%
75%
80%
85%
-
500
1,000
1,500
2,000
LTM 3 yearsago
LTM 2 yearsago
LTM 1 year ago
LTM
Tech Insights #310
New Relic takeover
Mergers & acquisitionsCorporate finance advisoryCapital raising
6 November 2023
Overview
This Tech Insights report looks at the agreed full takeover for New Relic (anagram of founder Lew Cirne’s name) by TPG Capital (TPG) and Francisco Partners (FP) for USD $6.6bn. The takeover offer has been accepted on the back of previously rejected offers. New Relic is a US-based web tracking and analytics company. It specialises in providing software analytics and performance monitoring solutions for businesses with tools to track and analyse the performance of web and mobile applications. In this report, we take a look at New Relic’s financial metrics to date, the key events leading up to the acquisition, how the offer matches against comparable companies and transactions, and an overview of the wider software M&A space over time.
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New Relic vs Datadog revenue (USD $m) and gross margin
New Relic key financial statistics (USD $m)
New Relic share price (USD $)
Jul 23
FP & TPG revised offer to $87. Offer accepted.
May 23
FP & TPG drops out due to financing & NR forecast shortfall issues.
Acquirers
Target
Gross margin (RHS)
Revenue (LHS)
Apr 23
Receive 3 offers $90-$100. FP & TPG offer $96.05.
LTM stands for Last Twelve Months
Jul – Aug 22
FP & TPG joint bid $70-$75. Offer rejected.
Nov 22
FP & TPG offer
$75-$80. Offer rejected.
Feb 23
FP & TPG offer $95.
Mar 23
Sales process.
16 parties approached.
Jun 23
FP & TPG revised offer to $90.
Sep 23
New Relic approached 53 additional parties with no better offer.
Financial item
FY19
FY20
FY21
FY22
FY23
Total revenue
479
600
668
786
926
Gross profit
402
496
486
529
681
EBITDA
15
(17)
(95)
(176)
(135)
Net debt
(339)
(312)
(299)
(270)
(330)
Active customers #
NA
NA
14,100
14,800
16,000
NRR*
NA
NA
112%
119%
118%
*Net revenue retention rate
1,941
1,682
1,306
1,611
1,808
1,803
1,815
2,175
2,417
2,425
2,580
2,755
2,818
2,837
4,181
3,385
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
-
50
100
150
200
250
300
350
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Deal count
Transaction value
6.9
7.7
4.7
5.4
4.0
50.7
18.9
-
5x
10x
15x
20x
25x
30x
35x
TPG & FP/New Relic (Jul 23)
Cisco Systems/Splunk (Sep 23)
FP/Sumo Logic (Feb 23)
Broadcom/VMware (May 22)
Ivanti Software/MobileIron (Sep 20)
Splunk/SignalFx (Aug 19)
Cisco Systems/AppDynamics (Mar 17)
Tech Insights #310
New Relic takeover
Disclaimer The information provided in this report has been sourced and calculated from S&P Global Market Intelligence and SEC filings. 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
6 November 2023
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Comparable transactions EV/revenue multiples
Software M&A transactions since 2007 (USD $bn)
4
Comparable listed company metrics (USD $m)
Company
EV
LTM revenue
Gross margin
LTM rev growth
3-year rev CAGR
EV/Rev
Fortinet
37,531
4,988
76%
31%
28%
7.3x
Datadog
25,363
1,897
79%
39%
58%
13.4x
Splunk
26,310
3,843
79%
26%
18%
6.8x
Dynatrace
13,405
1,224
83%
24%
28%
10.3x
Elastic N.V.
6,769
1,113
73%
39%
42%
6.1x
SolarWinds
2,777
737
90%
2%
(1%)
3.7x
Median
19,384
1,597
79%
26%
28%
7.1x
New Relic
5,815
968
77%
13%
15%
6.0x
45x
50x
55x
Total transaction value (for available data)
Median
6.9x
Deal count
CAC ratio formula
The CAC ratio can be adapted with varying interpretation depending on the industry and market. It is recommended that companies calculating their own CAC ratio to use new revenue from new customers, however, this is not often publicly available data. For this reason, this analysis uses the following formula:
Tech Insights #309
CAC ratio – listed SaaS companies
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Mergers & acquisitionsCorporate finance advisoryCapital raising
30 October 2023
Overview
This week’s Tech Insight explores the well-known SaaS metric that is the Customer Acquisition Cost (CAC) ratio. A CAC ratio indicates how much money the company spends on acquiring new customers in order to generate one additional dollar of revenue. Generally, we would expect a higher CAC ratio for start ups compared to established companies, as they are spending more to attract new customers, as well as assert market presence. However, for larger mature companies in a saturated market, the marginal cost of acquiring new customers can increase and therefore the CAC ratio can rise again as a result. Data is as at 31 August 2023.
-
1.0
2.0
3.0
4.0
5.0
BASE
DOMO
BTH
BIGC
DOCU
ADSK
CRM
ADBE
EVS
DBX
CFLT
HUBS
SMAR
GTLB
WDAY
XRO
FCT
PCTY
PYPL
360
SHOP
IKE
CAC ratio – Selection of US and Australian listed companies
CAC ratio and other metrics
A CAC ratio can be interpreted as a return on investment for a company's sales and marketing expenditure. It indicates the overall effectiveness and scalability of sales and marketing strategies. It is also useful to identify trends over time and make strategic adjustments.
The CAC ratio can be used in in conjunction with other customer value metrics, such as the CAC payback period, to further analyse value creation.
The CAC payback period assesses the time it takes for a company to recover the cost of acquiring a new customer and can be calculated as: CAC / Annual Gross Margin per customer.
