Sign up Australia
Proactive Investors - Run By Investors For Investors
Why invest in 9SP?
9 Spokes International Ltd: THE INVESTMENT CASE
INVESTMENT OVERVIEW

9 Spokes International paves way for strong revenue growth as it expands globally

The onboarding rate of small business onto the platform continues to accelerate as banking partners adoption increases.
9 Spokes smart phone screen
INVESTMENT OVERVIEW: 9SP The Big Picture
The company is signing up about 1000 businesses every 5 days, a trajectory management is happy with

9 Spokes International Ltd (ASX:9SP) has made an outstanding start to 2018 with the signing of important new partners.

This has included Royal Bank of Canada (RBC) (TSE:RY) where the group is providing a white label version of the 9 Spokes platform for Ownr, a product launched by RBC affiliate, RBC Ventures Inc.

READ: 9 Spokes wins contract with Royal Bank of Canada affiliate

9 Spokes chief executive officer Mark Estall said: “The onboarding rate of small business onto the platform continues to accelerate as our banking partners adoption increases.”

Importantly, this contract builds on a previous relationship where the group was providing the white label platform for RBC’s MyBusiness Dashboard.

9 Spokes has a wide range of products that fit under the fintech banner, but looking at Ownr specifically, it provides new businesses with simple, affordable sole proprietorship business registration and incorporation services.

Broad range of services targeting multibillion-dollar market

9 Spokes provides an online Software-as-a-Service (SaaS) application platform and store, allowing businesses to access a wide-range of third-party applications and online services.

This assists in meeting their needs for core business activities such as accounting, inventory management, booking and scheduling.

Estall said: “We are signing up about 1000 businesses every 5 days, a trajectory we are very happy with.

“We are seeing improved efficiencies in campaigns as well, receiving deep insights into the campaigns and their effectiveness.”

The 9 Spokes platform uses data from these applications to present customers with at-a-glance metrics that monitor and help manage business performance.

The global small to medium enterprise (SME) market for online applications is worth in excess of US$40 billion.

9 Spokes looks to simplify through combining data

9 Spokes has developed technology that simplifies the buying approach and enhances the usefulness of online applications.

It achieves this by extracting and combining the data from multiple applications to give customers better tools with which to run their business.

The 9 Spokes smart dashboard enables SMEs to connect their software to one dynamic interface, giving them a clear overview of their business.

Access through multiple devices

In keeping with the need for mobile access to information, the technology allows users to access data and new metrics across key areas, from any device at any time.

Businesses can integrate their supported software into the dashboard as well as choose from a selection of recommended and accredited apps to suit their industry.

The smart dashboard from 9 Spokes is available as a direct model to small businesses and as a white labelled platform that banking partners can offer to their SME customers. 

Blue-chip client base

9 Spokes’ product offerings have attracted strong interest from major international financial institutions, such as Barclays PLC (LON:BARC) in the United Kingdom.

It has launched the service as a white-label offering to their own SMEs.

Offering services direct to SMEs through 9 Spokes Direct and also through white-label channel partners has been an important part of its success.

Early entry into channel partnerships

9 Spokes delivered on its implementation milestones with Barclays, Suncorp Group ltd (ASX:SUN) and Propel by Deloitte channels, as well as its UK 9 Spokes Direct Platform.

All four platforms went live in 2017 and have proven their worth more than 12 months later.

Each channel represented lengthy, complex technology projects with large, established enterprise partners.

Success at this early stage paved the way for quick progress in terms of winning new contracts, both direct and white label, as well as achieving contract renewals.

READ: 9 Spokes International focuses on building channel partners in the banking sector

The company is also finding that the relationships it has built with major financial institutions and SME's have resulted in opportunities to upsell new products.

Expanding its position overseas

As well as expanding its relationship with the Royal Bank of Canada, the company has made inroads into other overseas markets.

Estall said: “Our decision to enter the US and Asian financial sectors is proving to be well timed.

"We have received incredibly positive responses from large banks that our proposition is well positioned to serve their requirements."

In Asia, the company signed a Memorandum of Understanding with the Overseas-Chinese Banking Corporation (OCBC) (SGX:039).

OCBC is the second largest Singapore bank with a market capitalisation of about Sin$53 billion.

With the Australian dollar and the Singapore dollar broadly at parity, this illustrates the size of the organisation.

Bank of New Zealand comes on board

In March, the Bank of New Zealand (BNZ) signed a contract with 9 Spokes for the group to provide a white label version of its platform.

READ: 9 Spokes signs contract with Bank of New Zealand, hits revenue guidance

The BNZ contract will see the 9 Spokes platform integrated into the BNZ’s business banking customer journey.

BNZ is a wholly-owned subsidiary of National Australia Bank (ASX:NAB) and it is the first Australasian bank to partner with 9 Spokes.

The bank has more than 130,000 small and medium business customers.

From a financial perspective, the contract resulted in management meeting the range of annualised recurring revenue (ARR) guidance for the March quarter of between NZ$6 million and NZ$7 million.

ARR supported by established licence fees

ARR growth in 2018 will be anchored by licence fees from RBC and the Bank of New Zealand.

Given the former only went live on November 1, 2017, it will make a much larger contribution in the coming 12 months.

View full 9SP profile View Profile

9 Spokes International Ltd Timeline

Related Articles

1510592057_gas-pipeline.jpg
November 14 2017
In the quarter, the power and electromechanical segment contributed revenues of $16.7 million,
Flow chart of the Hazer Process
March 21 2018
The Hazer Process could disrupt the $100 billion hydrogen production market.
electric vehicle charging
July 04 2018
AMP wants to add 25 sites in Greater London and extend its reach into the North-West around Liverpool and Manchester

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use