Reported Earnings • Mar 10
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: US$0.09 (down from US$0.19 in FY 2021). Revenue: US$98.9m (up 41% from FY 2021). Net income: US$3.67m (down 50% from FY 2021). Profit margin: 3.7% (down from 10% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 140%. Revenue is forecast to grow 25% p.a. on average during the next 2 years, compared to a 14% growth forecast for the Software industry in Canada. Announcement • Feb 16
Nellore Continues to Acquire Shares of Magnet Forensics Nellore Capital Management LLC announced that it acquired an aggregate of 67,625 SV Shares on the open market through the facilities of the Toronto Stock Exchange. Nellore Capital stated that onn February 9, 2023, it publicly announced its intention to vote against the proposed transaction with Morpheus Purchaser Inc. (the Purchaser), a newly created corporation controlled by Thoma Bravo, pursuant to which the Purchaser would acquire all of the outstanding shares of Magnet by way of a shareholder approved and court approved plan of arrangement (the Arrangement). Announcement • Feb 10
Nellore Capital Opposes Thoma Bravo's Proposed Acquisition of Magnet Forensics On February 9, 2023, Nellore Capital Management LLC announced that the proposed transaction, which is a structurally unfair, opportunistic and undervalued deal, can be blocked by a simple majority of unconflicted Subordinate Voting Shareholders. Nellore Capital stated that the Company' compounding opportunity ahead is worth significantly more than the CAD$44.25 being offered per Subordinate Voting Share and Nellore Capital conservatively estimates current intrinsic value to be CAD$60 – 70 per share and growing annually by CAD$13 – 20. Nellore Capital estimates that the Company will earn USD$50 – 60mm FCF in 2024. Nellore Capital expressed that Thoma Bravo is acquiring the business for just 20 – 25x FCF, at a highly opportunistic time as the company's margins are just recovering from a recent investment cycle. In addition, Nellore Capital stated that the Company’s' senior management and board chair must believe the long-term value potential is far greater than CAD$44.25, since they have negotiated only for themselves the right to maintain their interests, an opportunity being denied to the public holders of Subordinate Voting Shares. Recent Insider Transactions • Dec 11
Insider recently sold CA$208k worth of stock On the 7th of December, Danny Bolduc sold around 5k shares on-market at roughly CA$41.50 per share. This transaction amounted to 9.7% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$62m more than they bought in the last 12 months. Major Estimate Revision • Nov 16
Consensus EPS estimates increase by 54% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$94.0m to US$96.9m. EPS estimate increased from US$0.03 to US$0.04 per share. Net income forecast to grow 3,034% next year vs 6.5% decline forecast for Software industry in Canada. Consensus price target up from CA$37.14 to CA$39.72. Share price rose 29% to CA$33.07 over the past week. Reported Earnings • Nov 10
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: US$0.03 (down from US$0.054 in 3Q 2021). Revenue: US$25.0m (up 41% from 3Q 2021). Net income: US$1.37m (down 37% from 3Q 2021). Profit margin: 5.5% (down from 12% in 3Q 2021). Revenue exceeded analyst estimates by 4.4%. Earnings per share (EPS) also surpassed analyst estimates by 9.1%. Revenue is forecast to grow 23% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Software industry in Canada. Announcement • Nov 10
Magnet Forensics Inc. Provides Earnings Guidance for the Year Ending December 31, 2022 Magnet Forensics Inc. provided earnings guidance for the year ending December 31, 2022. For the year, the company expects revenues of $96.0 million to $98.0 million, representing 37% to 39% growth over Fiscal 2021, with the contribution of growth across the four periods distributed similar to prior years, with Quarter 3 and Quarter 4 representing a greater contribution. Announcement • Oct 27
Magnet Forensics Inc. to Report Q3, 2022 Results on Nov 09, 2022 Magnet Forensics Inc. announced that they will report Q3, 2022 results Pre-Market on Nov 09, 2022 Recent Insider Transactions Derivative • Aug 18
Chief Revenue Officer exercised options to buy CA$285k worth of stock. On the 11th of August, Craig McLennan exercised 22.84k options to receive shares at no cost, then sold around 11.69k of them at CA$23.50 each and kept the remainder. As of today, Craig currently holds no shares directly. Company insiders have collectively sold CA$65m more than they bought, via options and on-market transactions in the last 12 months. Major Estimate Revision • Aug 17
