EDISON INVESTMENT RESEARCH LIMITED (LON:KEFI) Checkit (CKT): SaaS software for the deskless workforce
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Edison Investment Research Limited
London, UK, 20 December 2021
Checkit (CKT): SaaS software for the deskless workforce Checkit's SaaS platform is designed to bring visibility to the operations of businesses with dispersed, deskless workforces. Checkit is focused on driving adoption of its software and over the last year has invested to support its shift to a pure SaaS business model. Net proceeds of £20m from the recent placing will be used to accelerate growth plans, with the US a particular focus. In our view, consistent growth in recurring revenues and an expanding customer base should help to reduce the valuation discount to software peers.
On an EV/sales multiple of 1.6x for FY22e and 1.9x for FY23e, Checkit trades at a significant discount to the UK software sector (5.4x current year sales, 4.2x next year sales) and US SaaS peers (16.0x CY, 12.3x NY sales). If Checkit were to trade on the UK average for FY23e, it would be worth 70p per share. Key triggers to help Checkit attract a multiple more in line with SaaS peers include evidence that customers are signing up to use its software, existing customers are expanding their usage and non-recurring revenues are being converted to subscription services.
All reports published by Edison are available to download free of charge from its website About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Katherine Thompson +44 (0)20 3077 5730 tech@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
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1259518 20-Dec-2021