Note: For this analysis we have used S&P Global Market Intelligence definitions, which may miss some company specific classifications.
Annual Sales and Marketing SpendAnnual Revenue Increase
Simplified CAC ratio =
Sales and Marketing SpendRevenue from new customers
CAC ratio =
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Tech Insights #309
CAC ratio – listed SaaS companies
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Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. 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.
CAC ratio and annual sales and marketing spend as a percentage of total expenses
Mergers & acquisitionsCorporate finance advisoryCapital raising
30 October 2023
Couchbase
Domo
BigCommerce
DocuSign
Autodesk
Salesforce
Adobe Inc.
Dropbox
Confluent
HubSpot
Smartsheet Inc.
GitLab
Workday
Paylocity
Paypal
Shopify
Bigtincan
Envirosuite
Xero
FirstWave Cloud Technology
Life360
ikeGPS Group
-
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-
1.0
2.0
3.0
4.0
5.0
Sales and Marketing as a % of total expenses
CAC Ratio
Enterprise Value key (NZD $billions)
100 – 500
1 – 10
< 1
US Listed AU Listed
10 – 100
Bubble colour key
Tech Insights #308
NZX 50 index comparison
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 October 2023
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Overview
This Tech Insights report investigates the composition of New Zealand’s primary index (NZX 50) against well-known international indices. The NZX 50 has a comparatively large weighting in Industrials (driven by Auckland International Airport, Infratil and Mainfreight), Healthcare (driven by F&P Healthcare and EBOS) and Utilities (driven by Meridian, Contact and Mercury). The NZX 50 has the smallest exposure to sectors defined as cyclical. The second page of the report presents the performance of the indices over the last 2 years. The analysis on page 1 is at 30 September 2023.
Index constituents share of market cap by GICS sector
Index overview
Index composition
Index
Gross market cap (NZD $b)
HHI* index concentration (# constituents)
Top 10
(% of index)
Largest constituent (weight)
MSCI World
106,014
136
20%
Apple (5%)
S&P 500
63,531
63
31%
Apple (7%)
FTSE 100
4,135
28
50%
Shell (9%)
ASX 200
2,662
30
47%
BHP (11%)
NZX 50
301
19
64%
F&PH (11%)
-
10%
20%
30%
40%
Industrials
Financials
Health Care
ConsumerDiscretionary
Real Estate
ConsumerStaples
Materials
Utilities
InformationTechnology
CommunicationServices
Energy
MSCI World
S&P 500
FTSE 100
ASX 200
NZX 50
14%
66%
36%
29%
30%
43%
19%
30%
48%
40%
44%
15%
35%
23%
21%
-
50%
100%
NZX 50
ASX 200
FTSE 100
S&P 500
MSCI World
Type (Morningstar)
Definition
GICS sectors
Cyclical
Highly sensitive to business cycle peaks and troughs
Materials, Consumer Discretionary, Financial Services and Real Estate
Sensitive
Moderate correlations with business cycles
Communication Services, Energy, Industrials and Information Technology
Defensive
Typically counter-cyclical through business cycles
Consumer Staples, Health Care and Utilities
*HHI (Herfindahl-Hirschman index) measures the degree of concentration. The effective number of constituents is calculated as 1 / the sum of squared constituent weights.
Tech Insights #308
NZX 50 index comparison
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Disclaimer The information provided in this report has been sourced and calculated from S&P Global Market Intelligence. 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
16 October 2023
Technology sector performance (total return - last 2 years)
(50%)
(40%)
(30%)
(20%)
(10%)
-
10%
20%
30%
(50%)
(40%)
(30%)
(20%)
(10%)
-
10%
20%
30%
Oct 21
Jan 22
Apr 22
Jul 22
Oct 22
Jan 23
Apr 23
Jul 23
Oct 23
FTSE 100
ASX 200
S&P 500
MSCI World
NZX 50
Index performance (total return - last 2 years)
(50%)
(40%)
(30%)
(20%)
(10%)
-
10%
20%
30%
(50%)
(40%)
(30%)
(20%)
(10%)
-
10%
20%
30%
Oct 21
Jan 22
Apr 22
Jul 22
Oct 22
Jan 23
Apr 23
Jul 23
Oct 23
FTSE Tech
ASX Tech
S&P 500 IT
Global IT
NZX IT
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Sep 18
Mar 19
Sep 19
Mar 20
Sep 20
Mar 21
Sep 21
Mar 22
Sep 22
Mar 23
Sep 23
Tech Insights #307
Cloud Index as at30 September 2023
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Mergers & acquisitionsCorporate finance advisoryCapital raising
9 October 2023
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand.How the indices have been calculated in this report has been refined since the last report (#294) by applying a minimum NZD $250m market capitalisation to the ANZ index and using asimple average for each index rather than the median value. This reduces the constituent size of the ANZ index from 69 to 20 but allows us to compare the top companiesinANZ against the top companies in the US.
