China has long been a perplexing situation for investors as the market struggles to assess the changing dynamic between the business and political world. Despite this, The Peoples Republic of China offers incredible opportunity for investors as the country has one of the largest and fastest-growing economies in the world. Their population is immense, giving retail, financial, consumer goods, and other customer-centric businesses massive room for further growth. And with this growth, comes the increased need for these businesses to properly interact and communicate with their customers. As well, the Chinese government has recently signaled the end of some of the regulatory pressure that has negatively impacted big tech valuations, meaning now may be the perfect opportunity to find high-quality companies for a discount.
Infobird (IFBD) is a company we have covered in the past, who operates under a SaaS model, providing their users with AI enabled customer engagement solutions. Recently, Infobird released multiple positive news stories, showing investors their dedication to expanding their customer base and continuing to improve their service offerings to existing customers. The company is well on track to have their best year yet, and with China preparing to put the global pandemic behind them, this could very well be a blow-out year for Infobird, past what even the management team expects.
To articulate to investors the potential this company has moving forward, below we outlined the major milestones and advancements the company is making in 2022.
Infobird Prepares for Record Breaking Top-line Growth
As a quick refresher, Infobird, as a customer engagement specialist, offers its services to other businesses. The company integrates their proprietary software and AI powered algorithms to support their customers through intelligent telemarketing services, cloud-based call centers, omni-channel customer service support, AI voice/text chatbots, intelligent quality inspections, intelligent interactive training, and much more. Infobird recently released their preliminary revenue guidance for 2022 of $16 million. And considering the companies entire market cap sits at only $19 million, Infobird will be drastically undervalued should they execute on their expectations.
This expectation in revenue comes from Infobird’s strategic transition from specialized SaaS services to more standard ones. By doing this the company will be able to support a larger user base in the small to medium sized business sector, as well as still support their larger customers in standardized ways. More specifically, by extending their standardized products Infobird intends to target the finance, retail, healthcare, and EV industries who rely on simple to use customer engagement products to effectively communicate with customers and grow their business.
And truthfully, this strategy has already shown to be effective, as Infobird has welcomed several notable fast-growing customers to their clientele including cosmetics company SaSa, a leading shoe manufacturer and retailer Zulijian, the innovative EV company HYCAN, and others. All these customers have begun to rely on Infobird for their digital marketing, cloud-based call center service, and customer service functionality.
Infobird has an incredible ability to understand what customers want and then create a tangible cost-effective software solution. This strategy has allowed the company to become a prominent player in the customer engagement market and is also what continues to drive this company’s top line revenue growth.
Further Expanding their Service Offerings
Infobird also recently acquired (through a 51% equity interest) Qishuo, a dynamic SaaS provider of big data analysis who aims to improve the operations management of physical stores. Qishuo currently specializes in the clothing and footwear space, however their product, technology and operational expertise can be applied to other industries overtime.
This acquisition pairs perfectly with Infobird’s current customer base and further strengthens the companies SaaS focused eco-system. Together with Qishuo’s product, Infobird can provide a comprehensive online and offline customer engagement solution. This empowers the retail customers to improve the operations of their business models. As well, this addition in functionality to Infobird’s portfolio of offerings further strengthens the companies moat and raises switching costs for current customers.
A Brief Look Ahead
Infobird has set themselves an impressive list of goals to accomplish throughout 2022. With a focus on growing within the industries they already serve, expanding into new ones, and further improving upon the functionality and service offerings they provide to customers. And already, before Q1 of 2022 is over, Infobird is well on track to accomplish these goals which will undoubtably allow the company to realize a record breaking $16 million in revenue this year.
Yimin Wu, Chief Executive Officer and Chairman of Infobird commented on the companies 2022 prospects saying “We have found enormous opportunities in the customer engagement market in China and the interest in our SaaS service is accelerating across many verticals. In conjunction with our valued customers, we believe we have developed a clear strategic vision and solution that empowers them to transform their customer engagement strategy. Our goal is to provide real business value-driven solutions deploying industry-specific upgradeable modules to our clients. 2021 was an important year to build our foundation both in terms of potential client base and the organization for accelerated growth. With these valuable foundations, we are excited with 2022 and the years ahead.
Key Takeaway
Infobird possesses many of the attributes that are so common in extremely successful companies. Their business operates through a SaaS model which offers incredible and consistent cash flow monthly. The management team understands the needs of their customers and works to create original products offerings to better support its users. The company makes strategic acquisitions that will help fuel further growth and has set themselves clear goals to execute on in the coming year. All this leads to a company well equipped to manage any short-term challenges as they keep the focus on the success of their customers. This strategy has a long history of rewarding shareholders, and now, especially with Infobird trading at a stark discount, is a perfect time for investors to place the company on their watchlists.
Infobird expects to file its 20-F for the year ended December 31, 2021, prior to April 30th of this year. We also take encouragement from the fact that the company held its first conference call March 15th for shareholders to review their 2022 preliminary revenue guidance and discuss strategic priorities going forward. It’s definitly worth a listen. You can access the recording via the following link:
https://www.webcaster4.com/Webcast/Page/2850/44804
All signs point to the company having a stellar year as they continue to execute on an already impressive growth story.