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 revenue forecast increased from US$92.7m to US$94.2m. EPS estimate fell from US$0.12 to US$0.04 per share. Net income forecast to grow 480% next year vs 5.3% decline forecast for Software industry in Canada. Consensus price target up from CA$35.91 to CA$36.65. Share price rose 3.4% to CA$24.75 over the past week. Reported Earnings • Aug 11
Second quarter 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2022 results: US$0.02 loss per share (down from US$0.042 profit in 2Q 2021). Revenue: US$23.1m (up 41% from 2Q 2021). Net loss: US$1.02m (down 164% from profit in 2Q 2021). Revenue exceeded analyst estimates by 6.9%. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is forecast to grow 29%, compared to a 19% growth forecast for the industry in Canada. Announcement • Aug 11
Magnet Forensics Inc. Provides Earnings Guidance for the Year Ending December 31, 2022 Magnet Forensics Inc. provided earnings guidance for the year ending December 31, 2022. For the period, Revenues to be in the range of $92.5 million to $94.5 million, representing 32% to 34% growth over Fiscal 2021. Announcement • Jul 28
Magnet Forensics Inc. to Report Q2, 2022 Results on Aug 10, 2022 Magnet Forensics Inc. announced that they will report Q2, 2022 results Pre-Market on Aug 10, 2022 Major Estimate Revision • May 12
Consensus forecasts updated The consensus outlook for 2022 has been updated. 2022 EPS estimate fell from US$0.17 to US$0.12 per share. Revenue forecast steady at US$92.5m. Net income forecast to grow 83% next year vs 18% growth forecast for Software industry in Canada. Consensus price target down from CA$41.02 to CA$37.81. Share price fell 23% to CA$18.93 over the past week. Reported Earnings • May 06
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: US$0.02 loss per share (down from US$0.083 profit in 1Q 2021). Revenue: US$19.8m (up 35% from 1Q 2021). Net loss: US$894.0k (down 132% from profit in 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates. Over the next year, revenue is forecast to grow 31%, compared to a 25% growth forecast for the industry in Canada. Announcement • May 06
Magnet Forensics Inc. Provides Revenue Guidance for the Year Ending December 31, 2022 Magnet Forensics Inc. provided revenue guidance for the year ending December 31, 2022. For the year, the company expects revenues of $91.5 million to $93.5 million, representing 30% - 33% growth over Fiscal 2021, with the contribution of growth across the four periods distributed similar to prior years, with second quarter and third quarter representing a greater contribution. Announcement • Apr 22
Magnet Forensics Inc. to Report Q1, 2022 Results on May 05, 2022 Magnet Forensics Inc. announced that they will report Q1, 2022 results Pre-Market on May 05, 2022 Announcement • Apr 16
Magnet Forensics Previews New and Upcoming Product Updates to Magnet Digital Investigation Suite at Magnet Summit 2022 Magnet Forensics previewed a host of new and upcoming product updates for the Magnet Digital Investigation Suite at its Magnet Summit 2022 conference. Magnet Summit 2022 conference, which is taking place in-person between April 12 and April 14 and virtually April 20 to April 28, 2022. Over three days and in front of a group of customers and global digital forensics experts, Magnet Forensics highlighted its recent innovations to Magnet AUTOMATE and Magnet ATLAS and showcased a major new release of Magnet REVIEW. Together, these three solutions make up the Magnet Digital Investigation Suite, which enables public safety organizations and enterprises to streamline their workflows, increase collaboration and accelerate their digital investigations with automation and analytics. Both police agencies and enterprises are struggling with the growth in volume and complexity in digital evidence and the Magnet Digital Investigation Suite is designed to directly address challenges encountered during each step of an investigation. Investigations are stalled during evidence processing because the number of devices and amount of data investigators are handling outweighs their ability to rapidly deliver results. Magnet AUTOMATE provides a solution by automating evidence processing and getting results in the hands of investigators