Daily Brief TMT/Internet: Cloudflare , Force Mos Technology, Fortinet Inc, Vishay Intertechnology, ROBLOX , Sailpoint Technologies Holdings, Klab Inc, Koninklijke KPN, Nebius Group, Take Two Interactive Software, Inc and more

• Cloudflare Inc. concluded 2024 with a robust performance, reporting notable financial and operational achievements for the fourth quarter.
• Revenue reached $459.9 million, marking a 27% increase compared to the previous year.
• The company reported significant growth in its large customer segment—those contributing over $100,000 annually—with a year-over-year uptick of 27% in this segment, representing 69% of total revenue, up from 66% the previous year.

• China smartphone market in 4Q 2024 expected to see growth, intensifying competition among top brands.
• GlobalWafers remains stable despite uncertainty around US CHIPS Act funding.
• Yageo surprises with Shibaura Electronics takeover bid, Foxconn proposes partnership with Nissan, Forces Mos wins patent case against Asus.

• Fortinet Inc.’s fiscal results for the fourth quarter and the entire year of 2024 demonstrate both strengths and challenges within the company.
• Positively, Fortinet achieved a total revenue growth of 17% for the quarter, marking a significant upturn, especially in product revenue, which attained an 18% increase—the best in six quarters.
• The company’s strategic focus on secure networking, particularly in Unified SASE, resulted in a growth of 13% for this segment, making up 23% of the company’s business.

• Vishay Intertechnology has recently reported its fourth-quarter and fiscal year 2024 financial results, highlighting both challenges and opportunities.
• The company’s quarterly revenue was reported at $714.7 million, a slight decrease from the previous quarter, and total revenue for the year stood at $2.9 billion, reflecting a decline from the prior year.
• This downturn was attributed to an extended period of inventory correction, primarily impacting the automotive and industrial end markets in Europe, Asia, and the Americas.

• Roblox Corporation recently reported its financial results for the fourth quarter and full fiscal year of 2024, showcasing both significant achievements and areas for consideration.
• The company’s financial performance exceeded its guidance across key metrics, reflecting robust growth despite challenging comparisons to prior periods.
• On the positive side, Roblox posted a 32% year-on-year increase in revenue for Q4, reaching $988 million, exceeding the high end of its guidance.

• SailPoint, a Thoma Bravo-backed provider of identity security for the modern enterprise, priced its IPO at $23.00/share and raised $1B+.
• The offering was 20+ times oversubscribed, according to Bloomberg. However, shares fell as much as ~4% on the first day of trading.
• I think the stock was fairly valued vs. peers given 20%+ growth rates at scale. Surprisingly, the company boosted its initial price range and priced IPO at top of range.

• Revenue decreased by 22.5% YoY to JPY8.3bn, with Japan’s revenue down 38.0% YoY and overseas down 6.9% YoY.
• Operating loss was JPY1.3bn, with cost-control measures curbing deficit expansion despite decreased sales and gross profit.
• FY12/25 earnings forecast undisclosed due to uncertainty in EA SPORTS FC™ TACTICAL project; focus on title development.

• In this edition: • KPN | Tower Company joint venture with ABP will start its operations today • Unilever | Ice Cream unit to be listed in Amsterdam, London and New York • SBM Offshore | Guyana offshore oil projects recovering investments quickly • Odido | current shareholders are exploring options; IPO possibly in 1H24

• Nebius Group NV purchased assets from oligarchs at a deep discount to become owners of the “new” Yandex
• Value of NBIS is currently uncertain but there is potential for significant upside as they rebuild the business
• Author sees NBIS as a promising opportunity but urges further discussion and analysis before investing

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The latest financial earnings report for Take-Two Interactive Software, Inc. presents a balanced outlook on the company’s operations and future growth prospects.
• The company reported net bookings of $1.37 billion for the third quarter of fiscal 2025, in line with its guidance range.
• Significant strength was noted in NBA 2K, pushing net bookings within expectations despite some moderation in mobile franchises.