CKT Checkit

Checkit (CKT): SaaS software for the deskless workforce

Edison Investment Research Limited
Checkit (CKT): SaaS software for the deskless workforce

20-Dec-2021 / 07:00 GMT/BST

 

London, UK, 20 December 2021

 

Checkit (CKT): SaaS software for the deskless workforce

Checkit's SaaS platform is designed to bring visibility to the operations of businesses with dispersed, deskless workforces. Checkit is focused on driving adoption of its software and over the last year has invested to support its shift to a pure SaaS business model. Net proceeds of £20m from the recent placing will be used to accelerate growth plans, with the US a particular focus. In our view, consistent growth in recurring revenues and an expanding customer base should help to reduce the valuation discount to software peers.

 

On an EV/sales multiple of 1.6x for FY22e and 1.9x for FY23e, Checkit trades at a significant discount to the UK software sector (5.4x current year sales, 4.2x next year sales) and US SaaS peers (16.0x CY, 12.3x NY sales). If Checkit were to trade on the UK average for FY23e, it would be worth 70p per share. Key triggers to help Checkit attract a multiple more in line with SaaS peers include evidence that customers are signing up to use its software, existing customers are expanding their usage and non-recurring revenues are being converted to subscription services. 


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Reports on Checkit

Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - Signposting the path to profitability

In a tough trading environment, Checkit managed to grow FY24 revenue by 17% and reduce EBITDA losses by nearly half. The company has had a positive start to FY25 with new contract wins and the launch of a new module. Focus on growth from its existing customer base combined with strict cost control is helping Checkit to make steady progress towards its target of positive EBITDA and cash generation in FY27.

04/25/24 April 25, 2024 1 EN
Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - New product launch and contract wins

Checkit has won contracts with two customers worth at least £417k over the three-year lives of the contracts, confirming its ability to upsell to its existing customer base and supporting our forecasts. Having trialled the new technology with multiple customers, Checkit has launched its Asset Intelligence module, which uses advanced analytics and machine learning to enhance customer sustainability, reduce costs and increase revenue.

04/15/24 April 15, 2024 1 EN
Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - FY24 revenue and ARR in line, EBITDA ahead

Checkit’s FY24 trading update confirmed that revenue and year-end annual recurring revenue (ARR) were in line with our forecasts, up 17% and 16% respectively. Better cost control resulted in a smaller EBITDA loss than expected, highlighting good progress towards reaching profitability. Product development is focused on expanding into new verticals and enhancing the platform with tools to turn data into actionable insights.

02/15/24 February 15, 2024 1 EN
Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - Making good progress towards profitability

Checkit reported annual recurring revenue (ARR) growth of 24% y-o-y in H124, with more than half of the growth from upsells and cross-sells to its existing customer base. Revenue was 19% higher y-o-y and EBITDA losses nearly halved y-o-y. We have upgraded our FY24 EBITDA forecast on better gross margins and operating efficiencies. Recent contract wins provide upsell potential and the recent John Lewis contract renewal highlights the stickiness of the technology.

09/14/23 September 14, 2023 1 EN
Richard Williamson
  • Richard Williamson
CKT CHECKIT

Checkit - Trading on track in tough environment

Checkit made good progress in H124, growing annual recurring revenue (ARR) by 24% y-o-y and revenue by 19% y-o-y. Net revenue retention of 113% highlights the company’s ability to cross-sell and upsell, and the recent contract renewal with John Lewis and master service agreement with Compass provide further expansion opportunities. We maintain our forecasts.

08/10/23 August 10, 2023 1 EN

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