Updated coverage 8/17/21 8AM Eastern – Infobird (IFBD) is a Growth Oriented SaaS Provider Expanding into New Markets and Enhancing Product Offerings with Artificial Intelligence
Good day everyone,
We are continuing coverage on Infobird Co., Ltd (NASDAQ: IFBD), a software-as-a-service provider of AI-powered or enabled customer engagement solutions in Beijing.
Current price $3.24/share (at market close 8-16-21)
IFBD shares closed the Monday session at $3.28 (+8%) after opening at a gapped $3.15 per share. The trading range was $3.02 to $3.34/share. Price support was strongest in afternoon trading.
Like Cloopen Group Holding (NYSE: RAAS), Zendesk (NYSE: ZEN) and Twilio (NYSE: TWLO) Infobird offers AI-driven telemarketing, omni-channel customer support, intelligent voice/text chatbots and more. But there is a big difference amongst the three companies:
Cloopen – Market value $757M (a PRC company)
Infobird – Market value $75M (a PRC company)
Zendesk – Market value $14B (a USA company)
Twilio – Market value $60B (a USA company)
The three competitors above have an average price to sales ratio of 15.70X. When we apply that same ratio to IFBD based upon 2020 revenues, we come up with a market value of $227M. If we apply that ratio to the company guidance for 2021 revenues of $21.75M, we come up with a market value of $341M.
Those three competitors listed above have one thing in common. None of them generate net profits. IFBD, the up and comer in the sector had a $4M net profit on $14.5M in revenues for FYE 2020. By any of the metrics we apply, IFBD seems to be an oversold value.
Intellectual Property
Infobird has 70 Intellectual Property (“IP”) rights developed under its cloud-native architecture and AI technologies.
Expanded description of the IFBD product offerings:
AI Customer Engagement
Intelligent Omni-Channel Customer Service – This offering allows clients to connect with their customers anytime and anywhere through a comprehensive suite of cloud-based tools.
Cloud Call Center – This service puts Infobird’s years of technical and operational experience to work for clients, with options including intelligent IVR technology, call monitoring, routing strategy and ticketing systems, all supported by multi-dimensional data reports.
Intelligent Telemarketing – Infobird’s AI bots can help clients navigate “never-ending lists” of potential customers, filter out the most promising leads and increase the working efficiency of agents, keeping agents focused on high-value tasks.
AI Voice Chatbot and AI Text Chatbot – This technology allows clients to create human-like interactions offering 24/7 availability and multi-round dialogue capabilities, decreasing labor costs by up to 80% while greatly improving efficiency.
WeChat Call Center – designed to help companies further develop the value of existing customers through automated and personalized solutions for private domain traffic. (NEW)
AI Salesforce Management
Intelligent Quality Inspection – Infobird’s platform aims to improve quality inspection rates and service levels using real-time smart monitoring with comprehensive coverage.
Intelligent Training – Interactive training programs allow clients to ensure and continuously improve the performance level of their agents, lessening the impact of high turnover rates common throughout the customer service industry.
Considerations:
Profitable with operational cash flow
Tiny float
Growing revenues
High growth sector
Huge insider ownership
Shares appear oversold
As IFBD continues to integrate AI into its product offerings, we expect revenues to experience rapid growth and correspondingly increase its market value.
Original report below
Update: News Out Today, Infobird Launches WeChat Call Center, an Intelligent SaaS Product to Capture New Demand and Market Share in the Field of Private Domain Traffic
Good day everyone,
Price action looks good so far as of 12:20 PM EST. Watching for a break of the 50 DMA at $3.55/share this week.
We are initiating coverage on Infobird Co., Ltd, a software-as-a-service provider of AI-powered or enabled customer engagement solutions.
Current price $3.00/share
When we researched Infobird (NASDAQ: IFBD), our impression was growth, growth, growth. In fact, the company announced last month that it expects FYE 2021 revenues to grow by 50% over last year. IFBD made that statement with H1 under their belt so we must assume business is going well.
For FYE 12-31-20, IFBD posted revenues of $14.5M and net income of $4.0M. Both figures represent a pandemic influenced drop of 20% from FYE 2019 figures. If we accept the company information about a 50% increase in 2021 revenue, we could estimate a pro forma net income of $6M for 2021.
IFBD completed their IPO on April 20, 2021, raising $25M selling 6,250,000 shares and began trading on the NASDAQ that same day.
