SA News • Nov. 6, 2014
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Cloud Marketer Lyris Could Double And Still Be Undervalued
- The stock is down ~50% since April due to concerns regarding a slowdown in growth and transition away from lower margin legacy products to SaaS subscriptions.
- However, this is more than reflected in the 4x EBITDA multiple and 0.5x revenue multiple, a significant discount to its peers, many of which generate no EBITDA.
- Results should begin to improve over the next year due to continued strong demand for cloud-based digital marketing solutions, a recent enhancement to its core product and higher market share.
- In addition to the high demand created by the ongoing shift to a “Moneyball” approach to marketing, the 90%+ recurring revenue and 60%+ gross margin support a higher multiple.
- The recent swing to profitability even on a GAAP basis after years of losses should enable utilization of the $161 million of NOLs.
LYRI vs. ETF Alternatives
Lyris is a global provider of innovative email and digital marketing solutions that help companies reach customers at scale and create personalized value at every touch point. Lyris? products and services empower marketers to design, automate, and optimize experiences that facilitate superior... More
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