As at30 September 2023, the US Cloud Index is down 8% from the previous quarter to 5.9x EV / NTM revenue and still well below the five-year average of 11.5x. The ANZ Cloud Index is also marginally down, 2% to 5.8x EV / NTM revenue and well below the five-year average of 8.1x.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
8.1x
ANZ Cloud Index
Average
12MMA
Sep 23
5.8x
5.6x
Jun 23
6.0x
5.5x
Change
(2%)
2%
Sep 22
5.2x
7.4x
Change
13%
(25%)
US Cloud Index
Average
12MMA
Sep 23
5.9x
5.9x
Jun 23
6.4x
6.1x
Change
(8%)
(3%)
Sep 22
6.1x
11.2x
Change
(3%)
(47%)
Note: Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average
11.5x
5.8x
5.9x
Index size
US: 88 companies
ANZ: 20 companies
Key:
US
ANZ
Avg
12MMA
5yr avg
-
5.0x
10.0x
15.0x
20.0x
Jun 18
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
-
10.0x
20.0x
30.0x
40.0x
Jun 18
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
75th percentile
Median
25th percentile
Tech Insights #307
Cloud Index as at30 September 2023
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Mergers & acquisitionsCorporate finance advisoryCapital raising
9 October 2023
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
8.4x
5.6x
3.2x
9.1x
3.6x
2.8x
US cloud companies
25th
75th
30 Sep 2023
Average
percentile
Median
percentile
EV (NZD $m )
27,626
3,649
8,500
22,261
EV / NTM rev
5.9x
3.2x
5.6x
8.4x
Revenue growth (NTM)
15%
9%
16%
22%
EV / LTM rev
7.0x
3.4x
6.2x
10.3x
Revenue growth (LTM)
23%
12%
21%
31%
Gross margin
72%
68%
75%
80%
Operating margin
(14%)
(28%)
(11%)
1%
FCF margin
16%
7%
17%
25%
ANZ cloud companies
25th
75th
30 Sep 2023
Average
percentile
Median
percentile
EV (NZD $m )
3,287
441
860
1,915
EV / NTM Rev
5.8x
2.8x
3.6x
9.1x
Revenue growth (NTM)
18%
7%
16%
27%
EV / LTM rev
7.1x
3.0x
4.1x
11.4x
Revenue growth (LTM)
30%
6%
21%
36%
Gross margin
53%
28%
60%
81%
Operating margin
1%
(15%)
12%
22%
FCF margin
3%
(5%)
6%
15%
Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the 1st day of the reported quarter.
EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months, FCF = Unlevered free cash flow
Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. 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.
2020
2022
2023
2020
2021
2022
2021
2022
2014
2020
2022
2022
2021
2018
2023
2019
2021
Tech Insights #306
IT and digital services landscape
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
2 October 2023
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Overview
The New Zealand IT and digital services market has seen a range of M&A activity over recent years. On the first page of this Tech Insights report, we provide an overview of the IT and digital services landscape, highlighting key transactions (in colour) and competitors within the industry (shaded grey). Noteworthy acquisitions by non-IT and digital services companies are outlined to the right of the market map. On the second page, we provide valuation ranges observed across M&A and publicly listed companies.
Medium
Small
Large
Size
IT services
Digital design
Pure services
services & licenses
2018
2021
Private
equity involvement
Clare Capital advised deal
Buyer
Target
Non-IT and digital services acquirers
M&A transaction key:
Year
2020
2021
2022
2023
2019
2022
2020
2021
2023
2019
2019
2023
2020
2019
2022
2017
2021
2016
2018
Tech Insights #306
IT and digital services landscape
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Disclaimer The information provided in this report has been sourced and calculated from S&P Global Market Intelligence. 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 October 2023
Valuation datapoints
Below are the ranges of observed valuation multiples for IT and digital services companies across various acquirers. Higher multiples can be achieved for businesses that offer best in class metrics in terms of scale, EBITDA margins and growth trajectory. The outlined multiple ranges are informed using companies operating at or above industry averages.
-
1x
2x
3x
4x
5x
6x
7x
8x
9x
10x
EV / LTM EBITDA
Acquisitions by digital advertising agencies (WPP, Dentsuetc)
Listed IT services companies
Australian firms looking to make NZ acquisitions
NZ IT and digital services M&A
M&A multiples
Clare Capital typically observes EBITDA multiples of 3.5x to 6x resulting from a competitive M&A process, where the shareholders of an NZ services firm are looking to sell their business and the transaction completes. Note, not all deals complete.
Clare Capital is aware that Australian firms have historically considered IT and digital services acquisitions within a price range of 3x to 5x EBITDA. An active cash buyer of IT services firms in the NZ market is highly unusual and should be engaged with.
The multiples for listed IT companies is linked to gross margin, EBITDA margin and revenue growth. The IT services businesses that trade at materially higher multiples, like Accenture, tend to have significantly higher growth prospects and/or a higher EBITDA margin.
Digital advertising agencies such as WPP, Publicis and Dentsu are highly acquisitive, regularly buying firms for 5x to 8x EBITDA. Clare Capital advised Heyday on their sale to WPP. Dentsu acquired Davanti in 2019. Achieving an exit to one of these companies is driven almost entirely by the deal appetite of the acquirer.
Publicly listed
multiples
Tech Insights #305
KiwiSaver
Mergers & acquisitions
Corporate finance advisory
Capital raising
25 September 2023
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Overview
The Reserve Bank recently reported that for the first time since its launch in July 2007, total KiwiSaver Funds Under Management(FUM) across all providers exceeded NZD $100 billion.This is well north of other funds in New Zealand including ACC’sNZD $45 billion FUM and NZ Super’s NZD $65 billion FUM. Despite representing achievement of a significant milestone for KiwiSaver and an increase in overall savings of New Zealanders, this is still a long way off the Australian Superannuation’s size of AUD $3.5 trillion –38 times larger than KiwiSaver. In this Tech Insight’s reportwe take a lookinto provider growth, enrolment and some notable transactions,
FUM by provider (NZD $m) and membership growth (year ended March 2023)
Note that some providers included operate multiple schemes, e.g., Fisher Funds operates the Fisher Two, KiwiWealth and FisherFunds KiwiSaver schemes. The asterisk denotes current default KiwiSaver providers.
