Manalto Ltd (ASX:MTL) has achieved a major milestone towards commercialisation of its social media management product, Sóshlr.
The achievement follows an agreement signed with Telstra in April 2016.
Manalto has signed deals with several other large telcos and host companies all of which will commence sales of Sóshlr over the coming weeks.
Anthony Owen, CEO, commented: “As the first telco to offer Sóshlr, the company looks forward to the channel growth through Sóshlr sales to support the internal revenue goals.”
Manalto provides companies with software to manage social media, it has two products, Sóshlr and Enterprise Solution.
Sóshlr is targeted at SMEs and Enterprise Solution is targeted at larger businesses.
Sóshlr is distributed exclusively via channel partners to SMEs and customers may purchase 1-50 licenses.
Enterprise Solution is sold directly to larger enterprises with customers purchasing 50+ licenses. The Company has plans to develop an Enterprise distribution channel to make available the solution through channel partners.
Revenue is generated through a subscription based model where customers pay a monthly fee depending on the numbers of licenses required.
Manalto recently acquired Hearis, a small Australia based social media management platform, which will grow its existing customer base and revenues in Australia.
Sóshlr pricing and sales goals
Sóshlr offers a range of base packages and upsell paths. Suggested retail prices range between US$36 and US$3,000 per customer per annum and final pricing is at the partner’s discretion.
Manalto has plans to roll out new premium add-on features for its Sóshlr product that will add to the base license fees.
Sales goals for Sóshlr for FY17 include:
- Securing four additional agreements with major telcos or hosting companies with an estimated addressable market of 10 million SMEs (Q2, FY17); and
- Expanding operations in Europe, Asia and India targeting a total additional addressable market to 20 million SMEs (Q4, FY17).
Sóshlr being available for sale on Telstra’s cloud marketplace is a critical step for Manalto as it strives towards its sales goals and generating revenue from partnerships.
With partners signed to date, Sóshlr will be actively promoted to an estimated addressable market of 15 million SMEs.
The opportunity for Manalto is to grow sales by growing its addressable market, which comes from continuing to sign distribution agreements.
Manalto estimates its total market opportunity to be more than US$200 million per annum in revenue.
Manalto remains leveraged to the high-growth social media industry and continues to expand the distribution and sales channels of its two social media products.
The company is in a growth phase with two established competitive products that it can sell through vendors, cloud platforms and resellers.
News flow surrounding the signing of new clients and distribution agreements will act as catalysts for the stock.
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