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Q & A and the AGM, page-215

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ravanelli77

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03/05/19

13:11

Post #: 38395748
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Originally posted by Chad3110: ↑

My SYT Q&A notes... the wife's notes may follow shortly...

Syntonic has access to 70% of the US Market – Verizon + AT&T
Syntonic Freeway app demo on iPhone
Dataflex BYOD – enhances productivity by 6.7 hours per week per employee
Dataflex – 2 versions – Small Business/Big Business
Dataflex 1% market share = 300Mil/year
Dataflex still in Pilot mode – waiting on iOS app completion before full launch
Last qtr – July 20 – launched SYT
Aug 1 – Tata agreement – 1400 mobile company agreements – perpetual license agreement
Google Play store – Top 25 (22/11/2016)
2 agreements – Verizon, AT&T = 150Mil addressable smartphones (70% of the US Market)
SYT in a super unique position – OTT video services supported by ads/subscriptions – of particular interest to cable companies
Late Sept – board approved Steve Elfman, Chris **riel, Kevin Packingham to advisory board
End of Oct – launched Freeway in India – 12^th most popular lifestyle app
Published 2 research reports – BYOD
Capital Placement – lots of questions submitted – 160Mil shares @ 3.4c = $5.44Mil - oversubscribed
7Mil in Cash Reserves – was plenty hence the 7Mil Cap Raise cancellation earlier in the year in anticipated revenue streams
2 x recent rather significant US based activities changed course of thinking (Verizon & OTT)
Witnessing in real time the transformation of the US mobile carriers from network operators to content service providers – AT&T thinks of themselves first as an entertainment company
The carriers are saying the ARPU and means of differentiating value for customer retention
Freeway is the ideal platform – SYT asked back by the carriers to assist with the transition
Time to market sensitivity – OTT
We would have said no to these opportunities had we NOT done the raise/placement
70% price drop to wholesale data pricing
Q&A time after 23 minutes
Financial Questions
Q: Why are you not providing any revenue projections and can you give any estimate from SYT in a 12 month period
A: Internal rev projections to guide SYT – not a simple extrapolation – more time on the market required – too hard to provide an exact forecast
Q: When will be the earliest that significant revenue will come in?
A: Laser focussed on execution, executing market plans, planting the seeds today for the network effect that will result in aggressive growth in quarters to come.
Q: When is SYT going to be profitable and can the shareholders expect dividends and if so, when?
A: SYT is entering a high growth stage and all revenues will be used in the company. Accelerated growth is key, especially for Freeway, maintain its first mover advantage, and to kick-start the inherent network effect – the larger the freeway footprint, the more valuable we are to content providers to reach new audiences, which means there are more compelling content offers to entice consumers, means more value to content providers. Examples of other high tech companies – FB = 5 yrs to reach profitability, LI = 4 yrs, EBAY = 8 years, Amazon = 9 years, UBER = 7 years
Instagram $1Bil (30Mil users) – no revenue
Whatsapp $19Bil (400Mil users) – no revenue
Q: With the new CR and your current Capital, how long will the cash last?
A: With placement cash, we can capture existing and upcoming opportunities in our sales pipeline, but more importantly do it in an efficient time to market fashion, which will get us this revenue ramp up with the network effects. The recent CR highlighted, there are unforeseen large magnitude opportunities with short time windows that might require re-evaluation of our cash reserves in relation to our revenue forecasts.
Q: Would SYT consolidate with another business – are they going to be open to such an offer?
A: If the right opportunity arises, consistent with our goals, growing value for our company & shareholders, we’ll evaluate it.
Q: How do you justify the Market Valuation?
A: We see the company being a high growth stock with great potential. The pipeline is there with real growth. Ultimately though, the market value is not driven by SYT, all we do is focus on commercializing the technology as quickly and effectively as possible and let the market decide.
Q: Revenue generated from previous so far?
A: All revenue to date has come from Freeway – our dataflex product is still in trial – goal of broad commercialization in 2017
Q: SYT does not charge the users like mobile phone users – Is it possible to make substantial profit from advertising?
A: There are a couple of companies like Facebook and Google – pretty successful – mobile advertising is $100Billion and expected to double in 3 years – SYT is tapping into this market – SYT next gen mobile advertising
Operational Questions
Q: When will freeway be available on Apple iOS phones?
A: Close to completion – been in works for a while – by End of this Year (subject to Apple approval – this qtr) – shared the private version to several partners for evaluation
