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For large companies with several thousand or hundreds of thousands of customers, automated systems are needed to handle customer enquiries by telephone or e-mail, for example – from the actual contact with customers to the execution of customer wishes and orders. Nexcom provides such IT systems to B2C companies in particular, in the fields of telephony, insurance, energy and property management. Nexcom’s customers are from Scandinavia, Europe and North America and include among others Telenor in Denmark and the USA, Telia in Denmark, Norway and Lithuania, and Groupon, RealPage and Lash in the USA.
Nexcom‘s products consist of three systems:
eTray supports, optimizes and automates workflows, handles all written inquiries (e-mails, SMS, letters, contracts, faxes, etc.) and distributes them to relevant employees.
RevealCX web-based quality monitoring platform optimizes and streamlines corporate customer contact centers.
RevealCX Boost is an AI-assisted system that enhances RevealCX through “voice-transcription” technology and machine learning
During 2021, Nexcom had big ambitions and the company scaled up the sales department to drive further growth through increased sales of their SaaS solutions to a larger customer base. However, in 2022, the company experienced that organizations, as a result of market turmoil, first postponed investments in new SaaS systems and then canceled their projects. This contributed to Nexcom adding only one new company to its customer base in 2022. The company has therefore shifted its focus from expansion and strong headcount growth to achieving a positive cash flow with a focus on keeping costs under control – a trend seen in both larger and smaller tech companies around the world.
The decisive factors for a positive share price development are therefore that the company manages to reduce costs further, retain their existing customer base and at the same time convert more customers from pilot projects to sales from their sales pipeline than was the case in 2022.
In Q2 2022, Nexcom raised 6 MDKK, where the focus was on cutting costs, and in April 2023, the company seeks to raise an additional 7.5 MDKK for continued operations. It is important for the investment case that Nexcom manages to create a positive cash flow so that they are not dependent on new capital from outside.
Price triggers:
Risks:
Potential takeover candidate
In the short term, it is Nexcom’s low valuation that largely drives the investment case. With a market capitalization of DKK 30m (price DKK 2,12), Nexcom has a low valuation (P/Sales ’23 of 2-2.7x). The interesting thing about Nexcom’s pricing is that for larger US companies such as RingCentral or Five9, it may make financial sense to buy Nexcom’s technology solutions and spread the products to their own customer bases, even though Nexcom itself is not profitable.
Towards April 2023, the share price may come under pressure if uncertainty arises as to whether Nexcom can succeed with its capital raising. On the other hand, a solution to the capital need will ease the pressure on the share price.
No churn – provides a basis for long-term growth
Nexcom has had no churn (loss of customers) for 10 years. This indicates stickiness and a product that customers are happy with. The customers consist of international companies such as Groupon and Telenor. There is therefore also a good basis for Nexcom to increase its sales to existing customers by moving with customers to new countries (such as with Telenor in Denmark and the US) and increasing the use of new products (such as RevealCX Boost). In addition, there is a large potential for new customers in the US, where there are 11,000 potential customers.
AI-powered products
In 2021, Nexcon finalized their AI product (RevealCX Boost) with Telenor as the first customer. RevealCX Boost is a superstructure / add-on product for RevealCX that significantly improves RevealCX’s analysis of the customer management of the companies’ customer handling (companies’ support / customer centers). RevealCX Boost does this by assessing all data (customer contact data) instead of just a sample. According to Nexcom, it is a unique product, which should therefore boost sales. The development of RevealCX Boost also shows that the company owns AI products and has know-how on AI development that is relevant in the fight for new customers and in a potential acquisition of Nexcom.
