TEUM: organic growth seems impressive, and if they can merge the acquisitions effectively, they might do ok.
"Pareteum has exceeded our prior guidance for revenue achieving a 101% organic growth over 2017, and including Artilium growth of 139% on a year-over-year basis.
In January 2018, Pareteum global software communications cloud platform product segment that’s amount for represented 4% of our total monthly billed revenues. At the end of January 2019, this very same product represented 51% of our total monthly billed revenue that’s a 12x increase in one-year and proves the attractiveness of our cloud platform."
New contracts appear to be rolling in:
ten new customers have executed three-year contracts during early March 2019, valued at $17 million in the company’s expanding 36-month contractual revenue backlog (36MCRB). These new customer transactions span Europe, Africa, US and Asia, and include software communications platform service offerings from the company’s recent acquisitions of iPass and Artilium.
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Teum, took a starter position at 4.75 and added at 5.00. Good buyout candidate methinks…on the other hand twilloesque perhaps? 1.5% of port, its a fair bet.
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I agree guys and I have a 1% holding with the intention to bump this up more. Bought in at 3.56 and again at 3.98 so I’m up 50% overall now.
The organic growth is huge (>100%).
The acquisition opportunity for cost synergies and the expanded complimentary platform value proposition is huge.
They have $800m in 3 year back log that they convert 100% of. (Their back log > their market cap.)
They had $675m back log at year end which pre-dates the latest acquisition.
They added a new $17m in 2 weeks in March that is additional to the existing and any acquired back log.
Their sales leadership is ex Twilio.
They anticipate being cash flow and Ebitda + by mid year.
They are in the CaaS sweetspot and about to get a tow with 5G and have a carrier and IoT focus that complements the cloud focus of Twilio.
There is a true underlying organic story
There is a successful acquisition play in action
There is to a degree a roll up story which could have a network effect meaning - greater coverage of carriers, across more medium and more connected devices - an interesting measure that I don’t see Twilio using
…at $600m market cap growing over 100% and $800m in backlog I see good risk reward here.
Ant
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