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Shares of Wishpond Technologies Ltd. (TSXV:WISH) have climbed more than 30% since Capital Ideas wrote about the company about seven weeks ago
Capital Ideas Media | February 12, 2021 | SmallCapPower: We’ve written before about how COVID-19 has accelerated the trend towards eCommerce, but Beacon Securities analyst Gabriel Leung, in a recent report, said he believes the pandemic is speeding up the rate of digital adoption by more than five years, with much of retail spending having “clearly” shifted permanently to online channels.
(Originally published on Capital Ideas Media on December 22, 2020)
He said this shift and a fragmented competitive marketplace are key factors that favour newly-listed Wishpond Technologies Ltd. (TSXV:WISH).
[Editor’s Note: Shares of Wishpond Technologies have climbed more than 30% since Capital Ideas wrote about the company about seven weeks ago.]
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Wishpond, which has been operating since 2009, provides marketing-focused online business solutions and offers an all-in-one suite of services with marketing, promotion, lead generation and sales conversion capabilities, effectively replacing a company’s marketing functions with a single, simpler-to-use SaaS platform.
Wishpond also has subscription-based managed marketing services, giving customers access to Wishpond’s team of marketing experts to support design, launch and maintenance of digital marketing campaigns including campaign design and management, online advertising SEO and landing page design.
“The transition into the online space comes with many challenges, especially for small-to-medium-sized businesses who lack the resources and expertise required to launch expensive marketing campaigns whether with agencies or niche, siloed marketing tools (which lack interoperability). We believe this has created a significant opportunity for Wishpond and its ‘all-in-one’ marketing suite,” the Beacon Securities analyst wrote.
Wishpond Technologies currently has more than 2000 customers, including blue-chip names such as Walmart and CBS, and is able to offer its marketing services at a fraction of the cost charged by digital marketing agencies for comparable solutions, according to Mr. Leung.
The company generated $6.1 million in revenue during 2019, a 41% year-over-year increase, along with Adjusted EBITDA of $100,000, with about 60% of its revenue coming from the United States.
Gabriel Leung estimates that Wishpond will realize $7.3 million in revenue and EBITDA of $70,792 in 2020, with revenue of $9.4 million and $384,476 in EBITDA during 2021, and 2022 revenue of $12.3 million and EBITDA of $1.1 million, which equates to 20% year-over-year growth in calendar 2020 and 30% for both 2021 and 2022.
Substantially all of the company’s revenue is subscription-based recurring revenue and most of Wishpond’s customers subscribe to annual SaaS plans that are paid monthly.
The Beacon Securities analyst currently has a “Buy” rating on Wishpond stock with a $2.25 per share target price.