BLOX

Infoblox Inc

TMT


Presented:02/23/2016
Price:$15.78
Cap:$0.94B
Current Price:$26.45
Cap:$1.47B

Presented

Date02/23/2016
Price$15.78
Market Cap$0.94B
Ent Value$0.62B
P/E RatioN/A
Book Value$4.84
Div Yield0%
Shares O/S59.27M
Ave Daily Vol921,183
Short Int9.57%

Current

Price$26.45
Market Cap$1.47B
Infoblox Inc. provides automated network control and appliance-based solutions, which enable dynamic networks and next-generation data centers. Its solution combines real-time IP address management with the automation of key network control and network change and configuration management processes in purpose-built physical and virtual appliances. It is based on proprietary software that is highly scalable and automates vital network functions, such as IP address management, device configuration, compliance, network discovery, policy implementation, security and monitoring. In addition, the solutions use real-time distributed network database to provide always-on access to network control data through a scalable, redundant and reliable architecture. The company was founded by Stuart M. Bailey in February 1999 and is headquartered in Santa Clara, CA.

Publicly traded companies mentioned herein: Gartner Inc (IT), Infoblox Inc (BLOX), Microsoft Corporation (MSFT)

Highlights

The presenter is long Infoblox (BLOX) and sees upside for the ~$1 billion market cap provider of DNS, DHCP, and IP address management (collectively known as “DDI”) solutions. The total addressable market appears to be misunderstood by the Street, as Gartner’s TAM estimate is just $450 - $500 million and management’s estimate is $7.5 billion, said the presenter. From a practical perspective, he sees the opportunity at closer to $2 billion, which gives BLOX plenty of room to grow as the market leader in enterprise DDI. In addition, net cash on the balance sheet is ~35% of the market cap, but $150 million of that is deferred revenue so BLOX is really sitting on cash equating to ~20% of its market cap. Given its high margins, renewal rate and percentage of maintenance revenue, it is the presenter’s opinion that the company is an acquisition target with 40% or better upside from current levels (~$15 - $16).

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Idea Discussion

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