WEB +13.48%: Reported 1H25 results that were inline with recent guidance though the announcement of a share buy-back and an earnings outlook for FY25 that was ahead of consensus saw the shares rally;
- $150m buyback announced largely used to offset future dilution from $250m convertible due in 2026.
- Management reiterated medium term revenue margin expectation at 6.5%.
- FY25 guidance maintained with TTV at $5B, while they expect FY25 EBITDA to be $117m-$122m vs consensus at $114m.
The stock has been sold off aggressively since demerging the B2C operation with a surprise downgrade to earnings mid-October briefly pushing the shares below $4. Some of the haze is now clearing for the B2B business that was considered to be the jewel in the combined crown, only to dramatically underperform the smaller WJL since splitting. We’ve looked at WEB several times without buying it, and are again becoming interested ~$4.50.
MM is now cautiously bullish WEB ~$4.50
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