ATV - Activeport Group

[Dona Ferentes]

Activeport Group Ltd (ATV) is gearing up for a late September 2021 IPO.

White label software for Telcos, ISPs and System Integrators:
"Simply better SD-WAN 2.0 and whole network orchestration from an Australian software company. Telcos and system integrators can add their choice of low cost hardware, brand the SD-WAN as their own, and sell a more affordable solution."

Listing date	27 September 2021 11:30AM AEST ##
Contact details	https://www.activeport.com.au/ Ph: +61 8 9278 2500
Principal Activities	Computer Services
GICS industry group	TBA
Issue Price	AUD 0.20
Issue Type	Ordinary Fully Paid Shares
Security code	ATV
Capital to be Raised	$15,000,000
Expected offer close date	6 September 2021
Underwriter	Not underwritten. Bridge Street Capital Partners Pty Ltd (Lead Manager)

 

[Dona Ferentes]

from an AFR article found on the Activeport website

Magnolia Capital Group has come on board as a cornerstone investor in telecommunications software provider ActivePort and its initial public offering, which has already exceeded its $10 million minimum capital raise. The company, which provides SD-WAN orchestration software to telecommunications companies, internet service providers and systems integrators, is now targeting $15 million, with the raise priced at 20¢ per share.

At the maximum raise, the market capitalisation of ActivePort will be $52 million.

The lead managers ... have been emphasising ActivePorts similarities to Megaport, which has a market capitalisation of $2.6 billion, having had an almost 600 per cent share price jump in the last five years.

The white label cloud connectivity provider is run by telco veteran Karim Nejaim, who was most recently head of product engineering at Telstra.

Its software is used by customers to manage all aspects of their global data networks on one screen. This covers transit carriers such as Megaport, the big cloud providers and also telco networks. It has customers across South America, Southeast and Central Asia.

We are strong supporters of its unique single pane orchestration tool that matches the worlds best SD WAN providers during a time when efficiency and choice is at the forefront of individuals minds, Magnolia Capital chief investment officer Mitchell Atkins said

 

[Dona Ferentes]

nearly 4 weeks late in making it to the boards ....... Day One on the ASX for ActivePort: opened at 20c, traded between 21c and 19.5c all day, which is where it ended up

(The lead managers ... have been emphasising ActivePort's similarities to Megaport, which has a market cap of $2.6 billion, having had an almost 600 per cent share price jump in the last five years...) (lol).

 

[Dona Ferentes]

and now 16c , which is the best it has been over the last 4 weeks

Highlights:
• Total revenue of $2.49M in Q1 FY22 up 49% on previous corresponding period.
• Strong start to Q2 FY22, with revenue of $1.03M in October.
• Nine new SD-WAN partners signed in October, up from five the previous quarter.
• Deploying orchestration software to telecommunication companies in 14 countries.

ActivePort generates revenue from sales of software licenses and provision of technology services. High margin, recurring software license revenue growth is a key focus for the Company. Following a successful IPO in October, ActivePort is pleased to report strong revenue growth and an increasing contribution from software sales.

Karim Nejaim, ActivePort CEO, commented: "The number of customers for our software is increasing at pace as a result of the sales team’s hard work over the past four months. We’ve focussed on selling ActivePort to channel partners who onsell it to their customers, and the success of that strategy is beginning to show.”

ActivePort’s technology is in demand globally and with ActivePort orchestration software being deployed at telecommunication operators in 14 countries, the Company is positioning itself to become an international leader in the network and cloud orchestration market.
ActivePort signed nine new partners in October, up 180% from the five signed in Q1 FY22. Partners are now completing sales to their customers, which will drive accelerating software revenue growth over the coming months.

ActivePort’s Partner contracts are not individually material.

 

[Dona Ferentes]

good pitch from ATV; so why the dive from 20c to 15c since IPO and stubbornly staying there? Is there a profile; does using aggregators and white label taking the cream off the top?

ActivePort (ASX: ATV) – Webinar Presentation - Sharecafe

Karim Nejaim - CEO - ActivePort Group provides a software-defined networking tool and SD-WAN, to help companies run their technology their way and facilitate global connectivity.

www.sharecafe.com.au

 

[Dona Ferentes]

good pitch from ATV; so why the dive from 20c to 15c since IPO and stubbornly staying there?

and if it could have stayed there until close today, then at 15c it would have been a good entry point for the Jan Comp.

