07 September 2021
By Maynard Paton
Results summary for System1 (SYS1):
- A better-than-expected H2 accompanied some bold management commentary that cited an eventual £1 billion market cap.
- The acceleration towards ‘scalable’ data products continues, with ‘disruptive’ pricing and partnerships with ITV and LinkedIn spearheading the transition.
- Downgraded option targets and upgraded director pay looked awkward given the optimistic narrative and receipt of government pandemic support.
- Greater net cash, a mooted share buyback and a 21% adjusted H2 margin suggest the accounts have recuperated from their pandemic nadir.
- Despite extra growth investment limiting near-term earnings progress, long-term multi-bagger upside may still be obtainable. I continue to hold.