Fri, Aug 29, 2014, 11:45 AM EDT - U.S. Markets close in 4 hrs 15 mins

Recent

% | $
Quotes you view appear here for quick access.

ClickSoftware Technologie (CKSW) Message Board

  • thegunnerab thegunnerab Jul 20, 2013 11:38 AM Flag

    TOA Technologies... Intersting Info

    The following snippets are from recent article in Cleveland:

    --------------------------------------------------

    "We're on an aggressive growth path," said chief executive officer Yuval Brisker, who founded the company with chief technology officer Irad Carmi. "We've got a worldwide market and it's a robust market. Every single person doing work in the field is a potential customer for us."

    Starting with a single client, Arhaus Furniture of Bedford, the business took root, grew steadily and then exploded. Sales doubled in 2012 to reach $41 million. The company is now operating in 27 countries. It runs a software development center in Ukraine and employs nearly 500 people worldwide.

    The cash infusion will allow TOA to invest in global sales and marketing as well as product innovations, Brisker said.

    The company also plans an expansion of its workforce. The headquarters staff in Beachwood should grow from 56 to about 80 by the end of the year, he said. Worldwide, the workforce will grow from about 460 to more than 500.

    ---------------------------------------

    Whats interesting is that TOA had almost the same amounts of employees as Click Software while selling only 40%. ($41 million vs $100 million in 2012).

    No wonder they were bleeding cash and needed the cash infusion. It also explains why Click is expanding and grew from 400 employees to 600 in 18 month period.

    P.S. lets see if we can break the record with this informative post,

    The Gunner

    Sentiment: Buy

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Thanks Gunner... Very interesting...

      BTW.. I would not worry about people's thumbs... I have never used those things and find them meaningless..

      Cheers

    • Thanks for posting. FWIW...Linkedin shows CKSW has 561 registered employee. TOA has 282. I've found linkedin generally has about 65-80% registration success in companies I track.

    • Gunnar,

      Thanks for the heads up on the TOA article. As a private company, reliable numbers on TOA's revenues, customer base and staffing levels have been hard to find. I had no idea they had grown to 600 employees.

      One note of caution. Yuval Brisker is a very effective, enthusiastic promotor for TOA. Where Click tends to be conservative with numbers (2013 guidance an exception) Yuval leans way out on the other side of the ledger. $41 million in 2012 sales could refer to recognized revenue. It could also refer to the contract value for multiple year SaaS contracts. Signing a five year SaaS deal, for example, would be a big number. Click's $100 million reflected recognized and received revenue.

      The $66 million raised confirms what Brisker said in the article: TOA will put the pedal to the metal in terms of hiring and market expansion. The bad news is that makes TOA a larger, more formidable and well funded competitor. The good news is it means TOA sees the same "wow" market opportunity in scheduling and mobility that caused Click leaders to aggressively ramp up their staffing levels over the past 18 months.

      The key difference is Click did it while generating positive cash flow... a sustainable business model. TOA, who raised another $17 million several years ago, appears to have a business model burning significant amounts of cash. At a certain point that model is not sustainable.

      Another interesting but still missing number is what % of TOA the new investors received for $66 million. If anyone has a sense of it I would love to hear from you.

      Good luck to everyone.

      Fujigrower

      • 2 Replies to fujigrower
      • Fuji,

        The total influx up to Series D is approximately $30 million.

        Assuming a pre-money valuation of $200 million, or so, $66 million breaks down to 33%.

        Assuming that they retained control until the $66 million injection, my guess is that ownership is diluted down to 20% or less at this point. Certainly below the control-level, but still very reasonable.

        Hope this helps.

        Best,

        pajacobsen

      • Fuji,

        You mentioned $17 million raised by TOA previously.
        The previous round was $35 million. My guess is in 10 years since TOA was established, they raised lots of money, probably close to $200 million.

        The article does mention that the latest investment was a minority investment. So at the very minimum, it valued TOA at $200 million, most likely $300 million

        My guess is TOA is valued at least as Click if not more.

        Crazy? I know,

        The Gunner

        Sentiment: Buy

    • Just asking- if you mark it thumbs down- so what is so negative about the facts that Gunner posted. Can you have the courage to explain that thumbs down.

 
CKSW
8.01+0.03(+0.38%)11:36 AMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.