But no, someone buying up in relatively big licks, so we now sit at 16.5c , was 17c until 1:59:34pm .... And 10% is a hefty margin in the monthly comp.

 

[Dona Ferentes]

and if it could have stayed there until close today, then at 15c it would have been a good entry point for the Jan Comp.

So, will 13.5c be it for the Feb comp entry?

I don't hold, but there is an update in 02 Feb, which could add to the picture put out in the Quarterly. Most early day tech stocks have been sold down, justifiably so if the enthusiasm was on a price per sales metric (and elevated at that). Maybe the market’s current aversion to high-growth tech stocks weigh on the valuation?

revenue growth for the second quarter of FY22 and rapid progress in deployment of software to its channel partners, globally.
Highlights:
• Strong revenue growth from managed services and software licenses
• Deploying ActivePort software to 20 local channel partners in APAC
• Deploying ActivePort to 10 global telecommunications companies world-wide
• Progressing software sales agreements with customers in 11 countries

 

[Dona Ferentes]

More than a year later, and a few slips along the way. Now 15c

Now stating "no longer a start-up, now a scale up" citing a $3 mill 10 year contract just signed. This may be the case? Most of their business seems to be software into Asian/ Indian ICTs. They could be on the cusp. But some will be how they account for/ treat any growth.

• At end of Q2 FY23 quarterly revenue of $5.620M, up 51.4% from $3.712M in Q1.
• Our software revenue in Q2 rose 160% on Q1 to $1.886M. Total software revenue for FY22 was $860K.

The status of the business is such that:
• We are confident that the market has validated the use and value of our software.
• We have a strong deal pipeline to the end of CY23.
• Business needs to scale internationally and ATV Management has started that scaling process now.
• Time is of the essence. We must capitalise on the opportunities now while we have no effective competition.

Six months ... clearly someone exited on last Q numbers. Are green shoots appearing?

 

[Faramir]

I would like to choose ATV for May 2023 tipping comp.

Not sure why I choosing ATV. Thank you @Dona Ferentes for the info posted above. It saves me having to learn anything about this stock ?

 

[Dona Ferentes]

Now 10c. .... from two months ago, and in rather conditional language ...

ATV is pleased to announce it has entered into a non-binding letter of intent to progress a potential share purchase transaction of Turnium Technology Group Inc.

... but nothing has emerged since. Must be hard to make it stick.

Turnium is an existing technology supplier to ActivePort and an industry leader in cloud-native software-defined wide area networking (SD- WAN) software development.
Highlights:
• Considering a non-cash 100% share swap of Turnium shares for ActivePort shares.
• Canaccord Genuity Group Inc is engaged as Turnium’s advisors to the transaction.
• Turnium reported revenue of CAD $5.1M for the full year ending September 2022.
• Turnium provides an SD-WAN plugin to ActivePort’s orchestration platform.
• The combination would bring valuable engineering capacity to ActivePort.
• ActivePort’s reach would be extended into North American markets.
• Negotiations are ongoing under a non-binding letter of intent.

 

[Dona Ferentes]

under 10c

But... what does it really mean?
...and, will it play in Peoria?

(DNH)

 

[Dona Ferentes]

11c at close .... holding off above ten cents, recently .

Business Commentary
ActivePort is experiencing unprecedented demand for its network orchestration software from the telecommunications sector. The pipeline of new projects continues to grow and revenue from existing customers is forming a strong and rapidly growing recurring revenue foundation for the company,
complimented by larger payments for project work and up-front license fees.

ActivePort is focussing its efforts on two channels to market for the software business, its direct sales to the telecommunications sector and its channel sales via the recently launched self-service portal www.globaledge.network. Global Edge offers a new recurring revenue opportunity in FY24.

ActivePort software orchestrates edge networks, core networks and cloud infrastructure. The recent trend to adopt Artificial Intelligence solutions has seen heightened interest in ActivePort’s Cloud orchestration tools for GPU infrastructure. ActivePort is engaged in significant AI projects in the telecommunications sector that could deliver strong additional revenue opportunities in FY24.