in a timely fashion. Agencies also lose efficiency throughout evidence review and analysis due to the challenges digital forensics professionals and investigators encounter during their collaboration and in storing evidence. Magnet REVIEW enables investigators to remotely review digital evidence and to share it with stakeholders inside and outside their organizations in a secure and auditable fashion. Magnet ATLAS, meanwhile, breaks down silos and permits agencies to manage data related to their digital investigations from one centralized and secure location. Magnet Forensics recently delivered new versions of Magnet AUTOMATE and Magnet ATLAS and will imminently release a new version of Magnet REVIEW. With these updates, users of the Magnet Digital Investigation Suite will be able to: View key source device details in a convenient, at-a-glance format with the new Magnet REVIEW Device Dashboard; Leverage customizable multi-artifact views in Magnet REVIEW to highlight important evidence items for investigators so they can complete their reviews even more effectively; Automatically process data from several new sources, including Magnet DVR Examiner, warrant returns and other cloud data packages with Magnet AUTOMATE; Add further automation and control to their Magnet AUTOMATE workflows with device platform autodetection and job queue prioritization; Monitor the progression of casework through the assignment, tracking and completion of tasks with the new Magnet ATLAS Task Manager; and Easily add file attachments to items in Magnet ATLAS, both from their internal systems as well as Magnet AXIOM or Magnet AUTOMATE. Announcement • Apr 13
Magnet Forensics Launches Magnet Ignite to Help Enterprises Better Identify and Assess Cyber Threats with Rapid, Remote Triage Magnet Forensics announced the launch of Magnet IGNITE, a cloud-based triage solution enabling businesses to perform rapid, remote scans of target endpoints for malicious and insider activity. Magnet IGNITE can triage multiple remote endpoints at once to provide digital forensic and incident response teams with an early case assessment that will guide the next steps of their investigations into cyber threats. By quickly gathering intelligence and assessing a potential ransomware attack or an insider's exfiltration of intellectual property, Magnet IGNITE helps enterprises understand where and when they need to deploy full forensic analyses. Cybercriminals may only require minutes to successfully carry out a data breach, but security teams require an average of 69 days to contain them, according to IBM and the Ponemon Institute. The longer they take to identify and respond to a data breach, the greater the damage will be. Full digital forensic analyses are a staple of post-incident strategies, but they can also take dozens or even hundreds of hours to complete on multiple endpoints. Security teams cannot afford to waste time and resources by running full forensic analyses on multiple endpoints that haven't been impacted by an attack. Small and medium sized businesses, meanwhile, often do not have internal digital forensics capabilities or the resources to hire a third party to investigate every potential threat. Both require the means to quickly verify malicious activity and to narrow the focus of their investigations. Magnet IGNITE is the first solution to graduate from the Magnet Idea Lab, an incubator made up of a sizeable community of beta testers that help the company develop the next generation of digital forensics technology. Since March 2021, 263 users tested Magnet IGNITE. The group included professional service providers and Fortune 500 companies in the telecommunications, healthcare and technology sectors. With Magnet IGNITE, enterprises can: Perform rapid and remote triaging of endpoints from anywhere, at any time with the cloud; Scan internet history, cloud storage, USB connection history, installed apps, memory and other volatile data and recently accessed files and folders for malicious or insider activity; Accelerate response to cyber attacks by triaging multiple remote endpoints at once; Share findings with internal and external stakeholders using easy-to-use built-in web review tool; Export findings to Magnet AXIOM Cyber to begin full forensic analysis of endpoints. Announcement • Apr 02
Magnet Forensics Inc., Annual General Meeting, Jun 15, 2022 Magnet Forensics Inc., Annual General Meeting, Jun 15, 2022. Recent Insider Transactions • Mar 17
