(ARD: TSX-V)
I am extremely proud to announce that Armada Data (ARD:TSXV) was added to the AGORACOM 100 today. Why? Because Armada Data is one of the few web-based companies on the TSX Venture Exchange that is actually enjoying great commercial success. The company has real products, customers, revenues and success. For example, within a couple of hours of signing Armada Data, I learned that a couple of my employees and our attorney had successfully used their site www.carcostcanada.com to help determine dealer invoice prices on cars they were interested in buying over the past 12 months. You should also know that 26 Canadian insurance companies use their services, including 8 of the 10 largest.
I’ve provided some highlights about the company that you need to know below. As always, assume I am horribly conflicted by the fact ARD is an AGORACOM client and do your own due diligence. The info below should give you a great running start.
DESCRIPTION
A profitable web-enabled Automobile Information Services Company providing accurate and real-time pricing data, to institutional and retail customers on a fee-for-service basis, through developing, owning and operating automotive related websites such as www.carcostcanada.com and providing information services to its clients.
CONNECTING CAR BUYERS AND DEALERS AT THE CHEAPEST PRICE
What does that mean in layman’s terms? First, let’s talk about the side most of you can relate to – the Retail side. Via www.carcostcanada.com the company provides consumers with an opportunity to determine dealer invoice pricing on up to 5 different vehicles. In return, consumers pay $39.95 for a monthly subscription until they presumably decide on a vehicle. Moreover, the site will actually direct you to dealers that are willing to sell you your precise vehicle for invoice + $500, so that eliminates the need to haggle with dealers. That is a HUGE benefit to consumers that need to save money, get their information quickly via the web and close a deal quickly without having to visit 3 different dealers for a few weekends.
The bonus? The dealer also pays Armada Data a referral fee for saving them the time and expense of having to acquire a new customer. Anybody not see a service like this only growing in demand over time? Now you know why I love this company and why I believe it has real potential for long-term success.
STREAMLINING INSURANCE CLAIMS
26 Canadian insurance companies, including 8 of the top 10, use Armada Data’s claims outsourcing service that serves to streamline the claims adjustment process. The company advises that insurance companies save over $1,000 per claim. Assuming insurance companies will still like the idea of making money in the future, I am going to assume they will only increase using the service over time – unless a better competitor comes along.
THE NUMBERS
It all sounds impressive – and we’re all used to hearing great stories out of small-cap companies – so let’s check the numbers. For the year ended May 31, 2009:
- Overall revenue grew from $1,732,944 in 2008 to $2,157,900 or an increase of 24.5%
- Declared it’s first dividend of ½ cent per share. A dividend. That is not a typo.
- Reported it’s 3rd consecutive year of profitability with net income of $0.01 per share
Increasing top line, dividends and sustained profitability. True, the numbers aren’t massive but they are very healthy.  More importantly ….
…. THE FUTURE
I like the company for two reasons. First, it has a proven track record of execution and has reached commercial success given its widespread use on the retail side, as well as, a client role of pretty much every major insurance company in the country. You just don’t get to this level unless you’ve proven to customers that your products work and are valuable. If Armada Data can get through the due diligence process of the insurance industry, I am going to take that as all the evidence I need about their products.
Second, what is perhaps even more important is the fact that the trend is their friend. More people are using the web than ever and we all know that is going to grow. Yes, the total number of people using the web will technically saturate in a few years – but that is only where this story begins, not ends. Why? Web use can currently best be described as “wide”. That means a lot of people are using the web to mainly do the basics. Surf, network, watch some videos, etc.
However, we are now in the process of web use beginning to go “deep”, meaning that mass group of people is going to incorporate the web further into their lives. We won’t just research, we’ll be buying more. We won’t just browse, we’ll be buying more. We just won’t watch, we’ll be interacting more. We are going way beyond the desktop and onto mobile. Having dinner conversation and want to know about real estate prices in a certain area? You’ll bring it up on the web. Talking to your buddies about buying a car and need to figure out which one best suits your budget? Build it and price it on www.carcostcanada.com before your coffee is done .
CONCLUSION
This is just the way the world is going to go and companies like Armada Data have an opportunity to be the Kings of their space. Remember, AGORACOM is a Web 2.0 company and look how far we’ve come in just a few short years. Now think about where we will be in a few years. There is no stopping the deep web, so you would be well advised to find some companies that will benefit from it. I think Armada Data is well worth your consideration and I hope this post has provided you with a great starting point.
Armada Data Joins the “AGORACOM 100” & Launches Online IR & Marketing Program
Link to Hub/ Link to Profile/ Link to Forum
Regards,
George
