LVT - Valuations, page-123

@haka,

I spoke with Peter and Simon about this topic recently.

Peter, in particular, was extremely genuine, laidback and had a confidence of someone who has answers to everything and anything that could be thrown at him. Simon was also extremely nice, he had spent a year in Oxford with his partner and actually offered to stay in touch with me for the purposes of telling me about the best pubs in Oxford! Both were extremely articulate.

Across the 30 minutes we had, I only had time to cover off on 3 core topics: those being a) the market more broadly and how fast Peter expected to see penetration of low-code intranets change over the coming years, b) the long term vision for the LiveTiles product suite, and then c) the role of the LiveTiles AI offering in the long term going forward. Upfront, we very briefly touched on COVID and PNB re-confirmed that LiveTiles feel confident going through the storm, with high levels of customer stickiness.

In terms of the TAM, the KTA was that no/low-code intranets are a very, very new market/solution, with LiveTiles inventing the category back in 2015. The market is only starting to become more formalised today, and Peter estimated that we are at about 4,000 organisational users currently today (from the grand addressable total of 300,000 organisations). Peter expects uptake to accelerate from here (in typical S-curve adoption fashion) but expects that we will never get to full 100% penetration as there will always be users that remain with custom-coded solutions.

Simon said that Forrester Wave is about to release a “magic quadrant” on the market (i.e. a formalised study on low code intranets as a new market) in the coming months. To me, this highlights how nascent the space is given that studies like this don’t even exist yet.

When I pushed PNG on quantifying the uptake, he suggested that we might move from c.1.3% market penetration today to c.4% market penetration in the next 18 months.

You can easily work out LVT's market share from the two slides of the investor pres that I have posted here (it is circa 30%)

T.E.P.