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#Bull Case
stale
Added 6 months ago

Working in a safe enviroment is a legal requirement of all businesses. Vault Intelligence's software streamlines and simplifies this process via SaaS products to help businesses:

  • Manage environmental, health & safety (EHS) risks and meet regulatory requirements via the Vault 3 enterprise platform.
  • Protect and remotely manage employees via the recently developed Volt Solo product suite (Enterprise, Lone Worker and Drive), accessible via an app or Samsung's wearable tech.

Why I like VLT:

1. Dominates a niche & has a global focus

VLT is the only provider of Risk and Safety Management Software listed in Aus. The software currently across 8 countries in 30+ industries with 400+ high profile enterprise customers. Wide application to multiple industries & markets reduces risk.

2. Sticky product with a customer retention of ~96%.

Enterprise customers save up to 35% on their insurance premiums by implementing VLT, which drives immediate ROI. Additionally there is a ~40% reduction in employee absenteeism.

3. Strong sales momentum and entry into new markets 

Across FY19, VLT delivered 82% CARR growth to $6.2m & has a FY20 target CARR of $10m. VLT has also entered the US & Singapore markets recently, enabling a soft launch expansion for future growth.

4. Solo product suite has been validated

Integration of wearable tech and IoT is a $25.6b TAM. In the last 4 months, VLT has sold $1.8M of new CARR for the Solo product suite.

5.  27% insider ownership

Management has skin in the game.

 

 

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#ASX Announcements
Added 4 months ago

Vault Executes Multi-Million Dollar Contract with SurePlan For SoloDrive

This announcement is a gamechanger, here's why:

  • Total Contract Value (TCV) is $12.4m over 5 years, and delivers a minimum of $2.49m CARR. 
  • This contract means VLT has exceeded the FY20 CARR target of $10m, with current FY20 CARR now sitting at $11m.
  • It's the second successive multi-million dollar SOLO deal in the last four weeks, further validating the IoT & wearable tech TAM of ~$25b.
  • It is indicative of strong qualified pipeline and shortening sales cycle.

Updated guidance expected in the next quarterly report.

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#ASX Announcements
Added 5 months ago

VLT secured a five year, multi-million dollar SOLO contract with ADT Security, further validating the product and its application to multiple industries. 

Contract is worth a minimum of $6.8m over 5 years, with a minimum of $1.36m CARR.

Closing Q1, CARR already stands at $8.3m, and is on track to meet end of FY20 market guidance of $10m.

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#Bear Case
Added 3 months ago

Things may not be as rosy as the hype suggests:

1) CFO resigns after only 9 months on the job, and with no notice.   The announcement says he left to take up a position elsewhere, but his linkedin account has not been updated, and it is usual to provide at least 4 weeks notice to enable a smooth transition.   

2) VLT engages RAAS to right up an "independant" analyst report.   

3) There are questions surrounding the CARR values reported, which seem to differ from ARR as reported by Vault on November 29, 2019.   Will the CARR ever materialise?  It depends on what "contracted" really means.  

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#Bear Case
Last edited 4 months ago

VLT is using shareholder capital to fund analyst reports. Raas (Research As A Service) Advisory - that is their name I kid you not. 

I don't see a smart watch app as much of a competitve advantage.

This is promotional / stock pumping approch by management is a big red flag for me.   

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#Industry/competitors
stale
Added 7 months ago

The OH & S software space is quite crowded, and fragmented. 

The Environment, Health and Safety software space is currently going through a transition to the cloud, with Verdantix estimating the TAM to be $1.2 Billion in 2019, and growing at an annual rate of 9.2% pa, and is forecast to reach $2.4 billion by 2024.   NICE TAILWIND. 

Intelex is the biggest player, and has revenue of $100 - 200 M in annual revenue (hard to nail this number down), with 10-15 % market share.  Intelex was acquired by a large US conglomerate, Fortive, in July 2019.  There are approximately 15-20 competitors in this space, but they are generally focused on USA and Europe.   The exception is SAI Global, which was brought out by Barings in 2016, and who were founded in Australia. 

My thoughts are:  1) there is no dominant player.  2) The leaders are focused on USA / Europe  3) The largest competitor has recently been brought out, and may lose focus. 

Vault Intelligence is only a small player at the moment.  But it does have a laser focus on this market, as opposed to some of its competitors, that appear to have a variety of products / services.   It will be beneficial to monitor Verdantix 's industry reviews, and rating of the business service offiering. 

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#Bull Case
Added 5 months ago

Building momentum in sales or distribution partnerships recently.

Taken with a grain of salt (as they appear on VLTs website)  the numerous positive testimonials / case studies) seem to depict users are happy with the product.   

Also of note is the wide range of industries/ sectors of VLTs client base.  This gives confidence in VLTs ability to better deal to changes in business cycle as its customers follow different cycles of growth/stress.

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#VTG Association - Very Positiv
Last edited 6 months ago

Todays announceement of an association with Vita Group (VTG) cannot be over stated.

As Telstra's largest distributor with over 100 shopfronts, they are an extremely strong selling machine...if the margin makes it worth their while. Only rserevation: VTG are mainly regional based and that may not necessarily be where the VLT end customer resides (en masse at any rate). This should all but guarantee the $10m FY20 CARR.

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#Bull Case
stale
Added 8 months ago

Vault Intelligence is an SaaS business, which essentially creates solutions to manage risk, health and safety responsibilities. After trading sideways for most of the year the SP really started seeing some traction in July after announcing a contract extension with StateCover Mutual and then reporting record growth for Q4 (details here:  https://www.asx.com.au/asxpdf/20190729/pdf/446yhbz4xd2k2p.pdf). This has helped push the SP up 52.4% in 30 days and with lots of room to grow (future earnings growth of over 100% predicted). Although still loss making they have virtually no debt and I think one for the watch list. 

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#SaaS
stale
Added 9 months ago

A multiple cheap,

for all the Sassy peeps,

but a somewhat patchy track record,

stikes a note slightly off-chord.

 

 

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