As many cloud computing companies have gone public during the last year with positive success, the management of GlobalWise thought it appropriate at this time to update shareholders on the Company’s recent accomplishments, the competitive advantages of its technology, and the successes the Company is having in developing a strong partner/reseller network.
The reasons for “cloud-mania” and the success of recent IPO’s in the cloud industry space are obvious. First and foremost they have the growth metrics that investors like to see in newly listed companies. GlobalWise is no different, enjoying a healthy 52% year-over-year growth rate during the most recently reported quarter, and management anticipates continued and significant growth in the future.
While there certainly are risks, typical of any tech company, there are significant reasons for investors to be optimistic. Gross profit margins tend to be high and as cloud-computing companies scale up to take on more customers, their infrastructure costs don’t rise nearly as quickly as other companies.
Some of the biggest growth in cloud computing is coming from cloud-enabled software service providers like GlobalWise. GlobalWise anticipates turning profitable and cash flow positive in the coming months, unlike many publicly traded companies in its industry space. As the company continues to add to its already impressive client list, investors should be rewarded.
Cloud computing is a hot industry ‘buzz word’. For investors interested in cloud computing, it should be noted that Gartner is predicting that the size of the cloud computing market will reach $150 billion by 2013. IBM Market Insights predicts adoption of cloud computing to grow by 26% CAGR.
GlobalWise is a leading-edge technology company focused on the rapidly growing Enterprise Content Management (ECM) industry, which Gartner predicts will exceed $5.7 billion by 2014 with a compound annual growth rate of 10.1%. Through its cloud-based Intellivue™ ECM product line and unique Channel / OEM distribution model, the Company is well positioned to dominate in the underserved small-to-mid sized business ECM marketplace.
Intellivue™, the Company’s flagship platform, offers substantial savings to any size organization in virtually any industry by offering them immediate, secure access to all of their structured and unstructured (i.e. Word documents, JPEGs, Images, Audio Files, Video Files, Email w/ Attachments, Fax, Hard-copy documents, etc.) corporate information at their desktop or mobile devices (i.e. iPad or iPhone technologies) via the Web. Utilizing this system flexibility, Intellivue™ has seen great success in the target vertical markets by building ‘on-demand’ process solution templates that are pre-configured with 90% ‘best-practice’ for immediate economic and improved operational impact by enabling ‘quicker-time-to-value’ and increased client adoption.
The Company’s ECM service is delivered to customers via five unique delivery models that cover the full spectrum of business needs: Cloud/SaaS (Software as a Service); Hardware Vendor Integrated Service; Software Vendor Integrated Service; Premise (Client-Server); and Hybrid (Premise & Cloud/SaaS). This diversity provides advanced security and privacy features with an on-demand structure for businesses in the large, underserved small-to-mid sized business markets.
About the Company’s Channel Partners
Each successful channel partner will add to the revenue of the Company without a significant increase in fixed expenses. While revenue from each successful partner will vary from $50,000 to $900,000 annually, the average channel partner is expected to grow annual revenue by $150,000 – $200,000.
GlobalWise added 14 new channel partner agreements throughout 2011 and has already added and trained 8 new channel partners in 2012.
September 6, 2012 – GlobalWise Channel Partner Training Programs Provide Growth Accelerator
By implementing a channel sales model with strategic partners who are already selling software solutions into an established and trusted client base with strategic target markets, the Company is now able to rapidly access a much larger universe of potential clients. The Company anticipates that new channel partnerships will drive triple-digit growth for the next several years.
The most recent channel partner is with one of the Top 50 Office Equipment Dealers in the US.
August 1, 2012 – GlobalWise Announces New Channel Sales Partnership with RJ Young
Since 1955, RJ Young has provided businesses across the Southeast with the highest quality office equipment and innovative document solutions — all backed by award-winning service. Today, RJ Young is the fifth largest independent dealer of its kind and has been recognized by Office Dealer magazine as one of the country’s 50 Best Office Equipment Dealers. RJ Young prides itself in partnering with the best copier and software providers in the world and saw the power of the Intellivue™ cloud-based ECM software from GlobalWise as the perfect complement to their managed print copier services for the small-sized to mid-sized client.
GlobalWise anticipates signing many more of these agreements with domestic as well as international partners during 2012 and early 2013 as it continues to position itself as a leader of the industry. The Company expects to deliver significant and consistent annual revenue and profit growth each year for the foreseeable future as its experienced management team takes advantage of the significant opportunities that currently exist in the marketplace and continues to partner with some of the largest and most successful companies in the industry.
July 26, 2012 – GlobalWise Accepted as Member of Prestigious Organization Technology United
This organization membership creates additional channel partner opportunities.
July 17, 2012 – GlobalWise CEO to Be Featured Speaker at World Expo 2012 Conference
William J. “BJ” Santiago will be a featured speaker and panelist at the esteemed World Expo 2012 Managed Print Summit to be held July 17 – 19 in Las Vegas, the largest Expo for Managed Print Services. The World Expo (www.worldexposhow.com) conference is the premier location for Managed Print Services (MPS) and Imaging industry executives and thought leaders. At the conference, attendees will be able to learn about the latest technology trends in the MPS industry on topics such as Business Management, Document & Print Management, Hardware & Supplies Solutions, Sales and Marketing, and Managed Network Solutions.
The Company is already beginning to see the results of its hard work.
August 14, 2012 – GlobalWise Reports Second Quarter 2012 Financial Results
GlobalWise achieved record growth of 146% over prior quarter and 52% compared to the year ago second quarter. The Company’s gross profit margin increased to 67%. Intellinetics’ cloud-based ECM Software and highly successful channel partner program will become catalysts for unprecedented growth. Gross profit increased and operating expenses decreased.
“Based upon the Company’s current sales funnel and recent Channel Partner activity, GlobalWise currently expects to exceed $3.3 million in annual revenue in 2012 vs. $1.7 million in 2011. Management anticipates exiting 2012 at an annualized revenue run rate for 2013 in excess of $5.0 million, as existing Channel Partners increase their sales and marketing efforts and new Channel Partners are added.”
“GlobalWise will continue to consistently communicate with current and future investors. We look forward to continuously delivering the growth patterns and financial metrics our investors deserve,” stated William J. “BJ” Santiago, CEO of GlobalWise.
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