eResearch is pleased to publish a 44-page Initiation Report on Datable Technology Corporation (TSXV:DAC | OTCQB: TTMZF).
We are Initiating Coverage on Datable with a Speculative Buy rating and one-year price target of $0.30/share.
You can download our 44-page Equity Research Report by clicking on the following link: eR-Datable-2021_12_13_IR-FINAL
COMPANY DESCRIPTION:
Datable Technology Corporation is a Canadian-based software development and technology company operating in the consumer online advertising and marketing sectors. Datable offers a software as a service (“SaaS”) based Consumer Lifecycle and Data Management Platform called PLATFORM³ that enables consumer packaged goods (“CPG”) companies and consumer brands to build and launch promotions, special offers, and loyalty programs on mobile phones, websites, and microsites. Datable focuses on the collection and data mining of first-party data, information collected directly from consumers, and allows companies to communicate & build relationships directly with the consumers.
INVESTMENT HIGHLIGHTS:
- First-party Data Key to Consumers as Governments Update Privacy Laws and Cookies Set to Disappear. With stricter online consumer privacy, first-party data (opt-in) solutions become key for engaging with online consumers and Datable’s solutions focus on the collection of first-party data directly from consumers when they register to receive promotions or join loyalty/reward programs.
- Strong Organic Revenue Growth and Transformative Deal with Dabbl. Datable is in the early stage of an accelerated growth phase with revenue increasing by 91% Y/Y in Q3/2021. The acquisition of Dabbl creates a combined company that is expected to have 2021 pro-forma revenue of almost $6 million.
- Strong Fortune 500 Customer Base. Datable currently working with 25 large CPG companies and 50 of the world’s “top brands”.
- Low Valuation Multiple Compared to SaaS Peers. Datable is currently trading at 1.0x our 2022 (combined companies) revenue estimate of $9.9 million and well below Canadian SaaS comparable companies. Datable’s low revenue multiple highlights the potential for its share appreciation.
FINANCIAL ANALYSIS & VALUATION:
- We estimate revenue as follows:
- 2021E (Datable): Revenue $3.0 million;
- 2022E:(Datable & Dabbl): Revenue $9.9 million.
- We estimate an equal-weighted price target of $0.30 based on a DCF valuation ($0.40/share) and a Revenue Multiple valuation ($0.20/share).
We are Initiating Coverage on Datable with a Speculative Buy rating and one-year price target of $0.30/share.
You can download our 44-page Equity Research Report by clicking on the following link: eR-Datable-2021_12_13_IR-FINAL
FIGURE 1: DAC 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.
