beaconsmind reported a strong set of FY 2021/22 figures showing a dynamic top-line development, mainly driven by major customer wins like BFL in the United Arab Emirates, the fitness chain UFC Gym and the Czech fashion chain Prodes. Here are the key takeaways from the release:

• FY 2021/22 sales strongly increased by 250% yoy to CHF 2.0m, significantly exceeding our estimate of CHF 1.2m. Importantly, annual recurring revenues of the beaconsmind Suite software made up c. 90% of total sales, allowing for strong visibility going forward.
• FY 2021/22 EBITDA significantly improved from CHF -4.5m to CHF -2.2m. The improvement was mainly driven by a reduced personnel cost ratio as well as one-offs in connected with share-based payments in the previous year (CHF 1.9m).

Please note, that the company will henceforth align its fiscal year with the calendar year (prior: JUL-JUN). Moreover, the reporting currency will be changed from CHF to EUR. beaconsmind will report its FY 2022 report in June.

M&A engine running well. beaconsmind signed two further acquisitions, after acquiring WiFi specialist Frederix in November 2022. In February, the company bought 100% of Netopsie, a developer and provider of in-house DSL, TV, and WiFi solutions. The total purchase price of EUR 0.5m consists of a cash payment of EUR 0.2m upon completion of the transaction and a payment of EUR 0.3m over a period of 5 years.

More importantly, beaconsmind also acquired 100% of  the market leading WiFi hotspot provider Socialwave for  € 10m. This is financed through a combination of low-coupon debt (€ 5m), cash (€ 2.5m), as well as 350k new beaconsmind shares (€ 2.5m). In order to fund the cash part of the acquisitions, beaconsmind also resolved two capital increases, raising CHF 3.41m.  

Thanks to the acquisitions, beaconsmind’s revenue run rate increases from € 5.8m to € 10.9m. We will provide more detail on the transactions in the following pages.

Based on the compelling outlook and the strong FY results, we reiterate BUY with a new PT of € 27.00 (old: € 30.00) based on DCF. -continued-