(20%)
-
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
(2,000)
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
ANZ
ASB
Fisher Funds*
Westpac*
AMP
Milford
BNZ*
Booster*
Generate
Simplicity*
NZX*
Mercer
MAS
NZ Funds
LifeStages
Craigs
The top four providers share 61% of all FUM.
(20%)
-
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
(50)
-
50
100
150
200
250
300
350
400
450
500
Juno
Supereasy
Summer
Pathfinder
NZDF
InvestNow
Aurora
Christian
Koura
Always Ethical
Nikko
Kernel
KiwiWrap
Maritime
BCF
Select
Sharesies
InvestNow, Aurora Capital and Koura recorded an approximate doubling of FUM and +70% membership growth during the period.
Ending FUM
Starting FUM
Member growth (RHS)
Tech Insights #305
KiwiSaver
Mergers & acquisitions
Corporate finance advisory
Capital raising
25 September 2023
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Disclaimer The information provided in this report has been sourced from S&P Global Market Intelligence and other public data. 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.
Buyer
Target
Consideration (NZD $m)
Members
FUM (NZD $m)
$/member
Consideration/FUM
Announced Date
NZX
Quay Street
31
unknown
1,600
na
2.0%
Nov 2022
Fisher Funds
Kiwi Wealth
310
270,000
9,000
1,148
3.4%
Aug 2022
Fisher Funds
Aon KiwiSaver and Master Trust
32
21,000
1,000
1,524
3.2%
Oct 2021
NZX
SuperLife
35
41,000
1,270
854
2.7%
Dec 2014
Fisher Funds
Tower Investments
79
unknown
894
na
8.8%
Feb 2013
Kiwibank
Gareth Morgan Investments
58
57,000
1,500
1,018
3.9%
Jan 2012
Fisher Funds
Huljich KiwiSaver (HWM)
21
87,000
191
240
10.9%
Mar 2011
Average
957
5.0%
Notable transactions
Note some transactions include both KiwiSaver and other assets, e.g., NZX’s acquisition of Quay Street included their KiwiSaver scheme and funds management business.
Asset value (NZD $m)
-
20,000
40,000
60,000
80,000
100,000
120,000
Jun 08
Jun 09
Jun 10
Jun 11
Jun 12
Jun 13
Jun 14
Jun 15
Jun 16
Jun 17
Jun 18
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
KiwiSaver assets
Superannuation assets
Individually managed portfolios
Percentage of eligible population enrolled by age
-
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
2.0%
0
5
10
15
20
25
30
35
40
45
50
55
60
65
Total eligible population
Total members
Tech Insights #304
SaaS R&D capitalisation
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 September 2023
Overview
This week’s Tech Insight explores the percentage of research and development (R&D) costs that are capitalised and expensed by selected Australian and New Zealand listed SaaS companies. Capitalising R&D expenditure is a financial accounting practice that recognises a portion of the annual R&D costs as an intangible asset on the company's balance sheet. This improves profitability of the company in the short term, with costs being amortised over several years, and records R&D as an investment instead of an expense. In M&A transactions, we often see R&D capitalisationbacked out -so that EBITDA fully reflects the current people costs of the business, regardless of if these costs are capitalisedor expensed for accounting purposes.
Company
Average R&D capitalised
Average R&D as a % of revenue
Average R&D expensed as a % of total expenses
Xero
44%
37%
22%
EROAD
66%
23%
9%
Vista Group
34%
31%
20%
Gentrack
15%
13%
13%
PaySauce
51%
34%
11%
Appen
66%
7%
3%
ikeGPS
30%
34%
16%
Serko
61%
87%
18%
Total average
46%
33%
14%
R&D averages over 5 years – or from first public report
R&D capitalisation considerations
74
103
136
212
260
97
123
176
260
337
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
100
200
300
400
500
600
FY19
FY20
FY21
FY22
FY23
NZD $m
Xero
EROAD
Regulatory compliance
Capitalisation of R&D expenditure is not a universally applied accounting method and is subject to criteria and requirements such as attributability of costs to the asset, and feasibility of completion for use.
Strategic decision
Capitalising R&D expenses is often seen as a strategic decision by companies, by spreading the costs and strengthening their immediate earnings.
Industry
Capitalisation of R&D expenses is particularly common in technology, industrial and pharmaceutical industries where products/services heavily rely on innovation and consistent development.
8
10
13
24
26
5
6
8
8
12
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
5
10
15
20
25
30
35
FY19
FY20
FY21
FY22
FY23
NZD $m
Capitalised R&D
Expensed R&D
% of total R&D capitalised
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Tech Insights #304
SaaS R&D capitalisation
Page 2 of 2
Disclaimer The information provided in this report has been sourced and calculated from S&P Global Market Intelligence and 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. R&D expense figures exclude relevant depreciation and amortisation.
Mergers & acquisitionsCorporate finance advisoryCapital raising
18 September 2023
Vista Group
Gentrack*
4
5
7
8
16
13
20
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
2
4
6
8
10
12
14
16
18
20
FY18
FY19
FY20
FY21
FY22
NZD $m
0.3
0.5
0.4
0.8
0.3
0.3
0.6
1.0
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
FY19
FY20
FY21
FY22
NZD $m
PaySauce
15
26
30
37
5
15
14
28
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
10
20
30
40
50
60
FY19
FY20
FY21
FY22
NZD $m
Appen
ikeGPS
Serko
0.7
0.7
1.2
1.8
3.0
2.1
2.3
1.2
4.2
9.7
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
2
4
6
8
10
12
FY19
FY20
FY21
FY22
FY23
NZD $m
7
11
7
15
14
2
3
3
15
28
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
5
10
15
20
25
30
35
40
45
FY19
FY20
FY21
FY22
FY23
NZD $m
*In FY20, Gentrack impaired its development assets by $4.5m due to judgment they no longer meet the capitalisation requirements and have not made any additions since.
