In today’s briefing:
- Digital Turbine: A Pivot Is In Sight
- The Oracle Playbook Goes Mainstream
- Company Appears to Be Back in Growth Mode in 2023 After a Challenging 2022
- HNI Announces Acquisition of Kimball International; Focus on Strategic and Cultural Alignment
- Zebra Technologies: Improved Offerings For Industrial Automation & Other Drivers
- Working to Make Batteries Safer and More Efficient
- Transformed Fulfillment Model Driving Results
- Perpetua Resources Corp (PPTA) Update Note Filling the US Critical Minerals Supply Gap 08032023
- Guidewire Software: Major Drivers
- ARLO: Profitability Back in View
Digital Turbine: A Pivot Is In Sight
- Digital Turbine, Inc.’s misfortunes are about to pivot, providing ad spending reverts to its average growth trajectory.
- The company has a novel business model, and constant expansion by integrating growth ideas such as a Shopify-esque platform could yield substantial financial benefits, according to the company.
- Digital Turbine, Inc. (NASDAQ:APPS) stock has suffered from a trying time during the past year, conveyed by its more than 70% year-over-year drawdown.
The Oracle Playbook Goes Mainstream
- Oracle’s strategy is being acknowledged by one of its major peers – Salesforce.
- Oracle does not appear among the top three cloud infrastructure players, but it doesn’t need to.
- Oracle is expected to deliver another strong quarter, investors should remain focused on the long-term positioning of the business.
Company Appears to Be Back in Growth Mode in 2023 After a Challenging 2022
- Gaia reported 4Q22 revenues of $19.6 million versus $20.8 million in 4Q21, and 2022 revenues of $82.0 million versus $79.6 million in 2021.
- Given the small Yoga International acquisition in December 2021, this implies some revenue contraction in the core business for 2022.
- Despite the top-line challenge, net income was slightly positive for the year after adjusting for one-time legal fees and the anticipated SEC settlement accrual, which confirms the resilience of Gaia’s financial model.
HNI Announces Acquisition of Kimball International; Focus on Strategic and Cultural Alignment
- Before market open on March 8, HNI announced the acquisition of Kimball International (NASDAQ: KBAL), a smaller competitor of HNI’s Workplace Furnishings segment.
- HNI will pay about $485 million, consisting of cash ($9/KBAL share), stock (0.1301 HNI/KBAL share), and ~$46 million in KBAL net debt.
- We see the deal as an excellent fit on strategic and cultural levels.
Zebra Technologies: Improved Offerings For Industrial Automation & Other Drivers
- Zebra Technologies had a strong finish to the year, with profitability and sales near the high end of the outlook of the company and an all-around beat in the fourth quarter.
- Latin America sales increased with strong growth in Mexico and Brazil.
- However, due to an uncertain microenvironment, Zebra Technologies continue to see elongated sales cycles and softening of demand.
Working to Make Batteries Safer and More Efficient
- Multiple solutions for the growing problem of battery safety.
- META is developing two technologies that can make lithium-ion batteries safer and reduce material needs to lower weight and increase range.
- We highlight META’s NPORE® and NCORE™ technologies on the following pages.
Transformed Fulfillment Model Driving Results
- DistributionNOW is reaping the rewards of the steps management began taking a couple of years ago to transform its fulfillment model.
- A client-focused global technical sales force aims to make DistributionNOW a strategic partner with customers to help them manage their energy supply chain.
- The fulfillment model, if built around Supercenters, combines multiple business lines into a single location, making it easier to work with both suppliers and customers.
Perpetua Resources Corp (PPTA) Update Note Filling the US Critical Minerals Supply Gap 08032023
- Perpetua Resources Corp. (Nasdaq: PPTA; TSX: PPTA) is an Idaho based (Stibnite jurisdiction), gold-antimony-silver (Au-Sb-Ag) junior explorer/producer.
- ACF is releasing a aluation increase for PPTA based on milestones achieved since our initiation note. ACF identifies PPTA as a US national strategic asset (Sb) and best-in-class gold asset.
- PPTA is an ESG leader amongst junior miners. PPTA holds a unique antimony (Sb) reserve in the US and is positioned to be the only domestically mined source of Sb.
Guidewire Software: Major Drivers
- Guidewire Software is delivered a mixed set of results in the recent quarter with revenues above Wall Street expectations.
- Both ARR and subscription revenue and particularly subscription and support gross margin, finished ahead of the expectations of the management.
- In the quarter, Guidewire Software executed several new InsuranceSuite production deployments on the Guidewire Cloud Platform, including DEFINITY Insurance.
ARLO: Profitability Back in View
- ARLO initiated a new marketing strategy based on price and it seems consumers have responded well in an otherwise tough market backdrop.
- The sell through led to ARLO growing the number of paid subscribers more than we were expecting, and on pace to surpass 2 million paid subscribers in first quarter 2023
- The revenue achieved in the fourth quarter was approximately $3 million higher than the top end of the guidance range ARLO had previously provided
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