Proactive Investors Report

Manalto Ltd (ASX:MTL) has acquired Hearis, an Australia based social media management platform,
which will grow its existing customer base and revenues in Australia.

The purchase gives Manalto immediate access to an active customer base generating revenues of
$75,000 per annum.

Customers include retail and multisite businesses such as Ray White Real Estate, Hairhouse
Warehouse, Kwik Copy and Zarraffa’s Coffee.

Growth opportunities exist to scale up utilisation of the acquired customer base.

Anthony Owen, CEO, commented: “As an Australian company based in the U.S., the purchase
gives Manalto an opportunity to strengthen its presence in Australia to achieve wider penetration
of the Manalto Enterprise solution into the Australian corporate market.”


Background

Manalto provides companies with software to manage social media, it has two products, Sóshlr and
Manalto Enterprise.

Manalto is headquartered in Washington, D.C. with offices in the Netherlands, Australia and South
Africa.

Manalto has two products, Sóshlr, which is targeted at SMEs and Manalto Enterprise, which is targeted
at larger businesses.

Sóshlr and Manalto Enterprise give Customers an easy to use social media management solution.

This means businesses have greater control to coordinate brand management and marketing inside
Facebook, Twitter, Linkedin and Instagram from a single online dashboard.

Sóshlr is distributed exclusively via channel partners to SMEs and Customers may purchase 1-50
licenses.

Manalto Enterprise is sold to larger enterprises with Customers purchasing 50+ licenses. Manalto
Enterprise is sold both directly and through channel partners.

Revenue is generated through a subscription based model where Customers pay a monthly fee
depending on the numbers of licenses required.


Analysis

The purchase of Hearis allows Manalto to grow its revenue base immediately as well as create
opportunities for organic growth through the acquired customer base.

The acquired customer base, which includes multi-site businesses such as Ray White Real Estate,
will build a solid foundation for the company’s presence in Australia.

Furthermore, the acquisition will not increase operational overheads to Manalto, which highlights
the ability Manalto has to scale up operations.

Manalto remains leveraged to the high-growth social media industry and has completed an effective
June quarter expanding the distribution and sales channels of its social media products.

Manalto remains in a growth phase with two established competitive products that it can sell through
vendors, cloud platforms and resellers.

The opportunity for Manalto is to grow sales by growing its addressable market, which comes from
continuing to sign distribution agreements.

News flow surrounding the signing of new clients and distribution agreements will act as catalysts for
the stock.


June quarter highlights

Manalto’s recent focus has been on developing its distribution channels for its social media products.

By partnering with cloud distribution channel partners, the company expands its global sales
capability without increasing overheads.

Highlights from June include:

- Increased sales outreach in the U.K., Europe and Asia Pacific by outsourcing sales to specialist
cloud sales companies;

- Signed Ingram Micro, Inc. (NYSE:IM) allowing both Sóshlr and Enterprise to be sold to its
network of 200,000 resellers;

- The signing with further cloud application platforms allowing resellers to sell business application
to their customer base; and

- The signing of three Enterprise Customers.