News/Media/Articles

Interesting video from July 2020 focusing on B2B SaaS companies, with SP3 CEO, Gerard Dyson.

• "The Spectur SaaS platform is analogous to an iPhone with ongoing data plans, there is both a hardware and a software component. SP3 customers buy the security hardware and a data plan, but also SaaS "applications" that are focused on features such as security, time-lapse systems, warning systems, general surveillance systems etc. All of these are additional modules that can be purchased, increasing the average revenue per customer. The breadth of applications is currently being expanded upon."
• "We are focused on high-value problems. For high-value problems, customers are willing to invest. We have a stable platform that we can add more SaaS applications on top of, i.e. increasing the share of wallet. Our platform is very programmable, flexible and stable."
• We have a partnership with CSIRO which will underpin further role out of SaaS applications. We are also open to 3rd party visual AI developers with our open platform, to deploy further technology. This ecosystem allows us to flex to create more value for customers, it is done through the SaaS vehicle"
• "Churn has been low for us for many key reasons. From the viewpoint of a customer, when you invest a material amount in hardware, you don't want to put that aside. Ongoing SaaS spending is a small amount relative to the sunk cost made in our hardware, this makes our services very sticky."
• "We generate revenue from a number of areas. Hardware sales dropped completely in March off the back of COVID, but, SaaS revenues continued to grow through that period. Our churn is well below our customer growth levels. High margin SaaS revenues have supported us through COVID. Hardware sales have since picked up as well and resumed a growth trajectory."
• "We are gradually building an ecosystem - this will count in the long term. We are building a platform. This increases our competitive moat with more value for the customer and higher switching costs. This is all about driving extra stickiness and wonderfully resilient SaaS revenue" - 12-minute mark onward
• "The challenges we have had prior to 2020 have been mostly about discipline. This can dilute your efforts. But, in the last 12 months, we have been very disciplined focused on a key number of applications in key sectors in Australia. We have moved fully to cloud-based processes. Now we are moving into the stage where we want to materially grow the organisation at the top line."
• "We are scaling up now while being respectful of the equity in the organisation"
• "Institutional capacity is also important for us. There is a finite capacity of an organisation to institute growth and we will concentrate on our core. We see great opportunities for growth going forward"

T.E.P.