Selskabsmeddelelse nr. 13-2023 København d. 15 September 2023 Nye Aktier optaget til handel. I forlængelse af Selskabsmeddelelserne af henholdsvis 9. August og 28. August 2023, forventes aktierne fra de netop gennemførte kapitalforhøjelser optaget til handel den 19. august 2023. De nye aktier optages til handel på Nasdaq First North Growth Market Denmark under ISIN-koden for Nexcom's eksisterende aktier (DK0061417144). […]
København 13 September 2023 Selskabsmeddelelse nr. 12-2023 Denne meddelelse indeholder intern information Nexcom har indgået aftale med en dansk virksomhed omhandlende levering af stemmestyret A.I. Parterne er enige om ikke at offentliggøre aftalen i detaljer, men aftalen er flerårig og øger Nexoms ARR med ca. 3%. Dertil indeholder aftalen en variabel afregning baseret på hvor mange opgaver A.I.’en gennemfører. ”Dette […]
København, 28. august 2023 Selskabsmeddelelse nr. 11-2023 Nexcom A/S har i henhold til Markedsmisbrugsforordningens artikel 19 modtaget følgende notifikation om ledende medarbejderes og/eller disses nærtståendes transaktioner. 1. Nærmere oplysninger om personen med ledelsesansvar/personen med nær tilknytning til denne a) Navn Valore Capital Group ApS 2. Årsag til indberetningen a) Stilling/titel CEO Rolf Gordon […]
København, 28. august 2023 Selskabsmeddelelse nr. 10-2023 Nexcom A/S har i henhold til Markedsmisbrugsforordningens artikel 19 modtaget følgende notifikation om ledende medarbejderes og/eller disses nærtståendes transaktioner. 1. Nærmere oplysninger om personen med ledelsesansvar/personen med nær tilknytning til denne a) Navn Erhvervsinvest ApS 2. Årsag til indberetningen a) Stilling/titel CEO Rolf Gordon Adamson b) Første indberetning/æn- dring […]
Selskabsmeddelelse nr. 9-2023 København d. 28 August 2023 Denne meddelelse indeholder intern information Nexcom nedbringer gælden i selskabet yderligere. Bestyrelsen i Nexcom besluttet at gennemføre en kapitalrejsning ved at konvertere lån fra ledende aktinærer og medarbejdere for at forbedre virksomhedens fremtidige likviditetssituation. Kapitalforhøjelsen er beskrevet i detaljer nedenfor. Tegningen af aktier er foretaget den 28. august 2023 Strategic Investments […]
Copenhagen Aug. 25th 2023 The report has not been audited. Nexcom secures capital structure, significantly reduces debt and maintains financial outlook for the year. HIGHLIGHTS · New Chairman of the Board appointed at the annual shareholders meeting. Christian Hein Nielsen is now Chairman. · The capital increase in March 2023 has been successfully completed and resulted in new shares […]
København 9 August 2023 Selskabsmeddelelse nr. 8-2023 Denne meddelelse indeholder intern information Nexcom gennemfører kapitalforhøjelse og nedbringer gælden i selskabet væsentligt. Bestyrelsen i Nexcom har den 9. august 2023 besluttet at gennemføre en kapitalrejsning samt konvertere lån fra aktionærer, medarbejdere og långivere for at forbedre virksomhedens fremtidige likviditetssituation. Kapitalforhøjelsen er beskrevet i detaljer nedenfor. Strategic Investments A/S, den største aktionær […]
25. Juli 2023 Ændring i Finanskalender Nexcom A/S ændrer datoen for offentliggørelse af H1 periode regnskab fra 3 August 2023 til 25 August 2023. På baggrund af at selskabet har en igangværende rekruterings process af en ny CFO, og planlagt bestyrelsesmøde ændrer selskabet derfor datoen for offentliggørelse til d. 25 august 2023. […]
København, den 1 Juni 2023 Denne meddelelse indeholder intern information Nexcom foretager væsentligt opkøb af talegenkendelses-teknologi og øger ARR med 28% I et strategisk vigtigt træk for virksomheden, har Nexcom erhvervet en dansk udviklet talegenkendelses-teknologi, samt kundekontrakter fra MIRSK Digital ApS og øger dermed ARR med ca. 28% til ca. DKK 8.8 mio. Med opkøbet tager Nexcom endnu et vigtigt […]
Copenhagen April 24th 2023 Company Announcement 4-23 This communication contains inside information regulated by the European market abuse regulation, (MAR) In the Annual Report 2022 it was informed that a conversion of loans regarding debt to management and shareholders was a possibility as per March 31, 2023. The Board of Nexcom have March 31, 2023, decided to convert loans from […]
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