ActivePort’s managed services businesses delivered strong results to end the year with costs down and revenue up to deliver improved margins.

Overall ActivePort is growing rapidly and generating strong margins driven by outstanding results from the software business.

$1.4 million in the kitty

 

[Dona Ferentes]

Recently ran to 15c, and there's been a call for more cash, at 10c plus some oppies. Opportunistic perhaps. Will have cash on hand close to $6.75M after this.

ActivePort Completes Scale-Up Round of $2.5M . Placement closed heavily over-subscribed

Highlights
• Enthusiastic support from new and existing investors will deliver working capital of $2.5M, seeing the Company well-funded heading into its scale-up phase in FY24.
• Funds will be used to expand the technical delivery team and accelerate conversion of the exceptionally large pipeline of new software installations to sustained recuring revenue.
• The launch of the Global Edge Network-as-a-service portal in June 2023 will deliver additional profitable revenue growth throughout FY24 as the organisation scales up its technical team.
• ActivePort delivered software revenue growth of 692% in FY23, to $8.3M up from $1.2M and has the opportunity to deliver strong growth in FY24 with an expanded technical delivery teamfunded by this placement.
• ActivePort achieved a break-even EBITDA result in FY23 and aims to maintain profitability along with accelerated growth throughout FY24 as it builds a strong foundation of long-term recurring revenue.

 

[Dona Ferentes]

since listing two years ago at 20c, ATV has been pushing an active narrative, though results are hard to find...

.
Lots of announcements about escrow, and newly issued securities. Board and management keen to add, too
.
and what will the future portend?

 

[Dona Ferentes]

are they the next Megaport? not yet.
.
... progress on multiple fronts, winning new contracts, launching new product features and completing projects.
- Revenue from operations was up 7% to $3.73M from Q1 and operating cash flow was positive $1.30M following receipt of our R&D refund for FY23, taking net cash and equivalents up in the quarter from $1.66M at the end of Q1 to $2.58M at the end of Q2.
- Software sales for the quarter were exceptional with contracts totalling $6.8M closed of which $4.5M is due for payment in calendar year 2024.

Business Highlights:
• Won new software contracts worth a total $6.79M in the quarter of which $4.53M is due for payment in calendar year 2024.
• Added scope to the Radian Arc Pty Ltd software license agreement for pending high volume, low-ARPU contracts and increased the minimum annual services payment to $1M.
• Successfully completed a Cloud Gaming trial in North America for a major Korean smart TV manufacturer as a precursor to a global roll-out.
• Completed managed services contracts with a number of enterprise customers in Western Australia, NSW and Victoria totalling more than $500K.
• Continued to progress a number of major software licensing deals in our extensive and growing sales pipeline.
.

 

[Dona Ferentes]

here's hoping it is resilient. Up a bit ... 4.1c

Cloud-Centric Networks​

Highlights
• Activeport’s NEO connects enterprise customers from the Edge to the Cloud via a self-service software defined network portal, eliminating the complexity and cost of building network services.
• NEO offers a significant new revenue opportunity from its network of connectivity hubs in Australia and New Zealand capital cities.
• NEO showcases the features of Activeport’s enterprise orchestration software that telcos globally are purchasing to power their own B2B portals.
• NEO is built for enterprise customers that require a sophisticated self-service management tool-kit for high-performance, reliable and secure cloud connectivity.
• NEO nodes will be progressively deployed in key international locations, starting in Australia and New Zealand then expanding Singapore for the Southeast Asian market and beyond.
• Priced to achieve $18K annual revenue per user and 75% gross profit for in-house services and $60K annual ARPU at 45% average gross profit when revenue from third-party connected products is included.

 

[Dona Ferentes]

I have no real understanding of what a Network Ecosystem Orchestration (NEO) solution is, but Activeport has just released it under the Global Edge brand.
Global Edge is Activeport’s SaaS platform for managed networks and this release is the first of the global B2B deployments, starting in Australia and New Zealand.

