Building the future of financial software
Bricknode Holding AB (”Bricknode” or the ”Company”) is a leading supplier of SaaS solutions that enable financial companies and startups to design and launch their own digital investment, lending and savings product, or transform existing operations. The Company has developed a platform which is highly scalable and fully cloud based, Bricknode Core, which can be likened as an operating system for all financial applications. Bricknode are estimated to reach a revenue of 26 MSEK in 2023, and based on an applied P/S target multiple of 5.9x, a potential fair value of 13.9 SEK per share is justified in our Base scenario.
- Pick-and-Shovel Business
Bricknode remove barriers for startups and established firms with its cloud-based software and technology solutions by enabling customers to take new propositions to market in a quick and cost-efficient manner, allowing customers to focus on end-consumer value creation. The Company is a part of the global fintech revolution and can be likened with a pick-and-shovel business, where the Company is gaining exposure to the global digitalization of the financial markets, without carrying the traditional company specific risk.
- Bricknode Offers An Extensive Product Portfolio
Bricknode has spent over a decade on developing its financial platform Bricknode Core which is highly scalable, as well as an extensive product portfolio. On top of Bricknode Core, the Company provides additional applications such as Bricknode Broker, Bricknode Lending, Bricknode Marketplace and Investment Manager. The applications offers complete flexibility in product design, regulatory umbrella services and outsourcing for back-office operations. In June 2022, the Company completed a core technology upgrade that enables customers to create new financial services, which is estimated to sustain Bricknode’s growth going forward.
- Sticky Business Model And A Strong Moat
Bricknode’s services, for example Bricknode Broker and Bricknode Lending, are crucial services for the customers and due to the complexity of products like e.g. Bricknode Broker, the Company is able to create a strong moat. Due to the provided flexibility and customization on the platform, Bricknode have been able to create long as well as valuable relationship with its customers. Services such as brokerage and lending also results in high switching costs for customers, given that the service can be seen as a core part of the customers offer to the end-users. Bricknode’s agreements have therefore a high Total Contract Value (TCV), which strengthen’s the moat around the business. As a result, the Company has a very low churn, leading to highly predictable recurring revenues.
Ledning & Styrelse
Samtliga analyser av bolag från och med år 2020 betygssätts utifrån ett nytt betygssystem - Värdedrivare, Historisk Lönsamhet och Ledning & Styrelse sträcker sig från 1 till 10, där 10 är högsta betyg. Riskprofil sträcker sig från 1 till 10, där 10 är att anse som högst risk. Aktieanalyser av bolag publicerade innan 2020 har betygssatts utifrån en annan modell.