Daily Brief TMT/Internet: Dropsuite Ltd, DeepSeek, Sailpoint Technologies Holdings, SK Hynix, Zegona Communications, ASML Holding NV, Carta Holdings, Inc., Pca Corp, Alarm.Com Holdings and more

• On 28 January, Dropsuite Ltd (DSE AU) entered a scheme implementation deed with NinjaOne at A$5.90 per share, a 34.1% premium to the undisturbed price of A$4.40 per share.
• The offer is conditional on shareholder and FIRB approval. The vote is low-risk as the largest shareholder has provided an irrevocable. 
• The offer is attractive and represents an all-time high. At the last close, for a 20 May payment, the gross/annualised spread was 3.0%/10.3%.

• Deepseek, formerly a quantitative hedge fund, has transitioned to building foundational AI models, causing a stir in the tech community
• Their recent paper on transformer LLM models has sparked interest and confusion, particularly regarding training and inference costs
• Despite claims of training on a small pool of GPUs, it is speculated that Deep Seq has access to tens of thousands of GPUs, challenging traditional notions of cost and capabilities in AI research.

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• SailPoint, a founder-led provider of identity security for the modern enterprise, aims to raise up to $1B to pay off debt.
• The company ended last quarter at $813M of implied ARR and I see a clear path to $1B+ ARR in FY26 ended Jan 30, 2026.
• I believe SailPoint may consider IPO at valuation above take-private transaction of ~$6.9B in 2022. The company is expected to go public in February.

• Market sees major losses in tech complex, catalyzed by introduction of Chinese AI model Deepseek
• Concerns arise about cheap Chinese competitor impacting market heavily invested in AI companies
• Zvi Moshevitz, AI expert, discusses Deepseek model’s training cost and optimization techniques

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• As we hit Chinese New Year break,  we want to examine if Hynix’s earnings and investor call met investor expectations
• 6 key questions going in and where we are post SK Hynix (000660 KS) reporting and before Samsung Electronics (005930 KS) reports early February
• The consensus is that the key questions were not answered.  Well, not all answered and some remains to be seen. 

• Zegona is a special purpose vehicle in the telecom sector that owns Vodafone’s operations in Spain
• The company has potential plans to monetize Vodafone Spain’s fiber assets and turnaround the underperforming business
• Zegona could see a fivefold increase in stock value, presenting an opportunity for investors seeking high growth potential

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.

• In this edition: • AkzoNobel | 4Q24 shows a mixed picture; some bright spots ahead • ASML Holding | reiterates FY25 and long-term outlook / record quarterly FCF • InPost | AliExpress survey shows Polish shoppers are looking for ‘engaging experiences’

• CARTA HOLDINGS (hereafter, the Company) announced its Q3 FY2024/12 results on November 13, 2024, which were in line with its upwardly revised forecasts disclosed with Q2 results.
• The Company positioned FY2024/12 as the first year toward its sharp recovery following aggressive cost structure reforms in FY2023/12, and expects full- year operating profit to rise 53.7% YoY to JPY 2,000 mn as a signal to the start of its comeback.
• Q4 is the Company’s busy season, and investors likely have a certain level of interest in where actual results come in.

• In Q3 FY03/25, the company reported revenue of JPY12.1bn, operating profit of JPY2.1bn, and net income of JPY1.4bn.
• Revenue by product category showed cloud services increased 28.2% YoY, while conventional software decreased 53.3% YoY.
• FY03/25 forecasts include revenue of JPY16.5bn, operating profit of JPY2.4bn, and a dividend of JPY83.00/share.

• Alarm.com has high dollar retention rates and is focused on diversifying revenue through growth initiatives, accounting for 30% of revenue and growing over 20% annually
• The company has potential for improvement in EBITDA margins and could be a target for activists or a PE buyout due to its strong financial position
• Founded in 2000 and incubated within MicroStrategy, Alarm.com has a history of innovation in the security products industry and is led by CEO Stephen Trundle

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.