"IMImobile at the centre of how businesses communicate with their customers
14:58 11 May 2018
Jay Patel, chief executive of IMImobile PLC (LON:IMO), tells Proactive they work with some of the largest telcos and banks helping them service their customers through the use of mobile and digital technologies.
Patel says their cloud software platform manages more than 22 billion messages and 42 billion commerce transactions a year around the world.
''In all our core markets we have an ability to grow quite well over the coming year''.
''The way we communicate today is very different to what we did five years ago .... what's going to happen in the next five years is that businesses are also going to communicate with you in a different way and we're at centre of that''.
''We've got a multi-year journey ahead of us ...and the addressable market is large'', Patel says."
The growth company in question is cloud communications software and solutions provider IMImobile (LSE:IMO). The companys trading update for the year to 31 March showed a rise in organic revenue of 45%, which was ahead of expectations. This helped to deliver a year-on-year gross profit increase of over 17%, with net profit being in line with expectations after the anticipated investment in various growth initiatives.
The companys recent acquisitions appear to provide the potential for a move into new markets. There has also been further progress in cross-selling opportunities, while ongoing product innovation and the development of intellectual property could have a positive impact on the companys long-term outlook.
With IMImobile forecast to generate growth in earnings of 22% in the current year, it appears to have a strong outlook. Despite this, it trades on a price-to-earnings growth (PEG) ratio of 1, which suggests that it may be undervalued by the market. This could mean that there is capital growth ahead for the stock, with what appears to be a solid strategy having the potential to generate rising profitability in future years."
IMIMobiles Trading Update shows good progress, both tactically and strategically, as this cloud communications software and solutions provider drives revenue faster than market expectations, extends its portfolio and builds out into new market opportunities.
The management indicate that the results for the year to March 2018 will show revenue up over 45% from last years level of £76.1m. Gross profits are estimated to have advanced by over 17%, with EBITDA and net profit in line with market expectations after significant corporate activity, additional investment in sales capabilities and additional product development.
During the year, IMIMobile made further advances in the UK, where it already has a strong position with leading banks, telcos and utilities. The December 2017 acquisition of Healthcare Communications, with its customer base of 140 NHS Trusts has increased its public-sector presence significantly. Additional customer wins in the retail, logistics and utilities sector will also drive further growth in the companys UK business. M&A has also stepped up the companys US business with the purchase of the Sumotext messaging platform. Elsewhere, IMIMobile is enjoying strong growth in India due to its successful partnership with the Telenor Group as well as from its Enterprise and Textlocal businesses there.
We should expect additional acquisitions to establish presence in new markets, enabling the deployment of the companys broad messaging and customer journey transformation portfolio.
This portfolio has been enhanced by the addition of an RCS (Rich Communications Service) capability and over the year has seen further progress in its chat and consent management solutions, the latter being particularly important as companies in Europe wrestle with the introduction GDPR and its new privacy requirements.
IMIMobile has both a strong portfolio and market presence in an increasingly important niche within the digital economy. We can expect further strong progress during 2018."
Whitman Howard today reiterate their Buy recommendation, and will update their target price and forecasts later.
Their comments on IMO's involvement in AI and automation are good to hear. Once the market eventually latches on to this things could get very interesting here....
"Interestingly IMO continues to invest in its AI and automation capabilities
with several current implementations for their IMIbot.ai product for companies in the utilities and retail sector. We see this as an interesting area of further growth and clearly this space is growing very fast and attracts very high multiples. We expect IMO to expand on their strength in this area at the full year results.
We expect IMO to continue to offer an attractive combination of organic growth, earnings enhancing acquisitions, and new growth opportunities such as its expanding AI and automation capabilities. In addition we expect margins to move higher over time. We retain our BUY rating."
IMO are now "the UK market leader for digital and mobile interactions across major industry verticals".
GDPR should be a growth driver this year, as IMO:
"also introduced a Consent Management solution to help clients comply with the new General Data Protection Regulation (GDPR) with the first implementation of the solution delivered during the year to 31 March 2018".
The outlook is very bullish, also signalling the likelihood of more acquisitions:
"The Board continues to see exciting opportunities to play a leading role in the continued consolidation of this exciting and rapidly evolving market.
