Wandisco's (LON:WAND) full year results confirm the transformational year with bookings growing by +45% y-o-y on a cost base that increased by only 5% and cash burn was substantially reduced. Today’s announcement of an OEM partnership with Alibaba (NYSE:BABA) adds significantly to an already exceptional platform for growth. With an impressive roster of tier one partners likely to start contributing to the mix, we upgrade our FY18 and FY19 bookings estimates by a further 7% and 5% and see scope for more to come.
OEM partnership with Alibaba
The announcement of an OEM partnership with Chinese internet giant Alibaba adds a significant new channel for growth. Alibaba is the sixth largest cloud platform globally and revenues doubled in Q4 to $553m ($2.2bn annual run rate). WANdisco Fusion will be embedded as a standard component in selected Alibaba cloud solutions. The press comment from Alibaba cites the migration to cloud, disaster recovery and hybrid cloud enablement as the use cases underpinning the partnership, highlighting the broad applicability of Fusion. We understand that the technical integration is close to completion and we expect the companies to start building a commercial pipeline with immediate effect, with first deal flow likely in H2.
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