8
12
13
13
16
22
25
20
22
28
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
5
10
15
20
25
30
35
40
45
FY18
FY19
FY20
FY21
FY22
NZD $m
Capitalised R&D
Expensed R&D
% of total R&D capitalised
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39%
34%
24%
3%
-
20%
40%
60%
80%
100%
Tech Insights #303
Card processing networks
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 September 2023
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Overview
Open-loop card processing networks are dominated globally by three companies: Visa, UnionPay and Mastercard. Visa and Mastercard are the most widely accepted payment methods in New Zealand and globally. UnionPay holds a large amount of global market share, however this is mainly concentrated in China. Open-loop payment systems allow transactions among participants, without restrictions on membership or limited acceptance. This report looks into the global network giants Visa and Mastercard and other smaller listed players in this space.
Global market share – by network transactions processed
NZ retail bank partnerships
In New Zealand, Visa and Mastercard partner with credit card issuers (i.e. retail banks) to process their transactions.
Source: 2022 Nielson Report
FY22 revenue breakdown (USD $b)
Both Visa and Mastercard utilise a client incentive model to buy issuer loyalty and to route transactions onto their networks. These are typically structured as long-term contracts with financial institutions, merchants and strategic partners.
Client incentives (as a % of gross revenue)
29
(10)
40
-
10
20
30
40
Net revenue
Client incentives
Gross revenue
Visa FY22 Revenue
22
(13)
35
-
10
20
30
40
Net revenue
Client incentives
Gross revenue
Mastercard FY22 Revenue
Other
24%
26%
26%
35%
37%
37%
-
10%
20%
30%
40%
FY2020
FY2021
FY2022
Visa
Mastercard
Tech Insights #303
Card processing networks
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. 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.
Payment networks – Market cap
Visa and Mastercard dominate the listed payments space. PayPal has partnered with both Visa and Mastercard to run its PayPal and Venmo-branded credit cards. The COVID pandemic accelerated the use of digital payments, however PayPal’s profit margins have since weakened.
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 September 2023
Comparator metrics for payment network companies (USD $b)
Revenue
Revenue growth
Pre-tax profit margin
Company
Description
Year end
Market cap
FY22 (A)
FY23 (F)
FY22 (A)
FY23 (F)
FY22 (A)
Visa
Open-loop transaction processing network
Sep
503
40*
44*
22%
10%
49%
Mastercard
Open-loop transaction processing network
Dec
391
35*
40*
18%
12%
35%
PayPal
Closed-loop network - digital payments
Dec
67
28
30
8%
8%
15%
American Express
Closed-loop payments and issuer of credit
Dec
116
51
61
16%
20%
20%
Block (Square)
Financial services and online payments
Dec
33
18
21
(1%)
22%
(4%)
Mean
222
34
39
13%
14%
23%
Median
116
35
40
16%
12%
20%
-
100
200
300
400
500
600
2009
2011
2013
2015
2017
2019
2021
2023
USD $b
Visa
Mastercard
PayPal
AmericanExpress
Block
FY18
FY22
-
10
20
30
40
50
60
Visa*
Mastercard*
PayPal
American Express
Block
Revenue (USD $b)
* Gross revenue (before client incentives)
* Gross revenue (before client incentives)
Payment networks – Annual revenue (FY18 - FY22)
American Express has a fundamentally different business model to Visa and Mastercard, being a credit issuer as well as a payment network.
Page 1 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. 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 September 2023
Tech Insights #302
Top 50 SaaS companies (2023)
Overview
This Tech Insights report explores the current 50 largest listed global SaaS companies by enterprise value (EV). The graph below plots each company’s Rule of 40 value against its enterprise value (EV) / last twelve months (LTM) revenue. The size of each bubble is scaled based on a company’s EV relative to the sum of the top 50 EVs. On the second page, we highlight the 10 companies within the top 50 with the highest revenue, revenue growth, EBITDA, and Rule of 40 (sum of annual revenue growth and EBITDA margin) in the LTM.
