Beeks Financial Cloud (LON:BKS)
Company Overview:
- They are a cloud computing company for capital markets
- They provide infrastructure in financial services data centres
- Their focus is on low latency networking, infrastructure, and analytics
- They don't handle non-trading infrastructure like CRM or email systems
- Product Offerings:
- Public Cloud: Shared infrastructure for smaller organizations
- Private Cloud: Dedicated environments for larger clients, driving recent revenue growth
- Exchange Cloud and Proximity Cloud: Standalone environments for tier-one organizations or exchanges
- Exchange Cloud:
- Allows exchanges to become cloud providers
- Deployed in exchange data centers
- Enables exchanges to offer cloud services to their clients
- Reduces setup time for trading environments from months to hours
- Unique offering with no direct competitors currently
- Business Growth:
- Company has achieved compound annual revenue growth of over 32% since IPO in 2017
- Aiming to maintain 25-30% annual growth
- Recently became cash generative
- Profit is up substantially
- EBITDA up about 27% year-on-year
- Market Position:
- First-mover advantage in their niche
- Building trust and partnerships with exchanges
- No direct competition in their specific offering
- Large cloud providers (AWS, Google, Microsoft) not currently competing in this space
- Future Outlook:
- Pipeline of potential clients is bigger than ever
- Exchange Cloud deals have potential for large total contract values
- Continuing to develop products and invest in the platform
- Working with existing and potential exchange clients to expand offerings
- Company Culture:
- All staff receive share options after one year
- Senior team could earn more elsewhere but choose to stay
- Average pay for board members is under £100,000 per year
- The CEO expresses confidence in the company's unique position and growth potential, while acknowledging the challenges of scaling and the conservative nature of their target market.
The CEO does not provide a specific timeline for selling the company. He mentions that while they will eventually scale and sell the business, it's still "a long way away" from where he thinks they can ultimately get to. He states:
- "I think be very honest right we will scale it and sell it but um um we're still a long way away from where I think we can ultimately get to"
- "I have shared with the staff where I would like to get us to it's not something I'm put in public domain um it sounded ridiculous when we 25 million market…
