eResearch | In this short video, Tracy Weslosky of InvestorIntel interviews Chris Thompson of eResearch about Initiating Coverage on Datable. The 44-page report covers company and investment highlights, and an overview of consumer online advertising and marketing sectors.
Datable offers a SaaS-based Consumer Lifecycle and Data Management Platform that enables CPG companies and consumer brands to build and launch promotions, special offers, and loyalty programs on mobile phones, websites, and microsites.
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. 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.
We are Initiating Coverage with a Speculative Buy rating and one-year price target of $0.30.
You can download our 44-page Equity Research Report by clicking on the following link: eR-Datable-2021_12_13_IR-FINAL
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