Revenue Generating ASX Junior Leveraged to the $50BN Big Data Explosion | The Next Tech Stock
FINALISED: 29-03-16 PUBLISHED: 29-03-16
Revenue Generating ASX Junior Leveraged to the $50BN Big Data Explosion
Call it what you will: big data or the information explosion, but know that whatever its given name, data’s growing influence has a profound effect on almost every aspect of peoples’ lives.
The concept of ‘Big data’ is the analysis of massive sets of information to identify trends and patterns – and make predictions that can be profitable.
For the past few years, major retailers have been investing large sums of money into big data – all in the effort to lure customers in and influence their buying decisions by understanding their behaviour and then targeting them with product solutions. The big data market is big – set to be worth $50 billion next year, and retailers are scrambling to get ahead of each other in the big data race.
PricewaterhouseCoopers estimate that slow moving Australian retail and consumer businesses, by not leveraging their existing internal data, are missing an opportunity worth $3.8 billion…
To amass ‘big data’ is one thing, but quite another is to understand it, and make important decisions based on it.
We have been alerted to an ASX listed tech company that is harnessing the power of data across four different products, which all deliver unique data driven insights for their users.
This company collects data and monetises it by selling innovative products that appeal to consumers and retailers alike. This is no idea in a basement – this company already has traction in the market and is generating strong revenues now – $5.3 million in CY2015.
The last few months have seen this stock being significantly oversold due to a management restructure, however the products and strong revenue forecasts remain. From one product alone, forecast revenue for 2016 is $8 million, with 75% committed already.
Future growth is locked in given multiple recurring revenue deals still to flow through the balance sheet.
This company is currently capped at just $14 million – and we have just noticed some strong on market buying by key management, indicating they are clearly backing this story with their wallets.
However this is still a junior stock, and caution must be applied to any investment here.
With indications of major catalysts on the way in the coming weeks, this could be the last time this stock remains at current levels…
Introducing with vigour:
Revenue Generating ASX Junior Leveraged to the $50BN Big Data Explosion | The Next Tech Stock
Invigor Group Limited (ASX:IVO) is a data analytics and business intelligence company with a growing presence in both business‑to‑business (B2B) and business‑to‑consumer (B2C) markets.
In order to strengthen its balance sheet and continue its growth trajectory, IVO is currently in the midst of a Share Purchase Plan ending on 31 March in which eligible shareholders can acquire up to $15,000 of additional shares in the company at 4 cents per share.
IVO’s current core products are as follows:
Insights Retail – an analytics platform for brands and retailers – $2 million forecast revenue, $4 million in the current pipeline where IVO is shortlisted
Shopping Ninja – a comparison site that provides best value options to consumers on over 100,000 offers – over 100,000 monthly users
Insights Visitor – an analytics platform that can extract data from any Wi-Fi hotspot or from telco – Estimated revenue of $1.75 million
Condat – smart media solutions including a semantic engine and content distribution capability – FY2016 forecast revenue of $8 million
Revenue Generating ASX Junior Leveraged to the $50BN Big Data Explosion | The Next Tech Stock
We will go into more details on IVO’s product suite shortly – but as you can see above, these products are all well established, and the next few months will be all about revenue growth for this $14M capped company.
To hear it all direct from the top brass at IVO, here is IVO Executive Chairman Gary Cohen at last year’s TechKnow conference explaining how big data a la IVO works
Revenue Generating ASX Junior Leveraged to the $50BN Big Data Explosion | The Next Tech Stock
In brief, IVO’s products collect data and monetise it in a variety of ways – including through annual subscriptions, professional services, as a commission on sales, from providing promotional platforms for brands and retailers, from basic transactions for services and through software license fees in the case of Condat (more on Condat later).
IVO thus offers a full scale big data solution that provides innovative business intelligence to create a win-win for businesses and consumers.
With that in mind, let’s take a further look at the products and the revenue models surrounding them. The insight of a ninja
It seems like a long time ago now, but before the internet, companies and brands used any market information they could, including data received from TV and print advertising campaigns to create operational reports – not the best data as you can imagine, relying on a fair bit of guess work.
They would then use the information from these reports to build their customer promotions and understand how well their products were tracking compared to their competitors.
As the market shifted online, data tracking companies had to build tools to effectively meet their clients’ data collection needs.
IVO was already supplying online and offline data, but they decided to release their own products to capture more of the market.
The first product IVO launched was ‘Insights Retail’. Insights Retail
Insights Retail provides real-time data to brands and retailers on competitor products, pricing, advertising, and other changes in the market: