eResearch is pleased to publish an Update Report on Moovly Media Inc. (TSXV:MVY). The report covers the Company’s Fiscal Q3/2021 Financial Results.
Due to the slower revenue growth than we estimated, we are substantially lowering our revenue growth assumptions and lowering our Target Price to $0.75 from $1.40, and changing our rating to Speculative Buy from Buy.
You can download the full 18-page report by clicking here: eR-MVY-UR-2021-09-13_v15-FINAL
Moovly Media Inc. is a cloud-based media platform for professional-level video production for businesses, educators, and home use. The Company focuses on providing leading-edge software that allows users to easily create professional live-action, animation, motion graphics, screenshots, or whiteboard videos without being an expert in video creation. Moovly is a leading provider of web-based video tools for creating videos and video presentations targeting marketing, corporate communications, and storytelling.
FQ3/2021 QUARTERLY HIGHLIGHTS:
- Revenue down 20% Y/Y as COVID-19 sales bump eases. Moovly’s sales for the three months ended June 30, 2021, were $0.30 million, a decrease of 20%, compared to $0.37 million in the same quarter a year ago, and lower than our estimate of $0.70 million.
- Sales & Marketing efforts directed towards larger companies, education groups, and strategic partnerships. Expenses in the quarter were almost double that of FQ3/2020 as the Company directed recently raised funds into Sales & Marketing efforts to target larger customers.
- Strategic partnerships are key to driving revenue higher. Enterprise client revenue represents the largest revenue opportunity. We are waiting for an announcement that would show the sales potential as we estimate one Enterprise customer could increase revenue by $1.1 million annually.
FINANCIAL ANALYSIS & VALUATION:
- Due to the slower revenue growth than we estimated, we are substantially lowering our revenue growth assumptions and also dropping the EV/Revenue multiple to 20.0x from 40.0x when we calculate the target price based on the one-year forward Revenue.
- The revised Revenue estimates are:
- F2021E: Revenue $1.5 million, down from $2.5 million;
- F2022E: Revenue $3.0 million, down from $8.0 million;
- F2023E: Revenue $6.0 million, down from $12.0 million.
- We calculate an equal-weighted price per share of $0.75 from a multiple of 20x the one-year forward Revenue of $2.6 million and a DCF from a multiple of 30x the five-year forward terminal EBITDA of $11.4 million at a 12% discount rate.
We are lowering our Target Price to $0.75 from $1.40 and changing our rating to Speculative Buy from Buy.
You can download the full 18-page report by clicking here: eR-MVY-UR-2021-09-13_v15-FINAL
FIGURE 1: Moovly 1-Year Stock Chart
Notes: All numbers in CAD unless otherwise stated. The author of this report, and employees, consultants, and family of eResearch may own stock positions in companies mentioned in this article and may have been paid by a company mentioned in the article or research report. eResearch offers no representations or warranties that any of the information contained in this article is accurate or complete. Articles on eresearch.com are provided for general informational purposes only and do not constitute financial, investment, tax, legal, or accounting advice nor does it constitute an offer or solicitation to buy or sell any securities referred to. Individual circumstances and current events are critical to sound investment planning; anyone wishing to act on this information should consult with a financial advisor. The article may contain “forward-looking statements” within the meaning of applicable securities legislation. Forward-looking statements are based on the opinions and assumptions of the Company’s management as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein. Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Please read eResearch’s full disclaimer.
