Top global investment firm conducts research on Dreamscape Networks Limited
March 9, 2017 – Perth Australia – Dreamscape Networks Limited (ASX: DN8) has announced that the Australian capital markets division of Canaccord Genuity Group, Canaccord Genuity (Australia) Ltd., has initiated research on DN8.
Canaccord Genuity Group is a leading independent global investment bank. The full-service investment banking company offers financial services and specialises in management of wealth and brokerage in capital markets.
During the Initial Public Offering (IPO) of Dreamscape Networks Limited, the appointed Lead Manager and Underwriter was Canaccord. The Offer ended as notably oversubscribed on December 2016, raising $25 million for Dreamscape.
Dreamscape as a success story
The report profiles the company as a provider of domain name, hosting and online services and solutions. Crucial factors outlined include customer add-ons and upsells, which Dreamscape benefits from. This is a direct result of the company’s investment in a custom technical support, customer care and sales centre in the Philippines, with gross profit margins at 60.3%.
The subscription based revenue of the company contributes significantly to its strong business model foundation with stable revenues. Renewal bookings are up by 54% in FY16. The report also described Dreamscape as a success story that achieved growth with no external capital since its early beginnings in 2000.
Furthermore, as a strong cash generative business, Dreamscape is well positioned with the ability to invest. Anticipated developments include expansion of the company’s Solutions host of products while delving more into the Asian region through acquisitions and organic strategies.
Strong business model
Strong unit economics pave the way as an important driver of the Company’s business model. Meanwhile, compared to its biggest competitor GoDaddy, Dreamscape’s estimated lifetime portfolio value of $148 million is described as favourable.
Canaccord Genuity goes on to initiate on DN8 with a BUY recommendation. Furthermore, the research sets the price target at A$0.35ps, an amount arrived at through a valuation methodology.
The research provides the company with an outlook for the future, in light of its public listing and goals for further international expansion in up-and-coming markets.
View the full research here. Find more of the latest updates from the company at https://www.dreamscapenetworks.com/asx-announcements/.