Billions are being funneled into this megatrend technology, in what could be the fastest multi-industry transition in history.
It was just 20 years ago that the first product to carry the name BlackBerry hit the market, to the awe of those who owned one, and the envy of those who didn’t.
Nearly five years of research and tens of millions of dollars later, and the company had fundamentally changed the means of corporate communication.
Never before had a handheld device combined cellular communication (at the time a major disruptor in its own right), with a processor capable of also facilitating email communication.
They may not have realized it at the time, but what Blackberry had developed was the blueprint for the modern smartphone.
Then in 2007, Apple hit the scene with a competitive product that took the technology many steps further. Once a dominant player in personal computing, Apple had, for many years, been relegated to second place behind behemoth, Microsoft.
At that time Blackberry had reached its peak, sitting comfortably with 20% market share.
Yet the company was slow to adapt to changing market trends, a weakness Apple was eager to exploit.
Apple’s user-friendly interface offered an unprecedented ability to organize schedules, access media platforms, and simplify tasks and routines. With each new generation, they added features that captured the public’s attention.
It was a complete redesign of the mobile device paradigm. And for investors who caught the tide early, it was also a once-in-a-generation opportunity.
The early days of the digital revolution had made Blackberry the biggest force in mobile computing. Then came Apple, which put hundreds of millions of cell phones into the hands of the masses.
Today the iPhone has 29% market share and BlackBerry comes in at a technical 0%.1
Nobody ever thought it could happen, but it did.
A second chance to invest in something BIG
“The cloud is becoming as fundamental to how the world runs as the electric grid, telecom network, or the railroad.”3The transformation is happening so fast that $175 billion IT leader Cisco predicted:
Within the next year, 94% of all internet-enabled work will take place in the cloud.4While many organizations are already well into this transition, there are still tremendous opportunities to be had in sectors that were initially hesitant to embrace SaaS. That’s exactly the target of one undervalued software developer, as they bring to market an innovative approach to modernizing data systems. Currently the company’s platform is deployed in over 800 organizations across North America. The company has since scaled up its operations, doubling its staff over the past year to a total of over 85 employees. They also nearly doubled revenue last year, and are projected to do even better this year.
A smarter revenue model
Unlike traditional software plans, in which an institution buys the software and then pays minimal support or upgrade fees, SaaS flips the model on its head, with the bulk coming via reoccurring revenue.
That means that once the technology is deployed, over 80% of contracted revenues are reoccurring based on ongoing services, providing the company with steady cash flow.
During the first quarter of 2022, the company has focused primarily on the Environmental Health (EH) space, signing a litany of contracts for its flagship suite of products.
That amounts to contracts worth $3.62 USD million in the quarter, with a total ARR under contract of $4.45 million.
The company also has over $25 million worth of business in its sales pipeline.
In every metric, the company looks to be on track for a breakout year financially. And that’s all from a company with less than a $25 million market cap.
Let’s just break that down.
That means currently the company is trading at approximately 5 times revenue.
And that’s only taking the Environmental Health market into account. The company’s technology adheres to a myriad of applications within EH and other types of agencies; all with significant budgets.
It appears there is nothing but upside for the rapidly growing company that still trades at a price well below its peers.
But it won’t for long. As more news is generated and word gets out, expect investors to discover this up-and-coming SaaS provider.
Sign up to receive more information about this innovative young company that is poised to take the lead.
I do not want to under emphasize the Environmental Health (EH) market. It is, and will be, our core focus for the next 2 years. And any public facing copy I would not want to be misconstrued as negative were it to be read by an EH customer.
Something like “The company’s technology adheres to a myriad of applications within EH and other types of agencies; all significant budgets.”
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