Software-as-a-Service, or SaaS as it is shortened, has become the go-to business model for tech companies. The rationale is pretty obvious, as compared to selling a product one time to a customer, SaaS provides for higher margin, recurring revenue. One SaaS product can also introduce a customer to an ecosystem, which is the simplest path to upsells, and more revenue. All companies are not created equal, though, and investors need to be attuned to fundamental structures that can separate businesses from peers in what has steadily become a congested marketplace.
For iCoreConnect (OTCQB: ICCT), key differentiators flow through in-house development of a portfolio of SaaS solutions with several key core products that serve as cornerstones for scalability. The company currently has a suite of 15 different SaaS solutions designed to meet software demands for doctors, insurance companies, hospitals, and patients, to name a few. The product lineup ranges from IT services to practice software that is endorsed by dozens of leading dental organizations nationwide, allowing iCoreConnect to solve a problem for almost any account with the ability to fold in additional services once the end user becomes comfortable with navigating the software.
Developing the software in-house allows for iCoreConnect to be quick and nimble to develop new software when market opportunities are presented. A perfect example of this is the company’s iCoreRx ePrescription software. Two years ago, the software didn’t exist, but a surge in market demand sparked innovation for the HIPAA-compliant solution for digitizing the filling of prescriptions, which is now iCoreConnect’s top selling software.
In the same lane, the company on Tuesday announced the release of Complete Dental IT, a comprehensive solution for the Michigan Dental Association (MDA) designed to decrease the technology burden of running a dental practice while improving dental practice IT infrastructure. The new product is the creation of two MDA-endorsed companies, iCoreConnect and ChoiceTel Telecommunications, to provide better security, fewer fails and predictable costs to keep any dental practice’s IT budget predictable.
In a phone conversation with AllPennyStocks.com, iCoreConnect Chief Executive Officer and President Robert McDermott explained that he sees tremendous growth opportunities in massive marketplaces that his company intends to penetrate through both organic growth and strategic acquisitions. McDermott obviously can’t disclose too much, but commented that his company has "a few acquisitions lined up that will increase the customer base, revenue, SaaS offerings and some tools we currently do not possess."
To address to the opportunities, the company has expanded the current sales team by 200% with plans to keep expanding specific to the dental marketplace it has built its brand in, while seeking to capture new share in markets it currently doesn’t serve. In fact, McDermott cited keeping up with leads and requests for information as some of the company’s biggest challenges. In response, iCoreConnect has expanded its hours to encompass a 16-hour day, making live demonstrations available from 7:00 a.m. to 11:00 p.m., a bigger window that has been met with positive feedback from customers.
It seems that this is only the beginning for what iCoreConnect has in store for the future.
"I would like to point out that we have software currently developed that we have not applied a sales force to as we are transitioning from a development company of SaaS solutions to a sales organization," said McDermott, adding, "There are many opportunities to sell multiple solutions to the same customer increasing our revenue per subscriber dramatically."
From a stock perspective, McDermott is planning for an uplist to a national exchange in 2022, which will provide greater access to investors, capital, analysts, and a more appropriate market capitalization. Right now, he sees the company as undiscovered and undervalued, as measured by a market cap of roughly 2x ICTT’s 2022 revenue estimate. In fact, the Company’s biggest challenges, according to McDermott is facilitating and dispersing information regarding the company to investors in the marketplace.
"This is evident by our market cap and volume, certainly volume has increased lately, and we are grateful for that. We also feel we are not being valued properly compared to other companies in the SaaS space."
When asked about any parting words before ending the call, McDermott offered, "We have had six quarters of consecutive positive recurring revenue growth and we see that trend continuing with greater margins and a lower cost of acquisition per customer as we continue to scale." He concluded, "We are just getting started and are very excited about the prospects of iCoreConnect."
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