SmallCapPower
Box Score
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The Ubika Research Tech Stock Watchlist
| Call Genie Inc. (TSX:GNE) |
| Company Name: |
Call-Genie Inc. |
| HQ Location: |
Toronto, Ontario |
| Company Website: |
www.callgenie.com
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| Shares Outstanding |
82.88Million |
| Market Cap: |
$15.3 Million |
| 52 Week Range |
$0.06-$0.35 |
| Average Daily Volume |
40,000 |
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Share Highlight / 1-Year Stock Chart
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Business Overview
Call Genie is a leading global provider of local mobile search and advertising solutions that connect ready to transact consumers directly with local merchants for local directory businesses, directory assistance services and local media publishers. Call Genie solutions offer an exceptional experience for both advertisers and consumers and are deployed in 11 countries around the world. Call Genie has been awarded the Excellence in Integrated Ad Management award by the Pelorus Group, has won the Yellow Page Association Industry Excellence Award for Marketing Innovation, the Whitaker Innovation Award, the 118 Tracker Award for both Technology Innovation in the UK and most recently, Outstanding Contribution to the Industry. As consumers migrate towards smartphones and use the phone to make local search, entertainment and commerce, there are opportunities for wireless carriers and content providers like yellow pages to introduce new revenue sources. Call Genie is trying to be one of the enabling vendors for this technology driven advertising markets.
What is interesting?
The following are key investment highlights:
- Call Genie provides turnkey solutions including automated voice, SMS and mobile data tools that enable carriers and content providers like yellow pages to match ready-to-transact mobile search customers with paid advertising from merchants.
- Consumers call directory assistance (411) over 6 billion times a year, searching for local businesses, products and services. This makes aggregated directory assistance the leading local search service in the world. Call Genie’s technology would receive the calls and deliver search results via an automated voice phone response, an SMS text sent to the phone or via live agent on the phone. For example if a consumer using a smartphone is searching for “Italian food”, not only would there be a list of the closest Italian restaurants, but carriers could also offer coupons from local restaurants. This could be a win-win for merchant looking for more traffic, carrier looking for extra revenue and the customer looking for “Italian food” in this example.
- Technology is now commercially deployed. Company have spent a significant amount of funds in R&D (~$50M)
- Customers incude leading carriers like Telus, AT&T, Telecom Egypt, Orange, Verizon.
- Recurring revenue model should see revenue ramp up once it implements the product in an impressive roster of telecom carriers that it has signed up
- Company is expanding the addressable market by entering traditional media market with a major customer win with Endemol/NBC to deploy a local sweepstakes game for "Deal or No Deal" one of the popular game shows. Also have partnership in place to expand into opt-in SMS advertisements with Telecordia a leading vendor in the mobile prepaid systems space.
- Business Model: Company makes revenue on a per transaction basis on revenue share with content provider and carrier every time its technology is used, both for voice and SMS search. Company also earns when it pushes an advertising or listing (mobile advertising). The company also earns fees for implementing technology and work related to customization in its implementation.
- The mobile advertising business can potentially be significant as mobile advertising market is set to witness explosive growth. For example, the US mobile advertising market is expected to grow at a compounded average annual growth rate of 39% for the next four years reaching $1.5 billion by 2013.
Risks
High concentration of sales from a single customer. Company is not profitable yet and needs additional capital until the business becomes profitable (raised some funds recently). Mobile search business is still in its infancy and may not grow as fast as forecasted.
Call-Genie Inc. News
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