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 https://seekingalpha.com/article/4371117-livechat-software-overlooked-european-saas-story-rare-combination-of-growth-and-profitability