Jay Patel, Chief Executive of IMImobile PLC, commented:
"We have successfully built high quality software products that are well positioned to help our clients meet the challenges of digital transformation. The Group has now established its reputation for strong cash generation and year-on-year progress and we expect growth from all our divisions and geographies in the coming year. The acquisitions we have made have performed well and, adopting a similar, selective approach, we see further exciting opportunities to take a leading role in the consolidation of this sector."
"MIDAS SHARE TIPS: IMImobile is a fast-growing company that specialises in helping businesses deliver useful information to their customers in a range of highly effective ways
By Joanne Hart, Financial Mail on Sunday
Published: 21:50, 7 April 2018"
"The group has been expanding both organically and through acquisitions, and has been investing in research and technology too. So, although the balance sheet is strong, dividends have not been on the agenda to date. That should change over the next few years, as the group becomes increasingly profitable.
Growth is expected to come from winning new clients, gaining more business from existing customers and strategic acquisitions.
Mobile phones are an intrinsic part of daily life not just for consumers in developed economies but all over the world. IMI helps businesses to benefit from this, using technology to connect businesses with their customers easily and effectively. This trend is likely only to increase over the coming years.
A trading statement will be issued in mid-April, providing guidance for the year to March 31, 2018. It is expected to provide evidence of continued progress.
Midas verdict: IMImobile shares are 267p and have done well recently, but they should continue to deliver strong growth. Buy and hold."
"The journey is by no means complete for IMI. Following the successes above the IMI share price has re-rated from c.6x to c.11x EBITDA but remains at a significant discount to its international peer group which averages 15x. Furthermore, the prospect for accelerating growth is promising, with strategic partnerships and recent acquisitions all providing potential for meaningful earnings enhancements. Recent investment into the US market opens another possibility.
IMIs exposure to many of the key trends in digital; automation, digitisation, Artificial Intelligence and cloud based software offer a growing list of potential growth opportunities. We believe the business could use its cash on the balance sheet and ongoing cash generation to make further opportunistic, value adding acquisitions as well as demonstrating its financial discipline and shareholder focused approach to provide shareholders a modest, but growing dividend. We expect the company to continue investing into organic growth opportunities, including targeting the US market through partnerships.
Both Gresham House and IMI believe this leaves the company well placed to continue its share price growth and to reach a midcap size over the next 2.5 years as per our 5-year investment thesis. IMI Mobile remains the largest holding in the Gresham House Strategic plc portfolio and is a statement of our conviction in the growth story going forward."
IMImobile SA has announced the launch of mVideo, a high-resolution mobile video delivery solution available across South Africa.
mVideo allows mobile marketing and enterprise customers to streamline the creation and delivery of high-resolution video content across multiple communication and media channels, such as email (as attachments or a link to a cloud-hosted video), social media (Facebook, Instagram and Twitter), YouTube, and mobile app.
The announcement follows the recent GSMA Mobile World Congress in Barcelona, Spain, where the demand for video delivery was identified as one of the key mobile trends. As video technology continues to evolve, video-based content is increasingly consumed across all regions and use cases, it is predicted that video will account for around 75% of mobile traffic worldwide by 2023.
With smartphones able to access and stream full-length HD videos in seconds, the media, marketing and broadcast industries need a viable way of delivering high-quality video content optimised for the diverse range of devices and channels. As a result, traditional video delivery formats such as MMS (Multimedia Messaging Service) simply cannot deliver the video experience customers desire. says Devon Meerholz, chief creative officer at IMImobile SA.
IMImobiles SA customers use videos for in-store screen experiences, social media promotions, as well as the personalised distribution of video-based itemised bills and bank statements. With mVideo, a multi-channel video campaign starts life as a full-motion video which is then selectively compressed down for every device and distribution channel. All full-motion videos are produced in-house by IMImobiles own Creative Studio that is solely focused on optimising video content for mobile and digital distribution channels.
The advantage of our approach is that we can supply our customers with multiple versions of the same video, with each video optimised for a different marketing channel or platform, says Meerholz. Its been predicted that mobile users will spend 36 minutes daily watching videos on their smartphones in 2018, so mVideo is sure to hit clients sweet spots this year.
IMImobile is a cloud communications software and solutions provider that enables companies to use digital technologies to communicate and engage with their customers. The company has helped to developed industry best practices by delivering country-specific mobile initiatives from mobile bank statements in South Africa to personalised marketing videos in the US."
