National Bank outperform $50.00 Magnet Forensics reported solid FQ4 results with revenue, adj. EBITDA and the newly-provided F2022
guidance ahead of our and consensus estimates. When it comes to the specific performance metrics -
whether it’s ARR, ARRPA, net dollar retention or cash flow - none of them disappoint. Behind those
strong results is the solid execution for a name with a healthy balance between growth and
profitability. To us, that healthy balance is a valuable attribute in a market where the sentiment is
largely against the early-stage tech names, and in the case of MAGT, while it’s still relatively new,
the risk is clearly lower given its strong top-line growth paired with a healthy EBITDA margin and a
positive cash flow profile to support its growth initiatives – the main reason this name remains as one
of our favourites. Outperform with a price target of C$50.