A small fast-growing Vancouver technology company deserves a place on stock watchlists.
MediaValet Inc. operates in the digital asset management business of tracking, organizing files, making them accessible and improving creativity and efficiency
That sounds like a lot of gibberish but the company claims that with the equivalent of 90 per cent of world data being created every two years, its services are required.
The gazillions of files that end up in storage in the Cloud need proper management.
MediaValet operations run from 63 data centres in 140 countries with more than 500 customers. The company says 100 per cent of customers keep retaining MediaValet.
One area where these services are useful involves 63 per cent of employers who have employees working remotely.
How do you keep track of the files they access, the files they share, the files they create and how creative they are?
This year MediaValet has added three new programs —notification of applications used, forensic marking and facial recognition. All are key to keeping data files secure.
The company boasts 80 per cent operating gross profit margins for years. The website lists 37 per cent growth in annual revenue.
Unfortunately the 11-year old company has never made a penny profit after expenses.
In the four fiscal years ended December 2022, total losses have amounted to over $20 million.
In the six months ended June 30, the company lost $5.16 million on revenues of $12.8 million. Losses did decrease slightly from the previous period.
The company terminated 10 employees — 10 per cent of the work force — for a gain of $.1.8 million over the next 12 months.
Expenses this year have only increased by three per cent.
MediaValet has about $500,000 debt and just under 40 million shares outstanding with insiders owning 25 million shares.
Yahoo Finance indicates two analysts follow the stock, with losses expected this year, narrowing some in 2024. Their estimates of stock price in the coming year are $1.50 and $2.50.
Current price of $1.22 has shown little movement this year with a low of $1.10 and a high of $1.54.
Cash on the books is less than one year’s needs at the current rate cash is used, suggesting a need for large financing soon.
Still, this company bears watching for the day it succeeds in making a profit on an ongoing basis — if it does.
One question: Is MediaValet expanding too fast?
The company operates in a highly competitive area and requires fast expansion to keep up with competitors.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