AA: Early to mid 2017 = OTT Video Product (not Freeway Apple iOS)
Q: Will we be launching on Verizon this quarter (before Dec 2016)?
A: We will be launching Verizon this qtr – the value in the US is the video service –H1 2017
Q: While Kevin is doing a fine job, responding to 1 & 2 star reviews, which have come through in the past week or 2, I am curious about how many staffers are monitoring the reviews and whether the review responses can be personalised a little more – would there be an opportunity to personalise the responses coming through in relation to more specific reviews?
A: Great question - We take customer queries very seriously – in fact it’s ingrained in SYT culture – we are all about customer success – we don’t separate the operations team and development teams, every member is responsible for operation & customer satisfaction – we look after every customer and respond as appropriate – you may have seen some responses that look the same, but that typically happens when the user hasn’t given us enough info and we need to seek more information. You’ll see us respond to emails and more in the future.
Q: Couldn’t a big telco create the same apps that you’ve developed?
A: Every time somebody says dataflex and freeway are apps, I take ? - they are far more than just apps – they are the full blown end to end solution powered by the same underlying connected services platform. What we have done as a company, spent of the last few years developing a robust carrier grade scalable network, complete with tools for managing our operations and usage of sites, in addition to the apps, freeway & dataflex experience to the user. When you see freeway there is a whole engine running behind it and very wide and compelling, ranging from the offers, content providers and consumers. As far as the mobile carriers are concerned, they have never really been known to develop customer facing software solutions. I’ve seen them do 3 things well – customer support mostly, ? corporates & billing. In some operations they have tried to develop in house sponsored data solutions, which is great, Verizon & AT&T have tried to do that as well, but their solution was very network centric and requires significant modifications to existing applications of back end servers to accommodate what we even use as a solution and I wouldn’t expect any more from these carriers, so as a desire to end this friction, most of these operators developments have clearly not succeeded. On the other hand, SYT have developed a consumer friendly content first platform, which requires no change to existing applications and eliminates all friction for adoption, which means zero changes for application developers if they want to participate in sponsored data. I would say the other key value we have that cannot be approached by a mobile carrier, is that we are cross carrier. There is actual aversion by the app developers to adapt their products to a single carrier and their product is not scalable. They would have 1 API, and second API and a third API, it’s very hard to explain to their user base. Instead what we offer is you integrate freeway once, and you get access to the growing carriers that freeway supports without requiring any updates to their app in the future. It's future ready. That’s a huge differentiation. As far as dataflex and mobile split billing goes, carriers have been dabbling but really cannot compete in this space because a successful BYOD solution in a workspace, is literally bring your own carrier. Therefore we need to support all the carriers, and not just a single carrier; so again, we really don’t see carriers getting into the BYOD space. (Gary – we see a carrier as a partner than competitor in both our products)
Q: Download Numbers: You’ve been around for more than 2 years, why are your download numbers low?
A: Let me tackle dataflex first – intentionally delaying the full launch waiting on iOS – android versions don’t have the feature parity, since the majority of BYOD users are iphone users, we wanted to be market ready before we started the sales side. We are ramping up the sales side ready for sales next year. I would say our download numbers have exceeded our expectations.
Q: CSP question – explain what is CSP?
A: Connected Services Platform – back end platform that integrates with the carriers – application management, user management, analytics, data credits etc.
Q: Has there been a delay with Tata? Change in sentiment?
A: No change in sentiment, perpetual from annual, actively paying SYT, multiple visits to Tata etc, multiple phone calls per day/week
Q: What regions are we looking to replicate the Tata White label deals? Who else could use our CSP platform?
A: Every carrier in the world! We have done it so it’s very easy for a carrier to link up in a week.
Q: With the change in focus (not sure if there is) into more developed markets, like US, is this an added bonus for SYT or has our initial markets in SEA & LATAM been reduced?
A: Emerging in the US – 70% reduction in data charges, Verizon deal etc.
Q: When will freeway be launching in LATAM?
