Market's view on Corero Network
Published on April 2024
- Corero has secured $8m in orders from both existing and new customers in the first four months of FY24, with a 17% YoY growth in annualised recurring revenue (ARR) last year. Forecasts predict a +13% growth in revenues to $25.3m for FY24E, with high gross margins at 90% and an expected EBITDA margin reaching double digits.
- Stock watchers are optimistic about the sales strategy and note an uptick in share price, indicating the start of a potential revaluation.
- Positive news flow from Corero including recent contracts and partnerships, such as a significant agreement with TechEnabler in Brazil which has already produced over $1m in bookings. This is expected to penetrate the untapped Latin American market.
- Corero delivered double-digit ARR growth in FY23 and retired all debt, enhancing financial stability. This has led to the retirement of an inter-company loan and a clean balance sheet devoid of foreign exchange fluctuations that historically affected reported margins.
- A recent investor presentation highlighted ongoing progress and a robust investment case for Corero, emphasising its significant market potential and competitive advantages.
- Corero is noted to be debt-free and self-sustaining, with stock watchers expressing confidence in the management’s ability to handle an expanding pipeline of new business effectively.
- Speculations about a potential fund-raising following a U.S. listing were discussed, with opinions divided on the necessity given the company’s current financial health.
- Stock watchers remain engaged and optimistic, frequently discussing stock purchases and the consistent positive developments at Corero.