 Hello everyone. Welcome back to Investor Intel. My name is Peter Clausi. Today we're talking again with Chris Thompson about one of his research reports. Hi Chris. Hey Peter, how are you today? I'm well. You and I haven't chatted for a bit. Today we're talking about your report on Movely Media, which trades as MVY on the venture exchange. That's correct. You are paid to write research but you don't write anything you don't believe in. That's right. I try not to but yeah. I like to focus on names where there are some sort of catalysts happening and there's going to be a share price appreciation from these catalysts that could be perfect for the company. Well, Movely has already had a really nice capital appreciation. I met the CEO at PDAC 2020 where we stress tested the software. I think I did something like 35 interviews over three days and the software worked perfectly. So I became a shareholder a couple of years ago when it was around 6, 7, 8 cents currently trading around 60. Yeah. I also like the company so much. I bought some shares as well. I participated in the financing last December. So what drove it from 8 cents to the 60 where it is now? I think it's just public awareness of the product itself. It's grown to the size. You know it's gotten out 3.7 million users who are using the application. It also has got some great partnerships and I think that just the momentum of those announcements and those deals have helped investors become more aware of the company. It must be driving revenue upwards as well. Yeah. There is incremental revenue coming through. I mean they do have a fairly good e-commerce base or your consumer product that's out there that is growing steadily month on month. They had a bit of a boost you know with the COVID stay at home where people wanted to make videos. You know movely focuses on it's a feature rich platform for video creation and so it really sort of keyed in for people staying at home and wanting to create videos from home and that's where they got even more of a boost. But I think more and more it's the enterprise customers who are coming in who are using some of their features like their API to integrating to their own products or they also have an automation tool that allows you to customize videos very quickly and send it out and I think those types of features have really sort of struck a chord with the larger enterprise clients who are looking for a partner you know on the video creation platform. I was talking to the CEO Brendan Grunewald when they wrote their Google API so that it would enable like if you and I were talking within their platform it could give you subtitles in another language across the bottom in near real time as we're chatting. Yeah and that's one of the things that movely has done is it's really listened to its customers and tried to build a platform that really has a lot of features and work with their larger customers on that and that's what I think is really important because you know it's all said and good to have some you know some enterprise sort of some you know e-commerce clients come on one by one but really what you want to do is sign these larger deals and that's where I see the big catalyst coming where you get one of these larger deals and in my report I sort of give one example of like you know the the website creation software companies you're just one of these partnerships of signing up say you know 100,000 clients you know at a dollar per day as an incremental million dollars to movely's bottom line and these are the types of catalysts which will see the revenue go like you know from 1.5 million this year sort of the 2.5 million next year and even maybe up to a step jump of 8 million and that's what I have in my report and that's and that's where I'm seeing this sort of this catalyst being done by these larger enterprise customers coming in and and taking hit the platform and integrating it into their offering. Does movely have the capacity to scale up? Yeah it's a SaaS based platform so it's easily scalable itself and they've gone on and signed up to hardware contracts online with the distribution of the various web points to enable it to scale up into millions of users. And I see that this week or today well today they announced that they've integrated with Instagram allowing users to publish videos made in movely's platform directly to Instagram. Yeah and they've done that with both on the in and the outbound they've done lots of third-party integration so they've integrated with products like you know box and Dropbox and Google Drive and Microsoft Drive to be able to to get your your information on and off or in and out of the platform and then they when you've done the video they have integrations with with things like platforms like Facebook and Instagram YouTube so you can maybe publish your videos to those platforms. So seamless is the magic word right? Yeah seamless exactly so you can when you're talking about moving around you know data you want to be able to easily pull data in and out of your platform and be able to publish it seamlessly to your to your audience. 136 million shares out trading around 60 cents so roughly an 80 million dollar market cap today. Where do you see it going? Well in my I did a DCF as well as a revenue blend to create a target price. I have it in the next 12 months being at $1.40 based on those metrics and that's and that's from the revenue going from you know 2.5 million this year to about 8 million the year after. So I believe with those enterprise clients they can achieve those numbers. What kind of multiple are you using? Well it's a fairly healthy multiple it's a 40 times revenue multiple right now because of the growth in the product as well it is a SaaS product and because of its growth curve it does warrant a fairly high multiple. Who else has that kind of multiple? Shopify? Shopify does have a high multiple any of the your SaaS based growing companies that are scalable and of interest to you know probably a third party acquisition you know could be interested in it will warrant that high multiple. Neat. Well I'm due to talk to Brendan soon anyway so I can bring this up with him. Your website is e-research.com. That is correct. So you can find the report there if you have any questions Chris is easy to access by phone or by email his information will be all over the website. It is and it's all over the report the report's available for free from the website you can download it and my contact information is on the report. Chris it's always a pleasure talking to you. Thanks Peter have a great day. Peter Clausi signing out from Investor Intel. Have a safe day everyone.