Insider recently sold CA$280k worth of stock On the 11th of March, Danny Bolduc sold around 10k shares on-market at roughly CA$28.00 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$64m more than they bought in the last 12 months. Reported Earnings • Mar 11
Full year 2021 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2021 results: EPS: US$0.19 (down from US$0.98 in FY 2020). Revenue: US$70.3m (up 37% from FY 2020). Net income: US$7.34m (down 31% from FY 2020). Profit margin: 10% (down from 21% in FY 2020). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.5%. Earnings per share (EPS) missed analyst estimates by 3.6%. Over the next year, revenue is forecast to grow 25%, compared to a 30% growth forecast for the industry in Canada. Buying Opportunity • Mar 02
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 21%. The fair value is estimated to be US$33.11, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 27% per annum over the last 3 years. Earnings per share has grown by 64% per annum over the last 3 years. Announcement • Feb 25
Magnet Forensics Inc. to Report Q4, 2021 Results on Mar 10, 2022 Magnet Forensics Inc. announced that they will report Q4, 2021 results Pre-Market on Mar 10, 2022 Buying Opportunity • Feb 15
Now 20% undervalued after recent price drop Over the last 90 days, the stock is down 24%. The fair value is estimated to be US$33.20, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 27% per annum over the last 3 years. Earnings per share has grown by 64% per annum over the last 3 years. Announcement • Feb 01
Magnet Forensics Introduces Magnet Automate Enterprise Magnet Forensics Inc. announced the release of Magnet AUTOMATE Enterprise, a solution that is transforming how organizations respond to security events by automating and accelerating cybersecurity investigations. Leveraging automation technology, Magnet AUTOMATE Enterprise synchronizes detection and incident response solutions to immediately trigger investigations, automates basic and repetitive tasks and enables forensic analysts to simultaneously recover and process evidence from multiple endpoints. This approach reduces the time enterprises need to respond to and recover from cybersecurity incidents. It takes only minutes, not hours, for cybercriminals to penetrate the defenses of enterprises. According to Microsoft, some ransomware attacks are completed in under 45 minutes. Once access is gained, ransomware requires only three seconds to begin encryption. The response time to security incidents, however, is often slowed because forensic analysts need to manually launch each step of an investigation. Hours are lost as investigations stall between shifts, in evenings, on weekends and during holidays. Every additional second required to respond to a cybersecurity incident not only gives cybercriminals the opportunity to potentially steal more data, but it also increases the downtime for enterprises, which could cause monetary and reputational damages. Buying Opportunity • Jan 25
Now 21% undervalued after recent price drop Over the last 90 days, the stock is down 35%. The fair value is estimated to be US$32.10, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 27% per annum over the last 3 years. Earnings per share has grown by 64% per annum over the last 3 years. Valuation Update With 7 Day Price Move • Jan 11
Investor sentiment deteriorated over the past week After last week's 17% share price decline to CA$27.37, the stock trades at a forward P/E ratio of 119x. Average forward P/E is 69x in the Software industry in Canada. Simply Wall St's valuation model estimates the intrinsic value at CA$33.64 per share. Recent Insider Transactions • Dec 18
CEO & Director recently sold CA$27m worth of stock On the 14th of December, Adam Belsher sold around 900k shares on-market at roughly CA$30.30 per share. This was the largest sale by an insider in the last 3 months. This was Adam's only on-market trade for the last 12 months. Recent Insider Transactions • Dec 18
CEO & Director recently sold CA$27m worth of stock On the 14th of December, Adam Belsher sold around 900k shares on-market at roughly CA$30.30 per share. This was the largest sale by an insider in the last 3 months. This was Adam's only on-market trade for the last 12 months. Announcement • Dec 15
Magnet Forensics Inc. has completed a Follow-on Equity Offering in the amount of CAD 74.441464 million. Magnet Forensics Inc. has completed a Follow-on Equity Offering in the amount of CAD 74.441464 million.