"IMImobile launches RCS Business Messaging in its customer journey automation platform IMIconnnect
The GSMA estimates that by Q1 2019 there will be c. 1.05 billion monthly active users, served by over 200 mobile operators.
London, 7th March, 2018 - Cloud communications software and solutions provider IMImobile, today announced support for RCS Business Messaging (Rich Communications Services) in its IMIconnect platform. Enterprise businesses can now launch RCS messaging services alongside 10+ other mobile and digital communication channels, including SMS, Push Messaging, Email, and Facebook Messenger, that are available out-of-the-box in IMIconnect.
Over the last 12 months IMImobile has been working closely with ecosystem partners like the GSMA, Google and Vodafone UK to drive the adoption of RCS. With recent announcements of RCS Business Messaging initiatives at the Mobile World Congress in Barcelona last week, IMImobile was pleased to showcase innovative RCS use cases of its customers including Barclays, British Gas, Foxtons and Pizza Hut Delivery at GSMA Innovation City.
IMImobile believes the adoption of RCS will further enhance messaging interactions between consumers and businesses in years to come, enabling a natural evolution of today's SMS experience. According to the GSMA, consumers are overwhelmingly excited about what RCS has to offer; nearly 80% of consumers find RCS appealing and over 70% say RCS would make them more likely to want to communicate with a brand.*
Sudarshan Dharmapuri, SVP Product Management said, "We are excited to make RCS Business Messaging available in IMIconnect. This allows enterprises to use IMIconnect to build, prototype and deploy RCS journeys within days using our low-code tools. The successful deployment of RCS journeys requires customer interactions to be orchestrated across existing backend systems. IMIconnect is specifically designed and developed to enable end-to-end automation of customer journeys."
Businesses interested in building RCS messaging experiences can sign up for IMIconnect. Users will then be able to access a 'drag & drop' workflow builder that allows the quick and easy configuration of RCS messaging journeys, including verified branding elements, rich media, image carousels, customised action buttons and replies. More importantly, any RCS services can easily be integrated with CRM, marketing and customer service systems to allow the fulfilment of RCS customer journeys across existing business processes."
"Law soon to make all govt. services on mobile platform
The government is going to bring out a law to ensure that all its services are available through mobile and in the near future, citizens can expect land registrations, revenue records and the likes to be available in the format, said IT Secretary Jayesh Ranjan on Wednesday.
The day is not far when all services will be provided through the mobile thus providing governance in citizens hands, he said at the launch of the T App Folio by IT and Municipal Administration Minister K.T. Rama Rao.
Right from today by downloading the app, citizens can avail up to 150 services of the GHMC, RTA, Police and T-Wallet and within a year another 1000 services will be added to it, said Meeseva and Electronics Service Delivery (ESD) Commissioner G.T. Venkateswara Rao.
"IMImobile customers to demo RCS solutions at MWC
Tuesday 27 February 2018 | 17:20 CET | News
IMImobile will showcase and demonstrate Rich Communications Services (RCS) cases of some of its UK enterprise customers at Mobile World Congress (MWC) in Barcelona. RCS is seen as the successor to SMS in the coming years and supports more interactive features such as hot buttons, media sharing and rich graphics cards.
IMImobile enterprise customers, including British Gas, Barclays, real estate agency Foxtons and Pizza Hut Delivery, will showcase their RCS experiences at the GSMA Innovation City at MWC. These demonstrations will include mobile banking customer care for Barclays, pizza ordering and delivery for Pizza Hut, and engineer booking and reschedules for British Gas. IMImobile is working with partners including the GSMA, Vodafone and Google to drive awareness and adoption of RCS business messaging in the UK market."
"MWC18 Leading UK enterprises explore RCS with IMImobile at Mobile World Congress
By Paul Skeldon on 26 February 2018 Messaging & Engagement, News
IMImobile will showcase and demo RCS messaging experiences of its UK customers Barclays, British Gas, Foxtons and Pizza Hut Delivery at the GSMA Innovation City at Mobile World Congress in Barcelona.
IMImobile has been working in collaboration with a number of partners, including the GSMA, Google, Vodafone and its customers to drive the awareness and adoption of RCS business messaging in the UK market.
