Today’s content consumption environment is changing. No more are the days when the majority of families would sit in front of the television and watch the same screen. Today, we have a highly fragmented market that is posing unique challenges. One of the most pressing of these is child safety.
As time passes, we are beginning to understand just how much what our children watch, hear, and do affects them for their entire lives. As a result, parents work hard to make sure that the online social and streaming environment is a safe one for their children.
Although some parental control options are available, these are often convoluted, hard to manage, and inefficient. This is where Grom Social Enterprises comes in. The company was founded with the goal of protecting children in the online community through the use of innovative technologies. Today, we’ll talk about:
- What Grom Social Enterprises does;
- The incredible potential of the market in which the company works; and
- Why investors should be paying attention.
What Grom Social Enterprises Does
Grom Social Enterprises is a media, technology, and entertainment company. The company’s core focus is the delivery of quality kid-safe content to children ages 5 to 16. Moreover, the delivery of this content is done in a safe and secure environment that is easy for parents to monitor.
The GRMM platform is second to none when it comes to entertainment and security for children in an online world. Available through both its website and mobile application, the platform provides children with several benefits, including:
- Engaging Children’s Videos – Grom produces 5 new shows weekly of original content not found anywhere else. It’s wholly owned subsidiary Top Draw Animation (TDA), , a world class animation studio that provides high quality, child-focused video content to some of the largest media companies in the world.
- Social Capabilities – Grom Social is the branded social platform at GRMM. This platform allows children to safely interact with other children of their ages without the fear of predators targeting children via networks geared toward audiences of all ages.
- An Education On Positive Digital Citizenship - Through interaction with Grom Social, children learn about good digital citizenship, including who to be friends with, what to share, and more.
GRMM Revenue
In the past 12 months, Grom Social generated revenue of approximately $8.6 million. The majority of this revenue ($7.8 million) was the result of the company’s Top Draw Animation arm. The company also generated $800,000 through its educational offering.
This is significant considering that the company is trading with a market cap of just around $34 million. Considering a market cap that is only about four multiples of revenue, it’s easy to make the argument that this stock is highly undervalued compared to its peers in the sector.
The Market Potential Is Incredible
Currently, it is estimated that the global parental control market will grow to be worth $3.3 billion by the year 2025. That alone is huge market potential, especially considering the fact that there are no parental control options out there other than Grom that offer a comparable experience, including education on digital citizenship, quality video content, and a child-focused, highly secure social network. Considering this, the company is carving its own niche within the parental control market that could prove to be highly valuable!
Moreover, it’s worth mentioning that the lion’s share of the company’s revenue is coming from Top Draw Animation. Not only does the company stand to take a good chunk of the parental control market in the long run, it is also creating award winning content in the children’s segment of the streaming video industry - one which is expected to grow to be worth $124.57 billion by the year 2025.
Final Thoughts
Grom Social is a stock that’s well worth looking into. As children’s video content consumption habits become more fragmented, parents are finding it harder and harder to keep track of what their children are watching online. Moreover, the world’s active interest in social media leaves many children susceptible to unthinkable dangers.
GRMM is creating solutions to these problems, giving parents the peace of mind that they need while offering children a compelling online experience. With the company already generating annual revenue that adds up to nearly a quarter of its market cap, this highly valued stock represents an opportunity that’s hard to ignore.
Disclaimer:
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance, or achievements expressed or implied by such statements. WFM, Inc. is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. For full disclosure, please visit: http://wwfinancial.com/legal-disclaimer/.
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