Highlights
• Activeport’s NEO connects enterprise customers from the Edge to the Cloud via a self-service software defined network portal, eliminating the complexity and cost of building network services.
• NEO offers a significant new revenue opportunity from its network of connectivity hubs in Australia and New Zealand capital cities.
• NEO showcases the features of Activeport’s enterprise orchestration software that telcos globally are purchasing to power their own B2B portals.
• NEO is built for enterprise customers that require a sophisticated self-service management tool-kit for high-performance, reliable and secure cloud connectivity.
• NEO nodes will be progressively deployed in key international locations, starting in Australia and New Zealand then expanding Singapore for the Southeast Asian market and beyond.
• Priced to achieve $18K annual revenue per user and 75% gross profit for in-house services and $60K annual ARPU at 45% average gross profit when revenue from third-party connected products is included.
.
...I made a bit from Megaport, and these guys have got Port in their name. Also, AR9 mentions orchestration. Must be some newfangled thing-o. But efforts are mainly A+NZ , is there any uncontesred space they can move into internationally?

Quarterly is out, shares have lifted of late from 4c to 6.9c today.

 

[Dona Ferentes]

raised a bit of money at 5.0c, some oppies at 10c, and the price drops enthusiastically 30 per cent to 4.9c.
.
Highlights
• Enthusiastic support from new and existing investors will deliver working capital of $1.9M, seeing the Company well-funded heading into its next growth phase.
• Funds will accelerate growth across the three channels to market of network orchestration, software as a service and GPU streaming.
• With four new telco projects starting in 1H24 and six more under consideration for H2, this additional working capital will enable expansion of the technical team internationally to monetise more opportunities faster.
• Activeport’s focus in FY25 is to grow the recurring revenue base of its highly profitable software products and this round will assist in building that revenue stream.

 

[Dona Ferentes]

one way to show weakness... down 50 per cent .

This fundraising is a major step in the value creation journey for the Company and the Directors look forward to continued shareholder support as Activeport advances the business to the next level and delivers value for shareholders. The funds raised will be used to strengthen the balance sheet and advance new software projects to deliver strong recurring revenue growth and consistent positive free cash flow.

Highlights:
• 3 for 4 Renounceable Rights Issue to raise up to $5.3 million
• Attractively priced at 2 cents per share
• Discount of 50% to the September 30-day VWAP
• With every 3 New Shares, shareholders receive 1 free attaching New Option
• New Options will have Exercise Price of 10 cents, term of 3 years
• Shareholders can trade their rights and apply for additional shares and options
• Rights to start trading from December 2024
• Funds to be used to strengthen the balance sheet and for working capital to accelerate growth.

The Rights Issue offer price represents a discount of 50% to the Company’s 30-day VWAP of $0.04 in September 2024. The Rights Issue is open to all eligible shareholders who have a registered address within Australia, New Zealand, Hong Kong and Singapore and who hold shares on the Record Date. The Rights Issue will close on Friday, 01 November 2024 (unless extended), and eligible shareholders can apply for shortfall in excess of their entitlement. Shareholders can also trade their rights from Monday, 14 October 2024.

Funds raised will be used to enable the Company to:
• Hire technical and business development staff to execute on significant new projects;
• Grow recurring revenue from enterprise software licenses;
• Expand its SaaS business globally; and
• Repay existing loans and creditors.

 

[Dona Ferentes]

someone believes

.

Activeport Rights Issue to Raise $5.3M Successfully Closed, Positioning the Business for Accelerated Growth.​

.
Highlights
• Activeport received commitments totalling $6.1M including a placement of $2M to new Institutional Investor MWP Partners.
• Activeport is pleased to announce MWP Partners as a new substantial shareholder.
• Funds raised will strengthen Activeport’s balance sheet and provide working capital for revenue growth.

Activeport Group Ltd (ASX: ATV) is pleased to announce it has received over $4.1M from its recent renounceable rights issue plus a binding commitment from MWP Partners Limited, a Hong Based fund, and its associates for an additional $2.0M, raising over $6.1M. The Company has decided to close the shortfall offer relating to the Rights Issue.

To accommodate the substantial contribution from MWP Partners, the Company offered a Placement to MWP Partners of $2.0m in lieu of participating in the Rights Issue shortfall offer. The issue price for the Placement is1.624 cents which represents at a 4% discount to 30-day VWAP. Unlike the Rights Issue, no options will be issued under the Placement.