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Intouch Insight offers a complete portfolio of customer experience management (CEM) products and services that help global brands delight their customers, strengthen brand reputation and improve financial performance. Intouch helps clients collect and centralize data from multiple customer touch points, gives them actionable, real-time insights, and provides them with the tools to continuously improve customer experience. Founded in 1992, Intouch is trusted by over 300 of North America’s most-loved brands for their customer experience management, customer survey, mystery shopping, mobile forms, operational and compliance audits, and event marketing automation solutions.

Note: Maj covers a few points in his discussion with management at about the 10 minute mark.

Video Outline

Clarity on business model – earn revenue 3 different ways

  1. Per transaction (collecting data from customer transaction that occur at retail locations)
  2. Volume of transaction (fee based on volume of transactions)
  3. Recurring monthly fees

The balance sheet and cost cutting efforts the company made in response to the virus outbreak puts the company in a good position to avoid racing money for a lengthy period of time.

Near term risks

  1. Less revenue due to reduced activity to drive transaction and volume fees.
  2. Unclear how much recurring monthly revenue they will collect.
  3. The longer the economic shutdown, the harder it may be to maintain its current customer base. However, many of the customers are big brand names that can likely weather the storm better than smaller businesses. 
  4. Some customers may possibly abandon brick and mortar and focus on more online platforms.
  5. The longer the shutdown continues, that greater the chance of a reduced labor force which may lead to increased training costs.

Opportunities

  1. Its compliance services business could benefit if customers have to implement new safety standards relating to retrofitting its stores.
  2. The market is very fragmented and includes many smaller players. If these competitors/peers go out of business, it should bode well for market leaders such as INXSF.

Our take

If the crisis is contained within 6 months, we think the company can recoup a good amount of lost business as well as capitalize on new growth opportunities created by the crisis.

4 Comments

  1. Brian M

    Great discussion. I think this provides a lot of clarity on the breakdown of revenue from the two business lines and how you are thinking of them.

    Does Canada have any small business support similar to PPP in the US? It would be interesting to if they were eligible for a bridge loan to get them through until store start to open again.

    thanks for the insight (lol)!
    Brian

    1. Maj Soueidan

      Thank you Brian. We’re glad you like the videos. We definitely plan on doing a lot more of these moving forward. I hope you’re staying safe 🙂

      Maj

      1. Maj Soueidan

        Hey Brian M

        They give a breakdown between these two segments:

        Software services ~80% business
        SaaS software ~ 20% of business

        Services is the data collection part of the business.

        I believe SaaS was fully launched in 2018. This segment analyzes polling and other customer experience data in real time to help companies make sales and customer support decisions.

        I will have more information next week. I’ll also reach out about PPP type of relief.

        Thanks

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