Daily Brief TMT/Internet: ASML Holding NV, Braze Inc, Arrow Electronics, Teradata Corp, Varonis Systems, Acal PLC, Workiva Inc, Frontier Communications Parent, Iridium Communications, Kyndryl Holdings and more

• ASML reported Q124 revenues of €5.3 billion, in line with expectations, down 27% QoQ and down 21% YoY.
• Guided Q224 for €5.95 billion, down ~23% YoY. This implies H224 will have to be much stronger than H124 in order to maintain full year 2024 guidance of flat YoY
• New order intake was €3.6 billion, down significantly from the €9.2 billion in the prior quarter, and challenging the narrative of a strong growth year in 2025

• Braze Inc. had a productive Q4 for the fiscal year 2024, reporting robust revenue growth and notable leaps in operational efficiency.
• The company generated $131 million in revenue, up 33% year-over-year and 6% quarter over-quarter.
• It is important to mention that these figures were achieved despite macroeconomic headwinds and tight scrutiny of budgets, reflecting the high ROI and enduring value of Braze’s customer engagement platform.

• Arrow Electronics had a decent performance in 2023 despite the challenging macroeconomic conditions and inventory-related issues.
• Arrow Electronics managed to post a full-year revenue of $33.1 billion and a non-GAAP operating margin of 4.8%.
• The company also reported strong cash flow from operations, enabling the repurchase of approximately $750 million in shares over the year.

• Teradata Corporation, a leading hybrid multi-cloud analytics and data platform company, recently held its fourth quarter and full year 2023 earnings call, which indicates the company’s progress and future outlook in its sector.
• The company emphasizes its focus on customer satisfaction by delivering solutions for complex data and analytics problems.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Varonis Systems Inc. showcased strong performance in the fourth quarter and full year 2023 as they continued their transition towards Software-as-a-Service (SaaS).
• The successful transition of their offerings led to an incredible growth of the SaaS Annual Recurring Revenue (ARR) from several million dollars in 2022 to approximately $125 million by the end of 2023.
• This growth in SaaS ARR represented approximately 23% of the total company ARR at year-end.

discoverIE anticipates reporting FY24 underlying EPS in line with board expectations. After a period in mid-FY24 of working down inventory, customers appear to be reverting to normal ordering patterns, with Q424 organic revenue growth of 2% y-o-y and 11% q-o-q and a strong pipeline of design wins at year-end. We have revised our forecasts to reflect lower revenue, partly due to a disposal, but maintain our profit forecasts, which results in operating margin expansion in FY24 and FY25.

• Workiva ended 2023 with solid Q4 results, delivering an 18% growth in subscription revenue and a non-GAAP operating profit that exceeded its guidance.
• For the total of 2023, the firm overshot its earlier set guidance in February and Q3 2023, with a 20% growth in subscription revenue and 17% in total revenue.
• This marks Workiva as a growth player.

• FYBR had a strong performance in Q4, achieving key milestones and demonstrating the effectiveness of their fiber-first strategy.
• The company reported EBITDA growth for the first time in over a decade, marked by the company’s hard operational execution and sustainable strategy.
• Furthermore, the company ended the year with 6.5 million fiber passings, representing 65% progress towards its target of building 10 million fiber locations, making it the largest pure-play fiber provider in the country.

• Iridium Communications Inc.’s fourth-quarter 2023 earnings indicated strong performance with impressive service revenue and operational EBITDA. The company reported more than $300 million in pro-forma free cash flow for the full year, emphasizing growing cash flow as its primary narrative.
• The satellite communications provider has generated about $1 billion in free cash flow since turning cash flow positive in late 2019 after completing its second-generation constellation.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• KD highlights several milestones on its Fiscal Third Quarter 2024 Earnings.
• The company reported strong execution and accelerated progress as a leader in mission-critical IT infrastructure services.
• Its strategy surrounds the creation of alliances, advanced delivery, account initiatives, KD Consult and KD Bridge, contributing to expectations of profitable growth and an increased full-year earnings outlook.