This specialist provider of cloud communications grew EBITDA by 13% in FY21, to $43m, even though revenue fell 5%. The company is rapidly growing the number of phone numbers on its network, up 29% in FY21. MNF has strong operating cash flow, no debt and $22.7m in cash as at June 2021. The company’s SaaS-based platform allows rapid deployment of communications services in the cloud. A key competitive advantage for MNF is 100% ownership of its own voice network, allowing better control over quality and reliability.
We like the fact that MNF Group is not just gaining market share domestically, but is growing internationally in the Asia-Pacific Region as well. On consensus numbers, FY22 sees an EBITDA decline, due, we think, to international expansion costs. Double digit growth is expected in FY23 and FY24. The EV/EBITDA multiple of 12.3x for FY23 therefore looks inexpensive.
Read the most recent article on MNF here