As part of its role in helping to drive adoption of RCS, IMImobile will be presenting a selection of demo use cases of its UK enterprise customers at the GSMA Innovation City at Mobile World Congress. Located in Hall 4, the GSMA Innovation City will be showcasing an array of cutting edge products, software and technology, shaping the future of digital customer engagement.
Covering a wide selection of industries and use cases, Mobile World Congress attendees can be taken through a number of RCS demos that we have developed in conjunction with our UK customers including: mobile banking customer care for Barclays; parcel tracking for a leading logistics delivery company; engineer booking and reschedules for British Gas; pizza ordering and delivery for Pizza Hut Delivery; and real estate agency Foxtons all using RCS to deliver enhanced mobile customer experience.
We are excited about RCS business messaging as it allows enterprises to create a richer and more interactive experience with their consumers. The GSMA Mobile World Congress in Barcelona provides the perfect platform to showcase and demo the feature-rich capabilities of RCS to a wider audience and we look forward to working with the messaging industry ecosystem to drive the adoption of RCS in the coming months, says Sudarshan Dharmapuri, Senior Vice President of Product Management at IMImobile.
RCS forms part of the growing messaging industry ecosystem and is seen by many as the successor to SMS in coming years. Offering significant advantages over SMS and an impressive capability list, businesses can use file and media sharing, hot buttons, carousels, rich graphic cards, and other features to create more engaging brand messaging and conversational experiences for their customers.
Businesses have so far expressed a great appetite for RCS as it can help transform verified mobile messaging experiences and drive more conversational customer interaction. This is where enterprises are looking to shift customer engagement strategies and service fulfilment to interactive two-way messaging channels. This is due to a shift in consumer behaviour, with recent research highlighting the demand and preference for conversational messaging-based experiences. A recent IMImobile survey across 1,000 UK consumers found that 50% preferred messaging based customer interaction, and that 68% of customers who contacted a business via a messaging channel preferred it to using voice or email based interaction."
IMImobile, a cloud communications software and solutions provider, has signed a partnership agreement with KCOM - a leading provider of communications and IT services in the UK.
IMImobile's omnichannel chat solution, IMIchat, will enable KCOM's contact centre clients to provide live two-way interactive messaging chats with customers across digital channels like SMS, Facebook Messenger, Twitter, and Webchat, alongside their existing voice channels. To support end-to-end customer experience and service automation, KCOM customers will also be able use IMIconnect, IMImobile's customer journey automation platform.
KCOM chose IMImobile due to its market leading position in the digital customer interaction space as well as the ability to integrate digital communication channels into existing contact centre infrastructure.
Jay Patel, Chief Executive of IMImobile, commented: "Contact centres are a key part of any customer engagement strategy as businesses are adapting to respond more effectively to the demands of the connected consumer. Through IMIchat and our communication orchestration layer, KCOM can further help UK enterprises to utilise digital communications channels in their service and support operations."
Stu Smith, KCOM's Head of Innovation & Development, said: "Our guiding principle is to help our clients improve their customers' experiences and the integration of robust and secure social messaging is vital to that. By working closely with IMImobile we can innovate solutions to meet the growing demand from end users who prefer to communicate with companies across multiple social channels."
KCOM is a communications and IT provider for major organisations across the UK, including HM Revenue & Customs, NFU Mutual and BUPA."
"Press Releases / 11th December 2017
Omnichannel chat from IMImobile offers seamless agent channel navigation for CXone users.
London December 11, 2017 NICE inContact (Nasdaq:NICE) today announced that IMImobile has joined the DEVone development program to provide omnichannel chat on CXexchange, the most extensive technology ecosystem currently available in the customer experience market. Products available on the CXexchange marketplace are designed to integrate with NICE inContact CXone, the worlds #1 cloud customer experience platform.
IMImobiles omnichannel chat solution allows CXone users to instantly add additional messaging channels including SMS, Facebook Messenger, Twitter, In-App chat, Email, Skype for Business and WeChat for customer support to their existing NICE inContact interface.
NICE inContact customers will benefit from IMImobiles digital chat and customer experience automation solutions by enabling:
Easy integration of mobile and digital channels into the existing NICE inContact chat interface; agents can continue to use the same UI they are already trained on.
