Featured

Infobird: A Rare, Undervalued, Profitable SaaS Gem Forecasting 50% Revenue Growth for 2021

Cloud computing as a domain is known to command the highest valuation in today’s times. It is very difficult to find stocks with cloud-oriented business models especially within the software-as-a-service (SaaS) space that are available for a reasonable price. Our small cap pick for the day is a cloud player that was recently listed in April 2021 and happens to be trading at a very cheap valuation, even below its IPO price – Infobird Co., Ltd (NASDAQ: IFBD). The Chinese company completed its IPO in April of this year, and has gone on to win 2 major clients in the footwear and beauty cosmetics retail markets as it diversifies from its roots as a SaaS provider to the financial industry.  This diversification strategy coupled with the opportunity to acquire other synergistic SaaS companies is far from being factored into its current valuation. This strategy, together with the expectation from the Company that revenues for fiscal 2021, ending December 31st, 2021, will be between $22 million and $25 million, an expected growth rate of more than 50% is why the company looks to be a very compelling investment proposition.

Company Overview

Infobird Co., Ltd, headquartered in Beijing, China is a well-known software-as-a-service (SaaS) provider of artificial intelligence (AI) enabled customer engagement solutions in the Chinese market. Founded in 2001, the company started off within the call centre domain and gradually grew to become a full-fledged tech solutions provider for customized customer engagement management through its cloud-based services, such as SaaS, and business process outsourcing services. It also offers a strong cloud-based sales force management software solution which helps enterprise clients carry out the inspection, monitoring, and benchmarking of sales employees and agents to improve productivity. The initial focus of Infobird was the financial services industry but it has gradually expanded to other sectors like education, public services, healthcare, and consumer goods.

Recently, Infobird issued two press releases announcing that it was awarded two new client assignments with large and well-known customers in the retail industry, a clear signal that the company is successfully executing its strategy of entering this new large and growing industry sector. 

The SaSa Cosmetics Deal

Infobird had a relatively slow 2020, undoubtably negatively impacted by the Pandemic, but has started off with 2021 on a very positive note. In its press release from last week, the management announced that it had entered into an agreement with SaSa Cosmetics (China) Co., Ltd., to provide a wide array of services in the marketing and customer service domains. It is worth highlighting that SaSa is a large beauty retail chain in China with over 300 physical retail stores and counters spread across Asia and the ability to offer nearly 1,000 brands. With increased footfalls in SaSa outlets, the company needs to provide an improved customer experience and better efficiency at store level. For this purpose, Infobird’s software solutions are expected to upgrade the store management and operations and also help the company’s sales staff work more efficiently and productively. Notably, this was Infobird’s first big transaction within the consumer retail space in 2021 and is expected to pave the way for many more such deals in the future.

A Breakthrough in China’s Shoe Manufacturing Sector

The Infobird management announced a tie-up with Zu Li Jian, a leading shoe company in China catering to the large market of the elderly and geriatric population. Infobird’s digital customer engagement solutions are now going to be used by Zu Li Jian in order to support customer service improvements as well as help the management with better decision making. Zu Li Jian is growing its business rapidly and is catering to an addressable market of more than 260 million people in China aged over 60 years and looking for high-quality footwear to promote a healthy lifestyle. In its quest for growth, the company requires a reliable technology partner like Infobird that can help ensure a seamless digital transformation particularly in the customer support aspect and help upgrade the overall customer experience for its clients. This is Infobird’s second major deal within the consumer goods space in 2021 and it is growing its clientele at a rapid pace which is a major green light for prospective investors.

Final thoughts

As we can see in the above chart, Infobird had a stellar listing. Its IPO was priced at $4 per share and the stock was listed around $7 but the company’s share price has not really recovered from the initial sell-off that took place. One possible factor influencing the sell-off was the fact that the company’s revenues fell by about 20% in 2020 given the impact of the Covid-19 and probably customer delays in implementation. However, with these 2 major deals announced by the management within a span of 10 days, the message is crystal clear – Infobird is aiming for the sky and is not expected to slow down its growth initiatives. The company is currently trading at a price-to-sales multiple of around 6.7x which is among the lowest in the SaaS industry and the cloud-based service providers and this is after taking into account the tapered down, Covid-affected revenues of 2020. The valuation is even lower if we assume the pre-Covid levels which the company should comfortably reach in 2021. To conclude, we believe that Infobird looks like a wonderfully undervalued, profitable SaaS stock and should ideally be grabbed by tech investors while it is cheap.

Disclaimer

No Positions.

Disclaimer

This website is a wholly owned subsidiary of Salesparq, LLC, herein referred to as Salesparq, LLC. Our publications are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. We may receive compensation for this article on a PPC basis as an affiliate. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.PLEASE NOTE WELL: Salesparq, LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.Release of Liability: Through use of this website viewing or using you agree to hold Salesparq, LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Salesparq, LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and Salesparq, LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provided herein. Instead Salesparq, LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. Salesparq, LLC is compliant with the Can Spam Act of 2003. Salesparq, LLC does not offer such advice or analysis, and Salesparq, LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries and extremely high degree of risk. It is possible that an investors investment may be lost or impaired due to the speculative nature of the companies profiled. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be forward looking statements. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as projects, foresee, expects, will, anticipates, estimates, believes, understands, or that by statements indicating certain actions & quote; may, could, or might occur. Understand there is no guarantee past performance will be indicative of future results.In preparing this publication, Salesparq, LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. Salesparq, LLC has not been compensated for this article. The advertisements in this website are believed to be reliable, however, Salesparq, LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. Salesparq, LLC is not responsible for any claims made by the companies advertised herein, nor is Salesparq, LLC responsible for any other promotional firm, its program or its structure. Salesparq, LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA.
Show More

Related Articles

Back to top button