STTCOMP 9SP FA LONG9 Spokes - Marketplace and Insights Company...

STTCOMP 9SP FA LONG

9 Spokes - Marketplace and Insights Company to small and medium businesses.

MC: $22.77 Million
SOI: 948 Million.
SP: .024c
Cash: $2.83 Million.

FY19 has been a year of significant change for 9SP. While 9SP's purpose and vision remained the same, they have elected to pursue a strategy aimed at achieving break-even as soon as possible. As such, all operational aspects of the Company were reviewed in order to align costs and resources in the business to achieve this goal. They have demonstrated that they are now in a position to achieve this with success in their Enterprise Channel pipeline.

Performance Highlights:-
• Revenue grew 22% year-on-year, to $8.2 million.
• Expenditure reduced by $7.3 million, a 30% reduction year-on-year.
• Ongoing reduction in quarterly net cash flows.
• Successfully delivered two new Enterprise Channel Platforms to OCBC and Bank of New Zealand
• Commenced a major rebuild of the 9 Spokes platform (V2).
• Re-platformed the platform’s infrastructure resulting in significant services and cost benefits.
• Revised distribution model, including entering into a co-sell arrangement with Microsoft and opening discussions with VISA USA.
• User base almost doubled from 50,000 to 95,000 during the year, since passing 100,000 users.
• Significantly progressed prospects with a new enterprise channel partner in the US (Tier1 US Bank).

9SP strategic priorities:-
1. Demonstrate operational and financial discipline;
2. Launch our next-generation V2 software platform;
3. Strengthen our distribution channels;
4. Secure our entry into the US market.

We can expect to see a number of announcements in coming weeks.

1/ V2 platform launch.
2/ Tier 1 US Bank deal likely as discussions now in final stage. (should see a significant rerate due to massive increased revenue potential).
3/ Further Microsoft co-selling announcements.