Bubble scale = relative EV
Xero
Oracle
Adobe
Salesforce
Intuit
ServiceNow
ADP
Vmware
Palo Alto Networks
Shopify
Synopsys
Cadence
Workday
Atlassian
Autodesk
Snowflake
Fortinet
The Trade Desk
Block
Crowdstrike
Datadog
Palantir
Ansys
Veeva
MongoDB
HubSpot
Keysight
Splunk
SS&C
Cloudflare
Zscaler
PTC
Akamai
Tyler
Bentley Systems
AppLovin
Zebra Technologies
Paycom
Unity Software
Zoom
GoDaddy
DT
Samsara
Aspen
Manhattan Associates
Ceridian
Okta
Paylocity
SAP
Dassault Systèmes
Wolters Kluwer
-
3
6
9
12
15
18
21
-
10%
20%
30%
40%
50%
60%
70%
EV / LTM revenue
Rule of 40
Australia
US
Europe
220%
Tech Insights #302
Top 50 SaaS companies (2023)
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
4 September 2023
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-
10
20
30
40
50
60
Oracle
SAP SE
Salesforce
Block, Inc
Adobe
Automatic DataProcessing
Intuit
Vmware
ServiceNow
Palo AltoNetworks
LTM
LTM (1-year prior)
LTM Top 50 median
Revenue (USD $bn) – Top 10
Revenue growth – Top 10
EBITDA (USD $bn) – Top 10
Rule of 40 – Top 10
-
5
10
15
20
Oracle
Salesforce
Adobe
SAP
ADP
Intuit
Vmware
SS&C
Wolters Kluwer
Keysight
LTM
LTM (1-year prior)
LTM Top 50 median
-
20%
40%
60%
80%
100%
120%
140%
Aspen
Zscaler
Snowflake
Unity Software
Samsara
Crowdstrike
MongoDB
Datadog
Cloudflare
Paylocity
LTM
LTM (1-year prior)
LTM Top 50 median
220%
-
20%
40%
60%
80%
100%
120%
140%
160%
180%
Aspen
Paycom
Fortinet
Oracle
Paylocity
Cadence
Adobe
Ansys
Crowdstrike
ManhattanAssociates
LTM
LTM (1-year prior)
LTM Top 50 median
217%
Tech Insights #301
Corporate strategic transactions
Mergers & acquisitions
Corporate finance advisory
Capital raising
28 August 2023
Page 1 of 2
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Overview
In this Tech Insights report we look at a selection of corporate strategic investments and minority acquisitions in the New Zealand market. The analysis serves as useful insights for both corporatesand business owners, suggesting levels of equity corporate investors might expect for differing amounts of investment capital(the median investment of $1.8m equity and approx. 16% shareholding) and similarly amounts for minority acquisitions. We also analyse the number of investments that are followed-on and minority acquisitions that later resulted in a full acquisition by the corporate. The results suggesting a deal done with a strategic maylimit future options for a business, conversely a strategic party should be willing to put in further capital to maintain its same rights and protections.
Investment count
17
Investment range
$0.2m to $10.7m
Amount
Shareholding
25th percentile
$0.9m
11.7%
Median holding
$1.8m
16.1%
75th percentile
$4.6m
31.4%
Acquisition count
14
Investment size
$0.6m -$20.6m
Amount
shareholding
25th percentile
$1.5m
14.8%
Median holding
$7.5
29.0%
75th percentile
$13.6
41.2%
Transactions
Contact Energy
Heartland Group
Rakon
Seeka
Spark
Spark
Spark
Spark
Sprout Agritech
Sprout Agritech
Sprout Agritech
The Warehouse
Trade Me
Trade Me
Xero
Z Energy
Freightways
Genesis Energy
Heartland Group
Meridian
Rakon
The Warehouse
Trade Me
Trade Me
Trade Me
Vista Group
Vista Group
Vista Group
Spark
-
10%
20%
30%
40%
50%
60%
-
$5m
$10m
$15m
$20m
$25m
Shareholding
Amount
Investment
Acquisition
Tech Insights #301
Corporate strategic transactions
Mergers & acquisitions
Corporate finance advisory
Capital raising
28 August 2023
Page 2 of 2
DisclaimerThe information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisionsyou should seek appropriate personalised financial advice.
Transaction analysis
•
Below we look at the percentage of transactions (a total 33 investments and 25 minority acquisitions) whereby the strategic party invests after the first transaction, as well as looking at their current position as at today.
•
For approx. 41% of investments analysed, the strategic party invested additional capital into the business at a later date.
•
Note this analysis includes additional transactions not shown on the first page as either the value or ownership percentage was not disclosed.
•
Trade Me first invested $4m in Sharesies in Sep-18
•
They then invested further in Dec-19.
•
Subsequently Sharesies raised further capital with Trade Me not participating.
•
In Apr-17 Spark acquired 14% of Homes.co.nz (PropertyNZ) for an unknown amount.
•
Later the business invested $2m to increase its stake to 22.5%.
•
In 2021 Homes.co.nz was sold to Trade Me.
Transaction spotlight
•
In Feb-22 Freightways acquired 33% of GoSweetSpot for $7.5m.
•
No further transactions have occurred since.
0%
20%
40%
60%
80%
100%
Investments
Minority acquisitions
Total
End state following transaction by the strategic party
Full acquisition
Remained minority
Divestment
0%
20%
40%
60%
80%
100%
Investments
Minority acquisitions
Total
Subsequent investment by the strategic party
Subsequent investment
No further investment
•ASB Bank first acquired an unknown stake in Trade Window in Aug-19.
•ASB has since participated in three of Trade Window’s subsequent capital raising rounds and now own 21.5%
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Tech Insights #300
Xero Pushpay
300 – the perfect score
Mergers & acquisitions
Corporate finance advisory
Capital raising
21 August 2023
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Brendon McCullum celebrates his first (and NZ’s only) triple century.
Page 1 of 2
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Overview
In this Tech Insights report we celebrate publishing our 300th report by reviewing some of our favourite newsworthy, odd and interesting ‘300’ related stories. We also recognise that Clare Capital turns ten years old this year. In that time, we’ve grown to ten staff, completed 40 deals, worked with many more clients, and have over 1,500+ subscribers to this report. On the second page of this report we play a game of ‘SaaS bowling’ with two of our most mentioned companies, Xero and Pushpay. Ten frames representing ten years of Clare Capital, with ten arbitrary metrics that when achieved represent a strike. 300 represents the highest possible score in ten-pin bowling.
300 related stories
NZ hits $300m in technology M&A value.
Clare Capital
achieves 300+ subscribers to Tech Insights.
Xero hits NZD $300m in ARR, paving the way for SaaS in NZ.
Crown backed NZ Venture Investment Fund (now NZGCP) launches NZD $300m Elevate fund of funds programme.
Clare Capital is incorporated by Mark Clare.
Clare Capital’s
300th bottle of Diplomatico is drunk (est).
NZ's bird of the year competition flooded with 300+ dubious votes for the shag from an IP address in Australia.
