Manalto Ltd (ASX:MTL) has increased its potential to generate sales revenue as Philippines telco, Globe Telecom, has commenced selling Sóshlr to its customer base.
The milestone comes after Manalto signed a commercial agreement with Globe in April, 2016.
The Globe sales and marketing team can now commence actively promoting and distributing Sóshlr to their enterprise and small and medium business customer base.
Manalto recently achieved a similar milestone with Telstra after also signing an initial agreement in April, 2016.
Anthony Owen, CEO, commented: “Manalto is delighted to work with Globe Telecom to extend Sóshlr to their customers to better manage their social media across multiple platforms.
“It gives the company another first to market entry into the region.”
Manalto were able to sign the initial agreement with Globe thanks to Sóshlr being formally certified by cloud service marketplace AppDirect, a network reaching 30 million small businesses worldwide.
Under the agreement signed with AppDirect, Manalto will receive revenue through a 70/30 revenue sharing model share arrangement from each license sold.
Sóshlr is offered through a range of base packages and upsell paths - base packages range from ₱235 to ₱3,290 per customer per month ($6.60 AUD to $93.00 AUD per month).
Sóshlr will add further premium features that will add to base license fees, enhancing value, retention and revenue for resellers.
As part of the agreement, Manalto will provide account management and help desk support.
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 sales goals
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).
The commencement of sales to Globe customers further validates that the initial agreements signed are advancing to commercial fruition as expected.
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.
It is anticipated that initial sales will steadily build as the Sóshlr brand gains recognition and trust amongst Globe’s SME customer base.
News flow surrounding the signing of new clients and distribution agreements will continue to have potential to act as catalysts for the stock.
The global social media analytics market is set to grow to US$5.40 billion by 2020 from US$1.60 billion in 2015.
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