DENVER, CO / ACCESSWIRE / May 7, 2018 / In this article, we will be taking a look at Minneapolis based FISION Corp. (OTCQB: FSSN), "the nation's leading provider of agile marketing software that simplifies collaboration across global organizations, and more effectively manage brands and marketing content." To understand the potential of the company, investors will need to ask: what corporate 'pain points' does this platform address and how effectively does it do so? With global enterprise customers exceeding revenues of $40 billion dollars, it's obvious large companies are seeing the value.
Who is FISION? What Do They Do?
According to their 10-K filing (https://www.fisiononline.com/ir/), the FISION software platform, which includes the Volerro team collaboration module, enables customers to easily and quickly create and implement locally relevant marketing campaigns to support their sales personnel while emphasizing, protecting and enhancing their valuable brand assets and maintaining legal compliance. The software provides three major benefits to customers; accelerating their revenues, improving marketing and brand effectiveness, and reducing their marketing and sales costs by increasing the percentage of the time sales teams are actually selling.
Here is a further explanation from CEO Mike Brown, "Our patented platform's unique architecture and design permits agencies, marketing partners and distributed teams to securely access a company's 'single source of truth,' content repository, and create locally targeted collateral materials that stay true to approved branding and messaging. It also provides administrators real-time visibility into the effectiveness of marketing and sales communication, measuring performance down to the individual asset and user level.
Accordingly, the company claims that use of their software substantially reduces time and cost incurred for a company's sales cycle. By having a company centralize their sales and communications on the FISION Saas platform, sales teams are able to see what content was most effective in advancing deals throughout the entire sales funnel. FISION states that they are so confident in their product that companies will 'see a return on their investment in less than 90 days.'"
Recent News
The company has had an impressive slate of news so far this year, starting with signing up a Fortune 50 global aerospace and building systems company with over 50,000 employees. Then just 10 days later on February 8th they deployed their cloud-based digital asset management and marketing solution for a Fortune 500 financial services company, this one with over 20,000 employees. On March 8th they signed up a third client in the healthcare industry, and finally, on April 3rd, the company announced that they had started working with "a leading electronic billing and payment solutions software provider…with over 15,000 clients in all 50 states."
Within these news announcements, FISION also lays out the benefits companies have realized by having their sales and marketing communications centralized on the FISION Saas platform. Among the testimonies, one client reports an increase in sales efficiency of 50%-100%, with another reporting an increase in labor efficiency of more than 300%, allowing the client to realize their ROI in less than 90 days.
A steady stream of large corporate clients lends credibility to the company's innovative platform. According to the company fact sheet hosted on their website, FISION has a $16M total contract value active sales pipeline.
Revenue Model
FISION's revenue model consists of a one-time initial set up fee, followed by a recurring monthly license and hosting fee after the implementation process. The recurring fee is based on the number of users and/or locations serviced. Contracts are for 12 - 36 months, with the revenue being recognized on the books over the course of the whole contract in compliance with the recently updated ASC 606 rule. Quoting FISION from their 10-K filing, "A substantial majority of our revenues have been and are "sticky" and thus of a recurring nature. Most of our customers have remained with and continually used our software platform once they have integrated it into their digital marketing model and experienced the special benefits provided by our cloud-based FISION marketing solutions."
Within the press releases from this year, we also learn about their "land and expand" business strategy with these larger enterprise clients, who often times own a number of other companies under their corporate umbrella. In the January 30th press release Mike Brown describes the strategy; "As a large subsidiary of a Fortune 50 company with more than $50 billion in sales, this customer also presents a phenomenal 'land and expand' opportunity for FISION," added Brown. "We now have a strong foundation to expand the adoption of FISON to its other global divisions that are collectively three times the size."
FISION's approach is unique and transformative enough to warrant a US patent. The patent validates the exceptional level of innovation represented in the FISION platform, as well as the unique value proposition the SaaS-based platform offers enterprise customers and channel partners worldwide.
With 77% of revenues being recurring, and with 87% gross margins, FISION has created a revenue model that is highly scalable with reliable cash flow due to its recurring revenue model. Having a customer base of US Bank, Ameriprise Financial, Capella University, and SAP Ariba among others it is clear that FISION's patented technology is catching on.
Company Potential & Market Size
Some have described FISION's platform as Dropbox on steroids, and Dropbox was not messing around with their recent IPO into the marketplace at over $8.2B. FISION has a current market cap of only $8.7M, which is quite low for a company that has signed on multiple fortune 500 companies and only has $1.8M in total debt. With gross margins a very impressive 87%, it would not take much additional revenue to make FISION profitable, and with a contract value sales pipeline of $16M, it appears FISION will make it to profitability sooner than later.
The 4 person management team driving this expansion is led by CEO Mike Brown, who was the SVP of operations, sales, and marketing at Life Time Fitness; a $1.1B NYSE company for whom Mike oversaw revenue growth from $7M annually to $689M annually, with the company eventually being sold to a private equity firm for $4B. Garry Lowenthal, EVP & CFO of FISION has 20+ years experience in merger integrations and finance; Wade Anderson, the company CTO previously worked for Best Buy; and Jason Mitzo, the company CRO comes from a background working as a business developer and team leader at Oracle. This management team has a clear, proven track record of public company success.
The cloud business process services (BSaaS) industry is expected to grow at a 14% CAGR to a $151B industry by 2020, and the global digital marketing software industry is expected to grow at a 23% CAGR to $79B by 2020, yielding a vast market opportunity ahead for FISION. Essentially the company's platform has unlimited potential since it is highly configurable, multi-tenant, and multi-tiered in its architecture. Additionally, the company's sales force is focusing on a number of high growth industries including; healthcare, financial services/insurance, technology, and hospitality.
Conclusion
The impressive clientele already using the FISION platform speaks to how effectively the software addresses the most pressing corporate pain points. With a proven leadership team at the helm and a robust pipeline of large corporate clients, savvy investors will want to have FISION on their radar.
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