Security Name: Subordinate Voting Shares
Security Type: Common Stock
Securities Offered: 2,456,814
Price\Range: CAD 30.3
Discount Per Security: CAD 1.212 Recent Insider Transactions • Dec 12
Vice President of Sales – Americas recently sold CA$585k worth of stock On the 6th of December, Matt Brooks sold around 19k shares on-market at roughly CA$31.18 per share. In the last 3 months, there was an even bigger sale from another insider worth CA$625k. Insiders have been net sellers, collectively disposing of CA$2.3m more than they bought in the last 12 months. Recent Insider Transactions • Dec 03
Insider recently sold CA$102k worth of stock On the 29th of November, Chris Warden sold around 3k shares on-market at roughly CA$34.10 per share. In the last 3 months, there was an even bigger sale from another insider worth CA$625k. Insiders have been net sellers, collectively disposing of CA$1.7m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Nov 17
Vice President of Sales – Americas exercised options and sold CA$1.8m worth of stock On the 11th of November, Matt Brooks exercised 60.94k options at around CA$1.57, then sold 52k of the shares acquired at an average of CA$36.70 per share and kept the remainder. As of today, Matt currently holds no shares directly. Company insiders have collectively sold CA$2.8m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Nov 17
Vice President of Sales – Asia Pacific recently sold CA$625k worth of stock On the 10th of November, Danny Bolduc sold around 18k shares on-market at roughly CA$35.74 per share. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$981k more than they bought in the last 12 months. Announcement • Sep 14
Magnet Forensics Inc. (TSX:MAGT) acquired DME Forensics Inc. $9 million. Magnet Forensics Inc. (TSX:MAGT) acquired DME Forensics Inc. for $9 million on September 13, 2021. Under the terms of the agreement, Magnet Forensics will pay upfront cash consideration of $6.75 million plus a $2.25 million earn out over two years based on the achievement of certain integration-focused targets. Magnet Forensics will retain all of DME’s current employees, including its current management team.
Magnet Forensics Inc. (TSX:MAGT) completed the acquisition of DME Forensics Inc. on September 13, 2021. Valuation Update With 7 Day Price Move • Sep 13
Investor sentiment deteriorated over the past week After last week's 19% share price decline to CA$45.99, the stock trades at a forward P/E ratio of 225x. Average forward P/E is 88x in the Software industry in Canada. Simply Wall St's valuation model estimates the intrinsic value at CA$18.40 per share. Valuation Update With 7 Day Price Move • Aug 17
Investor sentiment improved over the past week After last week's 23% share price gain to US$43.81, the stock trades at a forward P/E ratio of 215x. Average forward P/E is 83x in the Software industry in Canada. Simply Wall St's valuation model estimates the intrinsic value at CA$18.37 per share. Announcement • Aug 12
Magnet Forensics Inc. Provides Earnings Guidance for the Full Year Ending December 31, 2021 Magnet Forensics Inc. provided earnings guidance for the full year ending December 31, 2021. For the year, the company expects revenues of $65.5 million to $67.5 million, representing 28% to 32% growth over Fiscal 2020. Valuation Update With 7 Day Price Move • Jul 30
Investor sentiment improved over the past week After last week's 15% share price gain to US$31.37, the stock trades at a forward P/E ratio of 165x. Average forward P/E is 87x in the Software industry in Canada. Simply Wall St's valuation model estimates the intrinsic value at CA$16.33 per share. Announcement • May 14
Magnet Forensics Inc. Provides Earnings Guidance for the Year Ending December 31, 2021 Magnet Forensics Inc. provided earnings guidance for the year ending December 31, 2021. For the year, the company expects revenues of $64.5 - $66.5 million, representing 26%-30% growth over fiscal 2020. Recent Insider Transactions • May 10
Independent Director recently bought CA$100k worth of stock On the 3rd of May, Carol Leaman bought around 6k shares on-market at roughly CA$17.00 per share. This was the largest purchase by an insider in the last 3 months. This was the only on-market transaction from insiders over the last 12 months. Announcement • May 04
Magnet Forensics Inc. has completed an IPO in the amount of CAD 100.13 million. Magnet Forensics Inc. has completed an IPO in the amount of CAD 100.13 million.
Security Name: Subordinate Voting Shares
Security Type: Common Stock
Securities Offered: 5,890,000
Price\Range: CAD 17
Discount Per Security: CAD 1.02
Transaction Features: Regulation S; Rule 144A; Sponsor Backed Offering