Company Reports

We have written a 17-page Update Report on DATA Communications Management (DCM) after it released Q2/2024 financials. DCM is a Canadian-based communications and marketing solutions provider. Revenue increased 5.7% to $125.8 million, though below our estimate due to deferred client projects. The company remains focused on completing the integration of Moore Canada Corporation by year-end and achieving annualized cost savings of $30 to $35 million. DCM‘s strategic initiatives target improved gross margins and revenue growth, particularly through technology-enabled solutions, including its new Digital Asset Management (DAM) solution called ASMBL. Focused on the merger integration, DCM reported a 22.2% increase in Adjusted EBITDA to $16.9 million. [more]

In this short video, Chris Thompson of eResearch discusses DCM and eResearch’s 16-page Equity Research Report that covers an in-depth analysis of DCM’s Q1/2024 financial results. [more]

We have written a 16-page Update Report on DATA Communications Management (DCM) after it released Q1/2024. DCM is a Canadian-based communications and marketing solutions provider. Revenue increased to $129.3 million in Q1/2024, up 69.9% from $76.1 million in Q1/2023, but lower than our estimate of $139.0 million. Revenue fell short of expectations mainly because several projects from larger clients were postponed to later quarters this year. DCM reported Adjusted EBITDA of $18.7 million in Q1/2024, an increase of 46.2% from $12.8 million in the same quarter last year. The EBITDA growth reflects the positive impact of the MCC acquisition and ongoing efforts to improve margins and reduce expenses. [more]

Permira Advisers is acquiring Squarespace Inc. (NYSE: SQSP) in a $6.99 billion all-cash transaction, reflecting a premium to the market price and comps. This deal, endorsed by the board, signifies a shift for Squarespace towards enhanced strategic flexibility away from public market pressures. With an EV/Revenue multiple exceeding the mid-cap SaaS sector average, the acquisition underscores Squarespace‘s market position and growth potential. [more]

We have written a 17-page Update Report on DATA Communications Management (DCM) after it released Q4/2023 and 2023 financial results. DCM is a Canadian-based communications and marketing solutions provider. Revenue increased to $130.0 million in Q4/2023, up 77.9% from Q4/2022, and in-line with our estimate of $131.0 million. For the full year, Revenue hit $447.7 million, up 63.5% from 2022, and in-line with our estimate of $448.8 million. The Adjusted EBITDA for 2023 was $53.4 million, a 30.3% increase from the previous year. The Revenue and EBITDA growth were mainly attributable to the acquisition of Moore Canada Corporation, which closed in Q2/2023. The report provides an overview of DCM‘s financial results, strategic directions for 2024, and our financial estimates and target price calculations. [more]

We have written a 12-page Update Report on DATA Communications Management, a Canadian-based communications and marketing solutions provider that offers comprehensive online and offline communications and marketing solutions to businesses. The report highlights how STG Partners’ acquisition of MediaValet Inc. for $79 million showcases a favorable valuation trend for Canadian SaaS and DAM sectors. DCM’s valuation could benefit as it enhances its SaaS offerings and focuses on a Print-to-Digital transition. The Company has also successfully completed a series of sale and leaseback transactions, raising $37.8 million, and aiding in debt reduction. DCM’s recognition in the 2024 OTCQX Best 50 underscores its market performance and strategic positioning. We are maintaining our price target and recommendation. [more]

Discover the untapped potential of Canada’s North at the PDAC 2024 conference, where mining companies showcase their contributions to the global economy and green energy transition. This region, rich in critical minerals like cobalt, lithium, and gold, faces unique challenges, from environmental impacts to logistical hurdles. PDAC highlights the importance of sustainable development, Indigenous partnerships, and innovative solutions to these challenges. Join industry leaders, government officials, and Indigenous communities in discussions that shape the future of mining in the Arctic, ensuring responsible resource development and environmental stewardship. We highlight 11 companies currently operating or exploration in Canada’s North that you can meet this year at PDAC 2024. [more]

On January 24, 2024, MediaValet (TSX:MVP), a provider in Digital Asset Management (DAM) solutions, announced its acquisition by STG Partners, highlighting the increasing importance of DAM and SaaS models in the tech industry. This transaction, valued at $79 million, signifies a premium valuation for MediaValet and suggests a positive outlook for similar Canadian SaaS and DAM firms. The acquisition reflects the strategic interest in companies that offer scalable, cloud-native software solutions, underscoring the growing demand for efficient digital asset management in a content-driven business landscape. [more]