This wording is something that excites me about UPD. From Page 1.....
• The Company aims to develop a highly scalable platform, whereby the vast majority of Business partners, especially local service providers, do not need to interact with a human for sales and account management. As a result, the Company will continue to grow revenue by increasing the utility of its Business Products rather than expansion of its sales team. The Company is investing heavily upfront to build the Updater platform such that
costs do not increase in line with revenue as it scales.
Obviously UPD has spent and is still spending a largish sum of money to develop its App/Platform along with forming and developing business partners and all the work needed behind the scenes (or App). All this setting up of it's business takes time and money which in some ways help reduce the risk of other competitors... i.e It takes a lot more than just coding up an App.
With these Local services Vertical it appears that UPD can deliver businesses/Marketeres valuable accurate data and help bridge a gap marketers have which in turn would save UPD's business partners money as Updater users would and could be "new" to the local areas... Accurate targeting for marketers must be high priority and result in better results i would imagine (less dilution) from bottom page 1...
" Updater estimates that local Businesses spend US$30B-40B in marketing annually to engage US households (this figure excludes the marketing spend associated with national retailers, i.e., big box / pharmacy, etc.). Updater has identified that local Businesses generally view targeting Movers as a key strategic priority, but struggle to efficiently target new residents in a given neighborhood early in the
2 move lifecycle. As such, Management views the Local Services vertical as an enormous market opportunity. "
And the next paragraph....
"Updater consistently receives feedback from its Users that various relocation expenses (which are often unexpected or underestimated) are among the most significant stresses of moving. Updater has identified that many Businesses (particularly local service providers) that seek to communicate with Movers are willing to offer special and unique discounts to Movers if brand loyalties have not yet been established with stores near the new home. As such, Updater has identified that Businesses will leverage Updater’s platform to run particularly deep discounts and promotions because Updater can verify that its Users are new residents in a given neighborhood. In turn, Updater’s platform will deliver increased value by introducing uniquely valuable promotions and deep discounts (which may even be ‘loss-leaders’ for local stores to enable long-term loyalty with new Movers)."
Couple of things i'm unsure on is they say they are....... Page 3..... " The Company is actively selling Business Products in five (5) verticals, ahead of schedule . Yet they also announce the fifth Vertical and also go on to say....
Page 1.......
" The Company plans to launch Paid Programs in the Local Services vertical during Q4 CY18, with a new 2018 goal for the Local Services vertical of 500+ Paid Programs for unique store locations, operational by Year-End 2018 "
So are they currently selling 5 Verticals or does the fifth one come online CY18 Q4??
Page 3.......
Also they are now saying............. " Management remains confident that if it achieves its stated vertical-specific goals for Paid Programs, then it will reach its stated goal of total revenue in the range of US$19m to US$23m in CY2018. "
Compared to the announcement before this one when they seem, imo, a bit more confident just from the wording which was....... Page 1 14/June.
https://www.asx.com.au/asxpdf/20180614/pdf/43vrz6fxqdg8hn.pdf
• Reaffirms CY2018 guidance of total revenue in the range of US$19m to US$23m as previously stated in the Quarterly Activities Report lodged with the ASX on 30 April 2018 (the “Quarterly Report”);
• Confirms it is on track to achieve its Paid Program goals within the verticals of PayTV/Internet, Full-Service Moving and Insurance as detailed in the Quarterly Report
They've gone from confirming to be on track to achieve its Goals to today saying IF it achieves its Goals....
I might be reading too much into it and quarterly not far off anyway but does anyone else have any thoughts on the change in wording?
Best Wishes
