Professional Documents
Culture Documents
Blake Klasios
Siddhant Dilawari
Avneet Multani
Jeffery Lee
Adam Steinberg
Jerry Du
Table of Contents
I.
II.
III.
IV.
V.
VI.
Business Overview
Management Overview
Investment Thesis
Valuation
Risks and Catalysts
Conclusion
Business Overview
Business Overview
Business Description
LA, 6%
Market Cap
52 Week Range
Current Price
EPS
Dividend
NA, 43%
EMEA,
34%
Key Financials
Ticker
AP,
17%
Market Performance
NASDAQ: QADA
385M
25
23
$17.05-23.07
21
$21.49
19
0.62
17
1.12%
15
Business Overview
QADs Approach to ERP The Effective Enterprise
At the core of our solutions is our ERP suite called QAD Enterprise Applications and is also deployed in the cloud as QAD Cloud
ERP
Business Overview
Revenue Breakdown
13%
9%
49%
Licenses
Subscription
Services
29%
On-Premise
Licenses
New customers/users
New divisions
New models
Services
New implementations
Upgrades
Maintenance
High Retention
Maintenance
Cloud
Subscriptions
New customers/users
New divisions
New models
Business Overview
QAD Solutions
Services Provided
Industries Served
31%
21%
16%
32%
Consumer &
Food/Beverage
Automotive
HighTech & Industrial
Life Sciences
Business Overview
ERP (Enterprise Resource Planning)
With ERP, each department still has their own system, but
they can communicate and share information easier with the
rest of the company.
The Cloud
QAD delivers our core ERP offering and many other solutions
in the cloud, charging a subscription fee for access to these
software-as-a-service (SaaS) solutions. We refer to these
solutions collectively as components of the QAD Enterprise
Cloud. Within the QAD Enterprise Cloud we have QAD Cloud
Apps, QAD Cloud Services and the QAD Cloud Portal.
Cloud Benefits
Class B
20%
Class A
80%
Class A
Class B
Institutions 17%
Institutions 23%
77%
83%
Investment Thesis
I. Transition from on-premise software to cloud-based
II. Improving margins from conversion
III. Undervalued compared peers (Valuation)
40-50%
Companies in the automotive, consumer, food and beverage, technology, and life sciences
industries are interested in paying a subscription fee instead of maintaining IT infrastructure
Conversion to cloud
Grow
cloud
revenues
Revenue Breakdown
On
premise
customers
10%
Cloud
On Premise
Realize 34x the
annual
revenue
Convert to
cloud
90%
Valuation
I. Discounted Cash Flow
II. Comparable Companies
Name
P/E
GSB US Equity
GLOBALSCAPE INC
66.5
21.1x
8.9x
1.6x
RKN CN Equity
329.7
N/A
17.4x
1.1x
IL US Equity
585.4
N/A
18.8x
2.x
VDSI US Equity
868.3
26.8x
22.2x
4.9x
PRGS US Equity
1,352.8
24.4x
10.5x
3.x
PEGA US Equity
PEGASYSTEMS INC
1,513.5
46.6x
17.9x
2.3x
MSTR US Equity
MICROSTRATEGY INC-CL A
1,845.3
123.8x
49.1x
2.6x
CVLT US Equity
2,033.4
56.6x
29.2x
3.2x
SWI US Equity
SOLARWINDS INC
3,652.4
41.9x
25.4x
8.2x
MEDIAN
41.9x
18.8x
2.6x
AVG
48.7x
22.2x
3.2x
MIN
21.1x
8.9x
1.1x
25TH
25.6x
17.4x
2.0x
75TH
51.6x
25.4x
3.2x
MAX
123.8x
49.1x
8.2x
37.4x
12.1x
0.8x
QADA US Equity
QAD INC-A
385.5
Valuation: DCF
$26.16
Valuation: DCF
Catalysts
Thank You.