Strong week for public cloud companies 💪

This is the Cloudly Update. Helping you stay above the Clouds.

Today we bring you:

Positive performance last week for public cloud companies

Repurchase program at WIX

UBS’s 50% application migration to Azure

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Positive performance last week for public cloud companies (1 minute read)

The performance of the BVP Cloud Index was positive last week, with a gain of +7.6%, which can be compared to the increase for the large NASDAQ index of +5.2%.

When looking at median Forward Revenue Multiples, the current valuation level is close to an all-time low and stands at 4.5x. This can be compared to the market peak of 15.5x in February 2021.

The last time the markets saw this valuation level was in 2016, when the median multiples bottomed out at 3.5x. Holding the basket of public cloud companies from the "winter" of 2016 to the peak levels of 2021 would have created gains over 1 000%

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Repurchase program at WIX (2 minutes read)

WIX Board of Directors has authorized a share repurchase program and may repurchase up to $300 million of its ordinary shares following its share purchase of $200 million last year. It can be done using open market purchases, privately negotiated transactions, or otherwise.

According to management, their current stock price represents an attractive valuation for a repurchase.

The company expects to fund repurchases with cash on hand and future cash generated from its operations.

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UBS’s 50% application migration to Azure (2 minutes read)

UBS plans to have more than 50% of its applications running on Microsoft Azure.

UBS will leverage Microsoft's PowerApps and Power Automate to quickly build professional-grade applications, create automated workflows and connect disparate data sources.

The partnership includes greater collaboration in areas like carbon reduction and co-development of innovations in AI-enabled led services.