This morning, ProntoForms announced a contract valued at (U.S.) $1.2-million over three years with an unnamed Fortune 500 company.
“This deployment is another indication that our enterprise growth strategy is working, as we continue to target global companies that need mobile solutions for a multitude of business processes,” CEO Alvaro Pombo said. “These global enterprises have large investments in systems for field service management and asset management operations but need a flexible, mobile-first front-end to execute field tasks associated with a growing number of unique processes and highly specialized equipment.”
Leung says this is the continuation of a trend for ProntoForms.
“Overall, we view today’s announcement as a positive data point for ProntoForms as it pursues its strategy of generating more of its business from larger enterprise-type engagements,” the analyst says. “Recall that the company currently has ~29 Fortune 50 and Fortune 500 customers of which only 12 have signed larger engagements (i.e. generates annual recurring revenues over $100k). We believe this leaves ample room within the existing customer base for ProntoForms to grow its enterprise-type recurring revenues (not including new customers in its pipeline).”
In a research update to clients today, Leung maintained his “Buy” rating and one-year price target of $0.50 on ProntoForms, implying a return of 56 per cent at the time of publication.
Leung thinks PFM will generate EBITDA of (all figures USD) negative $2.4-million on revenue of $11.4-million in fiscal 2018. He expects those numbers to improve to EBITDA of negative $1.4-million on a topline of $13.0-million the following year.
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