Orchestration between automated and agent assisted interactions to improve operational efficiencies and customer support experiences.
Artificial intelligence-powered chatbots to enable automation and orchestration of omnichannel customer journeys across contact centre systems and business processes.
NICE inContact CXone empowers organisations to provide an exceptional customer experience by acting smarter and responding faster to ever-changing consumer expectations. To meet the needs of organisations of all sizes, CXone combines best-in-class Omnichannel Routing, Workforce Optimisation, Analytics, Automation and Artificial Intelligence all on an Open Cloud Foundation.
The need for contact centres to provide an omnichannel, digital customer experience is imperative within the current market, where consumers increasingly prefer to use digital messaging channels according to new research from IMImobile.
Jay Patel, CEO, IMImobile
IMImobile is excited to partner with NICE inContact and join CXexchange marketplace. IMImobiles digital chat solutions have proven to enable intelligent and proactive customer engagement while improving first contact resolution and reducing inbound call volumes.
DEVone offers partners broad tools and resources to enable them to create new applications on CXone, including extensive documentation and support, and access to an online developer community. Companies interested in how IMImobiles application works with CXone can visit CXexchange to learn more about the application and read reviews. CXexchange is a centralised, state-of-the-art marketplace for developers to market and sell their CXone-based applications.
Todays consumers seek a conversational chat-based interaction with companies according to our research, said Paul Jarman, CEO of NICE inContact. With IMImobiles omnichannel chat on CXone, contact centre agents can easily navigate chat interactions across social, mobile and online channels. We welcome IMImobile as part of the CXexchange marketplace.
"IMImobile (IMO) has agreed to acquire Healthcare Communications, which provides appointment management and patient experience communications to the UK healthcare market. This will entail an initial consideration of £9m payable in cash upon completion, with a deferred consideration of up to £6m payable in cash or shares, based on performance over the next two years. The acquisition is being funded with existing cash and with a new £12m debt facility provided by Silicon Valley Bank. IMImobile says Healthcare Communications has an established track record of profitable growth, with three-year revenue and gross profit compound annual growth rates of 50 per cent and 54 per cent respectively. The acquisition is expected to be immediately earnings enhancing. The groups shares were up about 2 per cent in morning trading. Buy."
And IMO is the featured stock in the Mail's market report this morning:
Shares in Imimobile nudged up after it revealed it had acquired a healthcare communication rival for £15million.
The company, which sends automated text messages on behalf of restaurants, delivery firms and hospitals, has snapped up Healthcare Communications. It said that the deal would enable it to provide communications services to 140 NHS organisations, and is expected to boost earnings this year."
"IMImobile Targets NHS Efficiency Drive
Thursday 07 December 2017
IMImobile Targets NHS Efficiency Drive
Cloud communications software and services provider IMImobile is making a play for the NHS IT services market through the acquisition of UK patient communications specialist Healthcare Communications. The move is aimed at enhancing IMImobiles public sector position through establishing a foothold in the £1.6b healthcare segment.
The NHS has identified better use of digital patient communications as an important driver of efficiency savings as it works to close a £30b funding gap by 2020/21. The Department of Health estimates that missed hospital appointments cost the NHS around £750m a year. Healthcare Communications, which turned over £3.6m last year and provides services to 140 NHS trusts, has established technologies which address the Did Not Attend problem. IMImobile believes adding these capabilities to its products and solutions that will provide significant cross-sell and up-sell opportunities in the NHS IT services arena (read the latest UK Public Sector SITS Market Trends & Forecasts Report for further insight into the healthcare market).
Under the terms of the deal, IMImobile will pay an initial consideration of £9.0m in cash on completion withh additional deferred payments of up to a maximum aggregate value of £6.0m, split over two years based on a mix of gross profit growth and EBITDA targets. The deferred consideration will be satisfied either in cash or shares. It is being funded from a mix of existing cash resources and a new £12.0m debt facility agreed with Silicon Valley Bank.
This latest announcement comes hot on the heels of the purchase last month of US messaging provider Sumotext (see here). It also marks a continuation of a heavily acquisition led expansion strategy which has accounted for three quarters of the near 50% top-line growth achieved in its last financial year (see here). This business has grown consistently at double-digit rates while generating cash. There is every reason to expect that this rate of progress will continue."
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