Latent View Analytics: Next Gen Tech?

“The long-term trajectory again continues to be good. The pipeline continues to be strong. There are several large opportunities within the pipeline today which could be transformational in nature, but what that also means is there is a slightly longer sales cycle for some of these pipeline deals as well as there is a procurement angle that we have to go through. There is an RFP route in some of these deals. But the good news is that analytics as a space is now witnessing some of the large size transformational deals and this could be in some sense like a watershed moment for the industry itself. We could see many more of such deals coming through in the future, that’s something that we are very excited about.”

– Mr. Rajan Venkatesan, CFO

Stock Data
Ticker	LATENTVIEW
Exchange	NSE
Industry	ANALYTICS

Price Performance
Last 5 Days	+7.93%
YTD	-5.08%
Last 12 Months	-28.49%

*As of 11.04.2023

Company Description:

Latent View Analytics is an Indian analytics and digital solutions company that provides services to clients in industries such as retail, consumer goods, and technology. Founded in 2006, the company has grown to become a prominent player in the Indian analytics industry, with a focus on data science, AI, and machine learning.

Latent View Analytics offers a range of services, including data science, AI, machine learning, digital analytics, and marketing analytics. The company’s data science services include predictive modeling, optimization, and data visualization. Its AI and machine learning services cover areas such as natural language processing, computer vision, and deep learning. In the digital analytics space, LatentView Analytics provides services such as web analytics, social media analytics, and mobile app analytics. The company’s marketing analytics services include customer segmentation, campaign optimization, and marketing ROI analysis.

Latent View Analytics has established itself as a leading player in the Indian analytics market, with a strong focus on data science and machine learning. The company’s client base includes some of the world’s largest and most well-known companies, such as Coca-Cola, eBay, and Microsoft. 

Key Strengths:

• Strong Client Base: LatentView earns a substantial portion of revenues from big clients. As of September 30, 2022, it earned 36.9% of operating revenues from clients with exposure to over Rs 500 million and 34% from clients with exposure to between Rs 100 million and Rs 500 million. 

• Innovation: Technology advancement is the key to success. The company is striving to provide clients with innovative products and services to help them with digital transformation. 

• Competition: Though competitive pressure exists in the industry, LatentView is in an advantageous position with a very low amount of debt, reflecting strong capital and liquidity position. 

• Revenue Growth: Grabbing a high market share, LatentView recorded strong revenue growth over the past four years with a CAGR of 9.09% in FY2022. The uptrend continued in the first six months of FY2023 reflecting 38.2% YoY growth, which is expected to trend higher based on long-term contracts. 

• Earnings Growth: Profits after tax reflected an uptrend over the past four years riding on strong revenues. PAT margin increased from 20.2% in FY2019 to 30.2% in FY2022. The rising trend continued in the first six months of FY2023, depicting 230 basis points expansion on a year-over-year basis. Continuation of such a trend will help the company to withstand economic downturns and macro uncertainties. 

• Margin Expansion: LatentView’s margin remained strong over the past few years. It reaped the benefit of operating leverage gained from elevated contribution margins from consulting services’ incremental revenue. EBITDA margin rose to 29.9% in FY2022 from 25.2% in FY2019. It decreased slightly to 28.6% in the first half of FY2023 due to high costs but remained at elevated levels. 

Key Challenges:

• Competition: The analytics industry in India is highly competitive, with many established players and new entrants vying for market share. To stay ahead of the competition, Latent View Analytics must continue to innovate and differentiate itself with its services and solutions.

• Talent Acquisition and Retention: The success of Latent View Analytics is largely dependent on its ability to attract and retain top talent in the industry. With increased demand for data scientists and analytics professionals, the company must compete with other organizations to attract and retain the best employees.

• Evolving Technology Landscape: The technology landscape in the analytics industry is constantly evolving, with new technologies and approaches emerging on a regular basis. To remain competitive, Latent View Analytics must stay up-to-date with the latest trends and incorporate them into its solutions.

In conclusion, LatentView Analytics is a well-established analytics and digital solutions company with a strong presence in the Indian market. The company’s focus on data science, AI, and machine learning has helped it to secure a number of high-profile clients and awards. As the demand for analytics services continues to grow, LatentView Analytics is well-positioned to capitalize on this trend and further expand its reach both in India and globally.