We read an article about IFBD published back in June with the headline “Infobird Is a Rare, Undervalued and Profitable SaaS Gem” and we agree with that statement. It appears IFBD may still be under the radar of many investors due to its very recent IPO and could be trading at significantly higher levels. The growing Chinese SaaS market may facilitate rapid growth for the company.
A look at the company stock chart indicates a significant drop from the IPO high (that happens often). Except for a brief spike in late June to $6.10/share, IFBD shares have drifted to today’s value price. The shares are currently trading below their 50 DMA of $3.55 and the current RSI (14) is at 44.19. IFBD is a profitable company projecting a 50% revenue increase this year and indications are the shares may have been oversold.
IFBD has a modest share structure:
Outstanding shares (est.) 25.2M
Shares in float (est.) 10.9M
The tiny float can cause the company share price to swing rapidly. We note that insiders own 51% of the outstanding shares.
The company has been conducting business for a decade and has served over 70,000 clients so they are not a new business by any means. IFBD made its mark in the Chinese economy providing SaaS services to banks and the fintech industry. This year they have branched out to include the fast-growing Chinese retail sector.
Recent deals with SaSa Cosmetics, a company with more than 300 physical retail stores and counters in Asia, and Zu Li Jian, the leading shoe company for the elderly in China, are spearheading the IFBD leap into the retail sector.
A review of the company website indicates that IFBD operates with six different product offerings:
Cloud call center
Intelligent Telemarketing
Intelligent Omni-Channel Customer Service
AI Voice/Text Chatbox
Intelligent Quality Inspection
Intelligent Training
The company has dozens of clients and we’ve listed some of the key ones below:
China Guangfa Bank – Bank with 44 affiliated branches
ZhongAn Insurance – China’s first internet insurance company
Central South University – 55,000 students
Sinoeyes – DDI data collection
Chaoyang Real Estate Affairs Registration Center – state owned land use rights
Beijing Municipal Postal Administration – postal regulatory agency
HSTYLE – young women’s fashion
Hujaing Online Class – community learning provider
The SaaS market in the PRC is expected to be $6.9B by next year and the global SaaS market is expected to reach $436.9 billion in 2025 at a CAGR of 12.5% so there is ample opportunity for growth at IFBD.
The company released its SEC form 20-F for FYE 12-31-20 on May 14th of 2021 and should be reviewed as a part of your due diligence.
Our Considerations:
Profitable with operational cash flow
Tiny float
Growing revenues
High growth sector
Huge insider ownership
Shares appear oversold and starting to bounce
We believe the aspects above could lead to a near term gain in the company’s value.
Stay tuned and stay informed.
The Traders News Group
Privacy Policy and Disclaimer
Your Consent
By using our site, you consent to our online privacy policy and disclaimer.
Do we disclose any information to outside parties?
We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information.
What information do we collect?
We collect information from you when you subscribe to our newsletter or fill out a form on one of our social platforms. This includes your email address and or mobile phone number.
When registering on our site, as appropriate, you may be asked to enter your: e-mail address and or mobile number.
What do we use your information for?
When we collect your email or mobile number it is used for one purpose to send you the information you requested about small cap stocks. Please read our disclaimer carefully before viewing our emails.
Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, other than for the express purpose of delivering the information on small cap stocks that you requested.
We send periodic emails
The email address you provide may be used to send you information, respond to inquiries, and/or other requests or questions.
How do we protect your information?
We implement a variety of security measures to maintain the safety of your personal information when you enter, submit, your email address. We use secure third parties to send email and sms messages to you.
Because we value your privacy we have taken the necessary precautions to be in compliance with the California Online Privacy Protection Act. We therefore will not distribute your personal information to outside parties without your consent.
Online Privacy Policy Only
This online privacy policy applies to information collected through our website and social media platforms.
Contacting Us
If there are any questions regarding this privacy policy or disclaimer you may contact us using the information below.
Editor@TradersNewsSource.com
Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.
Our reports/releases 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. 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: TNS 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 TNS 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. TNS 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 TNS 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 provide herein. Instead TNS 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. TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS 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 an 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, TNS 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.The owners and operators of this website have been compensated twenty five thousand dollars cash via bank wire for our distributed opinions this week on ifbd.The advertisements in this website are believed to be reliable, however, TNS 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. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.
TNS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. TNS LLC is not a Broker/Dealer and does not engage in high frequency trading.
