Wishpond Technologies Ltd was listed as “flagship stock of the month” in the Desjardins report; says “growth looks impressive”
Desjardins indicated that Wishpond is a fast growing services and software-based marketing technology company with annual recurring revenues of $ 15 million.
Wishpond Technologies Ltd indicated that it was listed in the Desjardins Monthly Diversified Digest as “flagship stock of the month,” also noting that it had been added to Desjardins’ small-cap watchlist.
Desjardins said Wishpond is a fast-growing software-as-a-service (SaaS-based) marketing technology company with annual recurring revenues of $ 15 million.
READ: Wishpond Technologies Set to Drive Organic Revenue Growth, Beacon Securities Analysts Say
Serving small and medium-sized enterprises (SMEs), Wishpond has defined a multi-faceted growth plan focused on investing in sales, developing new products; and accretive mergers and acquisitions. Wishpond closed three transactions in 2021: Invigo Media, PersistIQ and Brax.io.
“While Wishpond’s SME base, defined as customers with 5 to 20 employees, is diverse across a number of categories, the company’s solutions resonate particularly well with e-commerce and service merchants,” Desjardins analysts said.
“When it comes to e-commerce or direct-to-consumer (D2C) customers, Wishpond has seen notable growth accelerated by the pandemic, so the category now accounts for 25% of the company mix; Business-to-business (B2B) is the second category of business with 24%.
The digital services company provides a suite of tools, helping SMBs drive profitable marketing campaigns along the consumer journey, falling into three broad categories: Capture, Nurture, and Convert.
Although Wishpond went public in December 2020, analysts added that the company has over 10 years of experience reflecting a few strategic pivots, multiple product launches and strong organic revenue growth trends, while also demonstrating its ability to be profitable in terms of EBITDA.
The research group also said the Wishpond can also be scalable to support large businesses, including Lululemon, Walmart, ESPN, and CBS (NYSE: CBS).
Currently, Wishpond is working on the development of a payment service, marketing funnels, an outbound sales solution by PersistIQ and an appointment booking platform by Invigo.
Financially, the company’s revenue increased by 30% to reach C $ 7.9 million (m) in 2020, with consecutive quarters of progressively higher results (C $ 1.67 million, 1, 87 million Canadian dollars, 2.10 million Canadian dollars and 2.25 million Canadian dollars from the first quarter of 2020 to 4Q20).
Analysts reported that while the company benefited from the positive impact of the currency exchange, the main driver of growth over the past two years has been the need for SMEs, especially physical businesses, to be relevant to consumers during shutdowns through consistent marketing. on all channels.
“In our opinion, the growth looks impressive as it likely reflects the high levels of churn characteristic of the SME trader (one in four business failures each year), suggesting a rapid pace of gross merchant additions and / or stakes. at plan level of existing merchants, ”Desjardins analysts said.
“Revenue growth through 2021 has been strong, in the order of 70%, taking into account mergers and acquisitions (Invigo and PersistIQ), although management has reported organic gains closer to 35%. The company also noted that US revenue growth in 2Q21 was around 100% year-over-year. “
Wishpond is a Vancouver, British Columbia-based company specializing in providing marketing-focused online business solutions.
Wishpond works with over 30 software integration tools, providing a wide range of services such as marketing campaigns, email marketing, payments, analytics, and customer management portal.
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