In the company’s update that was issued on Wednesday (February 1st), there were several positive developments noted that nudged our curiosity and prompted a conversation with management. Most certainly, this is not “inside” information, but it does provide somewhat more dimension as to the progress being made at TRAKOPOLIS.
The news release stated that four new salespeople had joined the team, two in Canada and one each in Texas and Pennsylvania. When it comes to Canada, one is in Ottawa and the other is in Atlantic Canada with the principle responsibility of supporting the company’s partnership with Bell Mobility and the new “Electronic Log Book” offering. Management is providing additional resources to this sales push because of its belief in the size of the prize. The release stated that this is the “first phase” of its growth expansion as it is adding more boots on the ground to its existing sales team.
On the U.S. side, the people now located in Texas and Pennsylvania are there to add weight to the launch of an offering that sees Honeywell’s new Wi-Fi enabled gas detector incorporating TRAKOPOLIS’ software technologies. Even as written in the recent report from Canaccord that placed TRAKOPOLIS on the firm’s Watch List, “the addressable market for this type of offering in North America alone could be 150 thousand units”. It’s very understandable why TRAK management is “enthused” in context of the market opportunity and the partnering with Honeywell that has the potential to greatly accelerate growth in the company’s recurring revenue stream.
The news release also stated that 1036 new devices (subscribers) were added through December and January representing 51 customers. Remembering that in the last corporate presentation TRAK had a subscriber base numbering eleven thousand, a nine percent increase to that base over the course of two months, especially as it was the holiday season, at least deserves an “attaboy.” Of the 51 customers mentioned, 25 were new names representing different verticals such as energy, mining, transportation, etc.
Management says that revenue will be recognized as hardware is shipped, installed and activated, which is ongoing.
As we were about to end the phone conversation, management adeptly reminded us that this growth came on the heels of all the work required to complete the public listing in November, the four new salespeople were in training and not yet selling and the new product offerings played no role in the recent wins.
The first big target for TRAK is reaching 25 thousand subscribers and 500 customers, which management forecasts puts the company on a $10+ million annualized run rate.
To view news release, please click here.