Chorus upgrades fibre users to 300Mbps from 100Mbps connections.
New Zealand property values up by almost 300% since 2003.
Clare Capital celebrates 10 years and our 300th Tech Insights report.
Tech Insights #300
300 – the perfect score
Mergers & acquisitions
Corporate finance advisory
Capital raising
21 August 2023
Page 2 of 2
Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. 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.
Players / metric
>300k revenue/ employee
>300k customers or >3k enterprise
>300m revenue
achieve T2D3
>achieve rule of 40
>3bn market cap.
achieve >300%
price return
>3 acquisitions
global business
Tot.
X
X
X
X
X
X
Approx. >275k rev /employee
Surpassed >300k customers in HY 2014
Achieved >300m revenue in calendar year 2017
Tripled twice but was unable to double three times
Xero had 3 years where the rule of 40 value was >40%
Reached >$3bn market cap. in May 2017
Return on Xero stock is 12,500%+ since IPO
Xero has made 12 acquisitions
Operates in NZ, AU, UK, USA and more
X
X
X
X
X
X
Operates in NZ, AU and the USA
PPH has made 4 acquisitions
In 2023
PPH was acquired for $1.6bn
PPH had 7 years where the rule of 40 value was >40%
Exceeds >600k rev /employee
Surpassed >3k enterprise customers in 2016
In 2022 PPH earned NZD $291m of revenue
Exceeded T2D3
Return on PPH stock is 1,600%+ from IPO to acquisition.
SaaS bowling: Like real life bowling there are ten frames where each company must meet an arbitrary SaaS or 3 related metric to potentially earn a strike. Partial scores are also given and totalled at the end for a possible max score of 300. Note: this is intended as a light-hearted analysis of these companies.
5
–
X
X
X
X
X
X
7
/
5
3
9
–
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Tech Insights #299
Ubering towards profitability
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
14 August 2023
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Quarterly revenue and operating profit USD $bn
Overview
Founded in 2009 and headquartered in San Francisco, Uber Technologies, Inc. (NYSE:UBER) is a ride-sharing, food delivery and freight company. In the second quarter of 2023, Uber recorded its inaugural quarterly operating profit of USD $326 million. This Tech Insights report explores Uber’s revenue and cost structure, highlighting strategic acquisitions and divestures that paved the way to profitability. It also takes a closer look at the evolving ride-sharing landscape, tracking indexed share price from 30 June 2022.
Revenue disaggregated by operating segment
Sold Singapore-based car rental company for $257m
Acquired US food delivery service start-up for $3,231m
Acquired Latin American grocery delivery start-up for $1,254m
Sold 7.8% stake in Indian food delivery company for $392m
Acquired US alcohol delivery platform for $1,100m
Sold 29% stake in Russian taxi joint venture for $703m
Notable M&A transactions USD $m
Jul 19
Jan 20
Nov 20
Jun 21
Oct 21
Aug 22
Apr 23
Acquired Middle-Eastern ride-hailing company for $3,100m
Mobility
Mobility
Delivery
Delivery
Delivery
Delivery
Mobility
-
5
10
15
20
25
30
35
40
(6)
(4)
(2)
-
2
4
6
8
10
Jun 19
Sep 19
Dec 19
Mar 20
Jun 20
Sep 20
Dec 20
Mar 21
Jun 21
Sep 21
Dec 21
Mar 22
Jun 22
Sep 22
Dec 22
Mar 23
Jun 23
Gross bookings
Revenue
Operating profit (loss)
Gross bookings
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Jun 19
Aug 19
Oct 19
Dec 19
Feb 20
Apr 20
Jun 20
Aug 20
Oct 20
Dec 20
Feb 21
Apr 21
Jun 21
Aug 21
Oct 21
Dec 21
Feb 22
Apr 22
Jun 22
Aug 22
Oct 22
Dec 22
Feb 23
Apr 23
Jun 23
Mobility
Delivery
Freight
Tech Insights #299
Ubering towards profitability
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Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. 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
14 August 2023
Operating profit breakdown – Q2 2019 versus Q2 2023 USD $bn
Indexed share price of selected ride-sharing companies
Revenue by geography USD $bn
-
50%
100%
150%
200%
250%
300%
Jun 22
Jul 22
Aug 22
Sep 22
Oct 22
Nov 22
Dec 22
Jan 23
Feb 23
Mar 23
Apr 23
May 23
Jun 23
Jul 23
Easing revenue growth expectations led to a 6% drop in Uber’s share price after FY23 Q2 profit announcement.
-
1
2
3
4
5
6
7
8
9
10
Jun 19
Sep 19
Dec 19
Mar 20
Jun 20
Sep 20
Dec 20
Mar 21
Jun 21
Sep 21
Dec 21
Mar 22
Jun 22
Sep 22
Dec 22
Mar 23
Jun 23
US and Canada
Latin America
Europe, Middle East and Africa
Asia Pacific
(5.49)
(0.12)
(1.64)
(3.06)
(0.56)
(0.86)
(1.74)
3.17
0.22
0.60
2.35
(6.00)
(4.00)
(2.00)
-
2.00
4.00
Operating income
D&A
General & administrative
R&D
Sales & marketing
Operations & support
Cost of revenue
Total revenue
Other
Delivery
Mobility
0.33
(0.21)
(0.49)
(0.81)
(1.22)
(0.66)
(5.52)
9.23
1.28
3.06
4.89
-
2.00
4.00
6.00
8.00
10.00
Operating income
D&A
General & administrative
R&D
Sales & marketing
Operations & support
Cost of revenue
Total revenue
Other
Delivery
Mobility
Revenue growth coupled with leaner cost management has spurred profitability.
