Thread by @mavix_leon

Livechat Software $LVC $LVCP 💬
@LiveChat

▫️SaaS company under the radar
▫️unbelievable profit margins
▫️Revenue growth 45 %
▫️Rule of 40 > 90
▫️31.000 customers in over 150 countries
▫️management with skin in the game
▫️still cheap

🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥🔥

A Thread 👇🏻

The company:

▫️based in Poland 🇵🇱
▫️Founder-operator management with ~ 41% of shares
▫️Market cap ~ $800m USD
▫️went public on Warsaw stock exchange in 2014
▫️25+ customers from Fortune 500 list: Unilever, McDonalds, Adobe, Samsung, Paypal, Sony, Mercedes...

Next Products ➡️

Live Chat 💬

▫️a tool for quick contact between clients and the company
▫️using chat application
▫️embedded on the companies website
▫️for customer service or online sales
▫️companies flagship product

ChatBot 🤖

▫️a product which allows the creation of conversational chatbots
▫️to handle various business scenarios
▫️integrated with LiveChat but also other tools like Facebook Messenger
▫️growing exponentially off a small base

Knowledge Base 💭

▫️platform that allows companies to create their own knowledge bases
▫️which can accessed by employees and clients
▫️to organize and quickly retrieve information that require more explanation

Help Desk 🆘

▫️ticketing system
▫️helps to solve all customer cases in an easy way

So LiveChat Software offers different products for text based business communication tools. And in this market there is a well known competitor with @Zendesk

▫️Zendesk is the market leader for live chat products
▫️But @LiveChat is growing faster than Zendesk and is capturing market share
▫️In the last quarter LiveChat grew with 45% in revenues while the livechat segment of zendesk decreased
⬇️

▫️ Zendesk is a good company but also highly valued right now
▫️While the EV/Sales of Zendesk and Livechat is nearly the same, LiveChat is already highly profitable and Zendesk reports losses

So let‘s take a look at the margins and financials of LiveChat 💰

⬇️

Margins 🤯

▫️Gross Profit 82.8 %
▫️EBITDA 64.1 %
▫️EBIT 58.6 %
▫️Net Income 54.8 %*

*incl. tax benefits; without these benefits the net income margin would be 47% 🚀

Financial Results H1 20/21

▫️Revenue +35.6 %, in Q3 20/21 even 45 % ➡️ growth is accelerating due to Covid
▫️EBITDA +31.8 %
▫️Net Profit +49.4 % *

*incl. tax benefits; without it ~30%

Valuation (TTM) 💎

▫️EV/Sales 17
▫️PE 28
▫️PEG < 1
▫️ Rule of 40 > 90

💎💎💎
You get a highly profitable company for 28x net earnings a clean balance sheet (no debt), growing with 45 % in top line and over 30 % bottom line, over 60 % operating margin and 120 % ROC
💎💎💎

@GetBenchmarkCo i recognized you have this great company also on your list. I hope you guys are also taking a look at this under-the-radar stock @LiveChat_IR. It deserves more attention 🤩

For further information here is a great SA article

LiveChat Software: Overlooked European SaaS Story With A Rare Combination Of Growth And Profitability seekingalpha.com/article/437111…

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