Tag Archives: Independent IPO Research

Nextracker: Working to Optimize the Solar Grid

Nextracker logoNextracker (NASDAQ: NXT), a provider of solar tracking solutions for solar power projects, was founded in 2013 by a team led by Daniel Shugar.  Today, Nextracker is headquartered in Fremont, California, where it still led by Shugar, who acts as the company’s Chairman and CEO, as well as one of Shugar’s founding partners, Alex Au, the company’s current CTO.  Operating with a March 31st fiscal year end, Nextracker recorded fiscal 2022 revenue of $1.5 billion, a 21 percent increase over the prior year.

Nextracker debuted on the NASDAQ on February 9th, 2023, in 30.6 million Class A common stock at an IPO share price of $24, the company netted roughly $700 million from the offering, and holds a market cap of roughly $1.4 billion.   When added to the company’s pre-IPO cash balance of $84 million, Nextracker held $818 million in cash with no debt immediately after the offering.  With a recent share price of $31, the company carries a market cap of roughly $1.4 billion.

Nextracker’s mission is to be the leading energy solutions firm in the world that enables the smartest, most reliable, and most productive solar power solutions for future generations.  The company has grown into a top provider of intelligent and integrated hardware and software solar tracker offerings that are used in both utility-scale and ground-mounted solar projects worldwide.  Nextracker’s solutions allow solar panels to follow the sun’s path across the sky, and optimize power output and performance based on this data.  With these solutions, Nextracker has led the solar industry in gigawatts shipped both globally and domestically every year since 2016.

The largest gating factors that prohibit the immense growth in the popularity of solar power solutions are cost and energy output.  Nextracker’s systems address both of these concerns, as its solar tracking offerings enable solar panels to generate the most power output possible in the most cost-efficient manner.  Nextracker claims that solar trackers produce up to 25 percent more energy than solar power projects that do not track the sun.

Historically, the solar industry has operated using its established standard sun-tracking architecture that enables rows of solar panels to move in tandem as a single unit to follow the path of the sun.  Nextracker has created the next-generation solar tracker that empowers solar panels to move independently – rather than as a single unit – to allow for more precise positioning and provide more value to customers.  We note that Nextracker currently boasts roughly 170 patents worldwide, with approximately 70 issued in the United States.

Nextracker’s customers generally encompass engineering, procurement, and construction companies (EPCs), in addition to solar project developers and owners.  Nextracker’s more than 200 customers hail from over 30 countries spanning six continents around the world.  Moreover, in fiscal 2022, 62 percent of Nextracker’s revenue came from the United States, with the remaining 38 percent of sales generated abroad.  We note that in fiscal 2021 and fiscal 2022, Nextracker had one customer, SOLV Energy, contribute at least ten percent of total revenue. For the six month period ended September 30, 2022, the company recorded a gross margin of 13 percent, along with an operating margin of eight percent.

Tags: Independent IPO research, IPO research on Manufacturing Stocks, Independent Research on Nextracker.

Bumble: A Different Kind of Dating Platform

Bumble logoBumble (NASDAQ: BMBL), an online dating and social networking platform, was founded in 2014 by Whitney Wolfe Herd. Headquartered in Austin, Texas, with offices in Barcelona, London, and Moscow, Bumble was created with women at the center; a dating solution where women make the first move. Bumble is rewriting the script on gender norms, with a platform designed to be safe and empowering for women while also providing a better environment for all. Bumble utilizes innovative technology solutions to build a safer and more inclusive way to connect online, regardless of gender. Consensus estimates call for the company to generate revenue of $724 million this year, with profitability bordering on break-even.

Bumble debuted on the NASDAQ on February 11th, 2021, in a 57.5 million Class A common stock offering, priced at $43 per share. Bumble’s pre-IPO balance sheet consisted of $218 million in cash with $628 million in debt. When added to the $2.5 billion raised from the offering, Bumble possessed close to $2.7 billion in cash with $628 million in debt immediately after the offering. With a recent share price of $60, Bumble carries a market cap of approximately $11.2 billion.

Bumble’s platform enables users to connect and build healthy relationships on their own terms. Further, Bumble believes there is an opportunity to extend its solutions beyond dating, to encompass relationships across all areas of life, including friendships, careers, and more. By empowering women across all their relationships, Bumble feels it can grow into a leading global women’s brand.

Bumble currently operates two apps, Bumble and Badoo, where more than 42 million users come every month to discover new people and connect in an empowering, secure, and safe environment. These two apps run on a common infrastructure, allowing insights to be shared between the apps. Bumble believes this is an integral piece in providing its users with high-quality and personalized experiences. Bumble facilitated an average of more than 150 million messages sent per day across its two apps in the nine months ended September 30th, 2020.
The Bumble app was released in 2014 and was one of the first dating apps built with women at its core. With Bumble, women make the first move, and have done so more than 1.7 billion times since the app’s launch. Bumble supports roughly 12 million monthly active users, and is the second highest grossing dating app in the world, according to Sensor Tower. Bumble is a leading online dating platform in many countries, such as the United States, the United Kingdom, Australia, and Canada. During the nine months ended September 30th, 2020, Bumble boasted 1.1 million Bumble App Paying Users.

The Badoo app was founded by Andrey Andreev and first launched in 2006. This app was a pioneer in free web and mobile dating products. Badoo’s slogan of “Date Honestly” deeply connects to Bumble’s focus on building meaningful relationships for everyone. Bumble and Badoo are two of the highest grossing online dating apps in the world. According to Sensor Tower, as of August 2020, Bumble ranked in the top five grossing iOS lifestyle apps in 30 countries, and Badoo ranked among the five highest grossing iOS lifestyle apps in 89 countries.