A: LATAM is like asking when is freeway launching in SEA. There are multiple locations, we are currently evaluating integrators to help build out – CSP integration in central south Our goal for 2017 is going to be very busy. You’ll start seeing launches in 2017.
CR/Placement questions
Q: Raised money twice in 5 months. Why are you raising money again so soon after the ASX listing? Have you overspent?
A: No, no, far from overspent. In our recent Qtr, we noted a pretty lean operational expense of $860000 in last qtr and $2.7Mil left over. As we’ve been discussing throughout the pres, we raised these funds to capture very aggressively, 2 very time sensitive opportunities that only very recently emerged in the last couple of months or so here in the US. That OTT that we talked about will work in other markets like Australia for video streaming and will impact each users mobile plan and other carriers are looking for different high margin revenue streams.
Q: How is the white label Tata progressing?
A: Advanced revenue from Tata, reduced size of Cap Raise (7 Mil), strengthened our SEA deployments.
Q: Revenue from Tata?
A: Ongoing revenue from Tata – revenue share - every piece of data the traverses the CSP
Q: Verizon – contract – surely the CR wasn’t necessary?
A: We’ve been chatting with Verizon for years – unsuccessfully – they were building their own in house solution – AT&T accelerated the partnership with Verizon.
Q: Would you have raised this $5M if you hadn’t signed the contract with Verizon?
A: If it wasn’t for the recent large, time urgent and really unexpected opportunities with Verizon with OTT Video services, we would have sufficient cash to reach our revenue ramp up goals.
Q: How long would the money last you for – are you fully funded for the next 2 years (YEP) – or do we need to expect more capital raising when you sign another big contract? (Nope) Will the capital raising be enough to get scalability? (Yep)
A: The intention is this really does give us the scalability and reasonable cash flow to get to that revenue ramp up that we need. Based on the contracts we have now we believe we can drive scalability. That said, if there are other opportunities to drive the company faster, we will carefully evaluate as they arise.
Q: What exactly do you need the money for? Sales/Tech staff?
A: All of the above - Engineering, Sales, Marketing, really growing out 2 new teams, focussed here in the US with the 2 surfaces with Verizon and OTT video.
Q: This came up a number of times in questions – we have no infrastructure costs – there is no hardware – we’re pure cloud based surface – purchase network on demand – unlimited infrastructure resources at our disposal with $0 up front costs.
Q: Are you raising money now for the 2 new board directors?
A: Remuneration based – shares – no cash fee.
Misc questions
Q: Are Netflix, Hulu, ESPN on board as content providers to freeway?
A: We announced our intention to launch an OTT video service, last month, this was wholly based on the 70% reduction, this is not yet available. We are building it out, but it was a prototype and illustrative of what we want to do. I hope it’s generated the excitement that we internally have about the opportunity.
Q: You talk a lot about the 70% reduction – please clarify?
A: It’s slightly more than 70% reduction in our wholesale data rates in comparison to our previous agreements we’ve signed with AT&T in 2015. I don’t know what the prevailing MVNO rates are but I’m confident what we’ve received from AT&T is lower, because we’re not selling data plans, which an MVNO is, in some respects could be cannibalistic to our carrier’s retail business.
Q: What are your visions for SYT for the future? Are there new developments on the drawing board?
A: Oh man, our drawing board is packed right now – but just to be clear, there looks to be a lot going on, and there is, but our vision since inception has been single minded – namely to transform the access model with the mobile internet which is one based on content. There is no difference in how you experience this content on your TV, but we’ve just extended this model to mobile. It’s interesting timing right now, we’re really in the fourth wave of telecommunications innovation – voice first wave, SMS second, Data third, FOURTH = content services – which is game changing. It’s happening now, the flattening of the carrier ARPU, and SYT technology is at the absolutely right place, at the absolutely right time, to offer carriers this differentiation and the new revenue streams to grow. The fluidity of high tech means we need to be agile and open to change, and our drawing board is super filled with ideas awaiting the right time, business climate, for pursuit, but our vision has and will be unchanged.
Chad

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once this was my favorite post. Was at 4.1c end sky was the limit. Now at 0.5c end mgt is not willing to answer the questions from worried shareholders. The only reason to refuse answering sh questions is they simply dont
know the answer or the syt road would end today with the correct answers IMO
SYT Price at posting: 0.5¢ Sentiment: Sell Disclosure: Held
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