Post by
retiredcf on Dec 09, 2021 11:14am
An Earlier Assessment
DTOL went public Nov 3 at $17 and is more or less the same price now. Desire2Learn is a SaaS company for online education, based in Kitchener, Ontario. The IPO was expected more than 15 years ago. It has a long history and a good business, with good clients and growth. It has a big client base and the pandemic was very good for business. The revenue run rate is about $140M, with nearly 90% visibility to subscription revenue into the next twelve months from long-term contracts. Majority of customers enter into contracts with D2L that have a term of three to five years with no right of termination for convenience. For fiscal 2021, D2L's revenues grew over 15% to $126 million, with a new ARR (annual recurring revenue) bookings growth of 62%. The EBITDA margin achieved in Fiscal 2021 stood at 4.8%, and management expects further investments and opportunities to aid in improvement. With sticky revenue and a fragmented industry, we would like to see how D2L improves margins and market share. The IPO reception has been fairly muted, but we think it is a decent company with some potential.
Provided by the team at 5iResearch on 13 Nov. As noted, they will be pleased to see the improvement in margins. GLTA