Dropsuite Limited

ASX:DSE

Dropsuite Limited

ASX:DSE
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Reports (7) My Report Forum Investors
Forum Topics DSE DSE New Product
mushroompanda
Added 2 years ago

During the Q3 conference call, Charif mentioned that they've launched a new product very recently in close beta with a few customers. A proper announcement will come either in Nov 2022 or Jan 2023.

*spoiler alert*

It's probably a backup service for QuickBooks Online. I found the following page trawling Dropsuite's sitemap.xml as one does.

e6f7fd445f490f87a8b4d61d2b900645ecdd33.png

Source: https://dropsuite.com/products/quickbooks/

Intuit's QuickBooks is America's Xero. Intuit is a US$110B+ behemoth. There is a really good Business Breakdown podcast episode about the company: https://overcast.fm/+rra5Psd80.

The service description and its copy writing appears very similar to a product offered by Rewind Software: https://rewind.com/products/backups/quickbooks-online/. Rewind is a VC-backed backup software company. It has raised around US$80m since its inception in 2015 and has an estimated valuation of US$260-390m (dealroom.co).

Rewind charges US$14/file/month (https://rewind.com/pricing-backups/). Not exactly sure what a QuickBooks "file" is, and whether you'd typically keep a file for each legal entity you need to do the accounts for.

Immediately my mind wonders to the size of the opportunity to cross-sell to the current user base. Assuming a whole bunch of things (lots of room for error): 886k users, 20 people average organisation size, 1 Quickbooks "file" per organisation, charge US$8/file/month to backup... 886,000 / 20 x 8 x 12 = US$4.25m cross-sell opportunity perhaps maybe?

Interested in hearing what others think about this. Any insights on Quickbooks and what a "file" is would also be much appreciated!


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Solvetheriddle
Added 2 years ago

@mushroompanda very intersting well done. do you think an acquisiiotn is coming? CEO seemed to give a few hints

8
mushroompanda
Added 2 years ago

@Solvetheriddle They've been on the hunt since raising capital in Feb 2020. But agree, it sounds like they're closer now than they have been previously.

10
jayjayjayjay
Added 2 years ago

@mushroompanda that’s well picked up. Nice work. Can’t really add much to it my main question would this be sold through a MSP or sold directly by Dropsuite as a product therefore leading to improved margins?

also has DSE been picked up by Intuit to run this program or have DSE just identified a need for this product in this segment and created a solution themselves?

big space for growth if they can make ground in it.

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mushroompanda
Added 2 years ago

@jayjayjayjay I can only take a guess on both questions.

  1. Will be through MSPs. I can't see why they'd choose against leveraging a model that was worked so well for them. Part of the company strategy has been to sell new products and services through their existing MSP partnerships and increase APRU over time.
  2. Likely DSE identified the need by speaking with partners and end customers. Intuit, Microsoft (Office365) or Google (Google Workspace) are unlikely to have any links with backup services and would rather spend the energy touting SLA stats - resilience and durability.

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