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No. of Recommendations: 12
BD,
Nice post with lots of details. In my research, I came across the following article which links to a great many articles.

https://www.fool.com/investing/2019/12/03/this-robotics-stoc...

I did some online research. Here is a summary:

1. BP was the founder of RPA in 2001 and coined the acronym RPA.
2. 2 competitors (UI Path and Automation Anywhere) were valued at $7B in 2019 vs only $1.4B for BP. UI is growing fast. Automation says they are the biggest and CRM did their Series B funding round in 10/19 where they were valued at $7B. UI had $360M rev. in 2019. Automation may be similar.
3. BP P/S in 9/18 was 40. So, it is not correct to say the company has not been discovered. The company was a 10 bagger at 1 point. Also, analysts have known about RPA. So, why did they not invest and maintain a high P/S? Since late 2018 stk has dropped, MF says valuation concerns. rev continued to grow though now P/S has dropped to 10.
4. Per MF overall mkt was $1.5B in 2018 projected to $2.9B in 2021.
5. In 10/19 UI laid off 100s of workers and CFO resigned. But this was considered company and not RPA specific issue. In the same month Automation did their Series B funding. Salesforce led the funding round. Shows the interest among the key players. Also, Appian (1/20), MSoft (5/20), IBM (7/20) have made acquisitions in the RPA field in 2020. Clearly, we can say UI had a hiccup and RPA is being considered a positive new field.
6. BP is growing their customers. SAAS acquisition in 6/19 and getting some rev in latest Q. Last Q was impacted by covid but this half should be better as Europe recovered by May and has done well.
7. I found one -ve comment by a MF analyst in 11/19 (it is one of the lined articles in the above link)- He says "Blue Prism superb product, but not fully understood by wider market and has become tarred with the same brush as its more hyped rivals. technology growing pains and benefits not yet filtered to senior executives at companies whose support is needed before it’s scaled. Intelligent automation will become more important. When that happens, Blue Prism could be a big beneficiary.
8. This comment had me worried. Meaning the product is not selling like hotcakes. But BP has been growing fast. Plus all the positive acquisitions in this space see #5 above. Also, according to Gartner, hyper-automation, or the automation of tasks once performed by people, is the No. 1 trend in today's AI world. Enough said.

All considered I took a 3% position today. Company reports in late Nov. Would have to see how much Covid has impacted them. They withdrew their guidance and said last half had a 15-20% drop in billings which would indicate a slow down in future rev. But Europe did recover faster.
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