BWLK Featured in Virtus NewsletterBoardwalktech (TSXV:BWLK) - We recently uncovered Boardwalktech, a fascinating company that uses an integrated stack solution to connect large organizations multiple vendors. A true platform as a service (PaaS), the company engages with large enterprises to offer their solution and eliminate inconsistent data transfers.
- As many of you can relate, when sharing information at work through excel or other ERPs that are used by your company, it is very easy for information to get lost in translation. BWLK uses a time-based digital ledger to rectify this solution – any information that is exchanged or changed is time stamped and traceable to the original. Furthermore, they are able to develop company-specific solutions to help eliminate inefficiencies in the workflow process.
- In July, the company announced that they had signed a $1m contract with a global financial services company, the first time in company history that a six-figure contract was signed. In our view, this is a testament to Boardwalktech’s ability to attract blue-chip clients and believe it bodes extremely well for the future.
- As well, the company reported its FY2019 results – of primary interest is revenue of $4.9m vs. revenue of $4.2m in FY2018 an increase of 13%. While growth year over year is not overwhelming, management is confident that they have hit an inflection point and anticipate revenue ramping up significantly in FY2020. We look to see if this holds true when the company reports Q1 2020 results later this month.
- From a valuation point, the company is trading at an incredible discount at a mere 1.7x EV/Sales based on FY2019 results. While the company does not offer guidance, this multiple would be significantly lower on a forward basis. Relative comps trade at ~3.5x trailing EV/Sales, which would reflect more than double the current share price.
- Potential Catalysts
- Increased market awareness
- Additional large customers
About Boardwalktech Software Corp. Boardwalktech has developed a patented blockchain digital ledger technology platform that is in use today by 26 of the Fortune 500, running over 100 live mission-critical applications worldwide. This enterprise platform allows for multiparty collaboration, provenance, verification and immutable transactions on a trusted, shared and secured private permissioned blockchain cloud service. The Boardwalktech platform allows rapid blockchain application development on any device or user interface, supporting both on/off-chain "smart contract" business logic and full integration with enterprise systems of record.
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