DCM Announces DAM win for Large Canadian Technology ProviderDCM announced this morning that it will be begin deploying ASMBL an end-to-end solution for marketing workflow and asset management, to one of Canada’s preeminent technology retailers.
This is a great tech-win and signal that the company is executing on its strategic shift from print to digital. Since CEO Richard Kellam has come in, there has been a strong focus on building a better business, and today is the first announcement that shows the company is being rewarded for it. As the company continues to close these types of deals, it would be expected that the revenue profile of the company will begin to change and hopefully reflected in the capital markets multiple.
Mediavalet (TSX: MVP), a comparable Canadian digital asset management provider, announced in late October a 90k annual win and the stock did fairly well. Since DCM’s can reach into their large contracts that are in the millions annually, it’s hard not to get excited about how well DCM can do if it can start to convert even a small percentage of its clients to its new ASMBL platform.
For reference, Mediavalet generated just under $10M in Rev. last year, whereas Data generated $260M with $3.4M of that in ASMBL, DCM’s DAM platform. As highlighted in their investor deck comps slide, DAM comps. trade at an average multiple of 8x EV/REV so, hopefully this Is just the beginning of tech/DAM wins.
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