Tech Insights #298
MILKRUN and food delivery services
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
7 Aug 2023
Subscribe and see previous reports at clarecapital.co.nz/tech-insights
Overview
Woolworths Group (ASX:WOW) acquired the collapsed delivery startup MILKRUN in May this year. Last month Woolworths launched MILKRUN in New Zealand, shortly after announcing Countdown supermarkets will be rebranded as Woolworths. MILKRUN promises to deliver groceries to your door in under 60 minutes (via Uber drivers), with a flat rate delivery fee of $7. This Tech Insights report looks into the history of MILKRUN and the health of the wider food delivery industry. Since the 2021 highs, the combined enterprise value of twelve listed delivery companies has approximately halved to NZD $450b.
MILKRUN history
•
MILKRUN launched in Sydney in September 2021 before expanding to Melbourne, using a network of warehouses to store groceries (known as ‘dark stores’) near customers.
•
MILKRUN employed full-time delivery drivers and rented dark stores – which proved to be an expensive business model.
•
Leaked investor pitch documents in 2022 highlighted that MILKRUN was generating more than NZD $4.3m of monthly revenue but on average losing $11 per order.
•
Less than 2 years after launching, MILKRUN ceased operations in April 2023 after running out of capital and failing to attract further Series B investment.
•
Woolworths launched a quick delivery app Metro60 in Australia in June 2022, directly competing with MILKRUN.
•
Following MILKRUN’s collapse, Woolworths purchased MILKRUN in May 2023 at a fraction of the total capital raised, rumoured to be about NZD $11m.
•
Woolworths has rebranded its existing food delivery service, Metro60, adopting MILKRUN’s branding. Orders are fulfilled via the current Metro60 model, which operates from their network of Metro stores (rather than ‘dark stores’) and delivers via a rideshare partnership with Uber (rather than employing drivers).
Failed Australia grocery delivery startups – total capital raised
MILKRUN was one of the last fast delivery services left in Australia after several failed over a similar time period. Collectively, NZD $123m was raised since 2021. It was rumoured these companies unsuccessfully tried to raise a further time before ceasing operations. Our Cow acquired the assets of collapsed Voly in 2023 for an undisclosed sum.
-
20
40
60
80
100
MILKRUN
Voly
Send
Quicko
Capital raised (NZD $m)
-
20
40
60
80
100
Woolworths acquires MILKRUN (May23)
MILKRUN Series B raise (2022)
MILKRUN Series A raise (Jan22)
MILKRUN Seed raise (Jun21)
MILKRUN capital raised and sale price (NZD $m)
Series B raise was unsuccessful
56%
58%
32%
32%
44%
42%
68%
68%
35%
48%
34%
89%
65%
52%
66%
-
10
20
30
40
50
FY19
FY20
FY21
FY22
Revenue (NZD $b)
Meituan delivery revenue
Meituan other revenue
Uber delivery revenue
Uber other revenue
-
200
400
600
800
Jun19
Jun20
Jun21
Jun22
Jun23
Combined EV (NZD $b)
Other*
DiDi
DoorDash
Uber
Meituan
Tech Insights #298
MILKRUN and food delivery services
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 S&P Global Market Intelligence. 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.
Combined enterprise value of food delivery companies (NZD $b)
Mergers & acquisitionsCorporate finance advisoryCapital raising
7 Aug 2023
Name
Country
Current EV (NZD $m)
Revenue LTM (NZD $m)
Revenue growth LTM
Gross margin
EBITDA margin
Rev multiple (Jan21)
Rev multiple (Aug23)
Δ rev multiple
(since Jan21)
Δ share price (since Jan21)
Meituan
China
175,183
54,397
6%
30%
4%
8.9x
3.2x
(64%)
(53%)
Uber
United States
157,175
56,860
5%
32%
1%
5.1x
2.8x
(46%)
4%
DoorDash
United States
48,285
12,487
9%
47%
(9%)
12.3x
3.9x
(68%)
(49%)
DiDi
China
23,288
32,990
(13%)
13%
(9%)
na
0.7x
na
na
Delivery Hero
Germany
24,112
14,224
9%
26%
(13%)
4.4x
1.7x
na
na
Grab
Singapore
16,124
2,777
23%
18%
(57%)
9.5x
5.8x
(39%)
(70%)
Zomato
India
14,000
1,610
14%
61%
(12%)
na
8.7x
na
na
HelloFresh
Germany
7,916
12,870
2%
65%
3%
2.0x
0.6x
(69%)
(62%)
Just Eat
Netherlands
6,914
9,126
0%
22%
(4%)
3.2x
0.8x
(76%)
(83%)
Deliveroo
United Kingdom
2,682
3,841
4%
33%
(8%)
na
0.7x
na
na
Blue Apron
United States
93
728
1%
34%
(14%)
0.4x
0.1x
(68%)
(95%)
My Food Bag
New Zealand
76
176
(4%)
24%
8%
na
0.4x
na
na
Mean
39,654
16,841
4%
34%
(9%)
5.7x
2.4x
(61%)
(58%)
Median
15,062
10,806
4%
31%
(8%)
4.8x
1.2x
(68%)
(62%)
Comparator metrics for selected food delivery companies
Meituan is the largest listed delivery service (also retail and entertainment) and is the market leader in China, taking almost 70% of the market share. In FY21, Uber Eats (food delivery) accounted for 48% of Uber’s total revenue.
*Delivery Hero, Grab, Zomato, HelloFresh, Just Eat, Deliveroo, Blue Apron, My Food Bag
Meituan and Uber delivery revenue breakdown (NZD $b)
FY19
FY20
FY21
FY22
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