Datawatch’s Future Value

Summary

*)The turnaround for DWCH started quarter 4 2015. Near an average of 18% year over year quarterly revenue growth during the past two years. The accelerating growth was after costly strategic mistakes from 2013 to the end of 2015.

*)Intrinsic value is improving from the increasing percentage of recurring revenue now at 60% expected to grow to +70% next year.

*)The quarter 2 2018 acquisition of Angoss completes Datawatch’s data analysis offering. This addition presents Datawatch with cross/up-sell opportunities for larger deals. Datawatch now offers data prep, discovery, visualization and predictive analysis. Data can be at rest or in motion, structured, unstructured or streaming. 

*) Non-GAAP revenue surging 42% versus prior year’s quarter (23% for GAAP revenue). License revenue improved 78% to the prior year’s quarter. Subscription revenue increased 130% versus prior year quarterly results and 17% sequentially. Deferred revenue is 70% greater from the prior year’s quarter and 4% sequentially. Partner contribution grew 40% Q3 2018 versus Q3 2017 without Angoss.

*) The global data wrangling market projects a cumulative annual growth rate of 20%. Market value expected to reach 3.97 billion by 2024. Zion Market Research

*) Panopticon contributed two 6 figure deals in Quarter 3 2018. The market is now recognizing the need to analyze/visualize data in motion, streaming. Not just for investment banking but the internet of things.

*) Average deal size and the number of six-figure deals is growing. 

*) Automatic executive stock sale program every quarter stopped for this most recent quarter. It may be a stretch but no insider selling could indicate outside interest or other material events that prevented automatic sales.