Front page > Investment cases > Nexcom
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.
København 3 April 2024 Selskabsmeddelelse nr. 09-2024 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 Frank Thy 2. Årsag til indberetningen a) Stilling/titel Interim CFO b) Første indberetning/æn- dring Ændring 3. Nærmere oplysninger om udstederen, […]
København, den 27. marts 2024 Selskabsmeddelelse 08-2024 Referat af ordinær generalforsamling i nexcom A/S Onsdag den 27. marts 2024, kl. 08:00, afholdtes ordinær generalforsamling i Nexcom A/S, CVR-nr. 20 34 80 46, hos Mazanti-Andersen Advokatpartnerselskab, Amaliegade 10, 1256 København K. Af selskabets kapital stor DKK 9.402.662,50 var DKK 4.114.554,00 repræsenteret på mødet, herunder ved afgivelse af stemmer på forhånd. Af selskabets […]
København 27 Marts 2024 Selskabsmeddelelse nr. 07-2024 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 Rolf Adamson 2. Årsag til indberetningen a) Stilling/titel CEO b) Første indberetning/æn- dring Ændring 3. Nærmere oplysninger om udstederen, deltageren […]
København, 27. marts 2024 Selskabsmeddelelse nr. 06-2023 Nexcom A/S har i henhold til Markedsmisbrugsforordningens artikel 19 modtaget følgende notifikation om ledende medarbejderes og/eller disses nærtståendes transaktioner. Denne meddelelse indeholder intern information. 1. Nærmere oplysninger om personen med ledelsesansvar/personen med nær tilknytning til denne a) Navn Frank Thy 2. Årsag til indberetningen a) Stilling/titel CFO b) Første indberetning/æn- dring Første indberetning […]
Selskabsmeddelelse 05-2024 København, den 12. marts 2024 INDKALDELSE TIL ORDINÆR GENERALFORSAMLING I NEXCOM A/S ONSDAG DEN 27. MARTS 2024, KL. 08:00 DAGSORDEN OG FULDSTÆNDIGE FORSLAG 1. Bestyrelsens beretning om selskabets virksomhed i det forløbne år 2. Fremlæggelse af årsrapport til godkendelse Bestyrelsen foreslår, at årsrapporten for 2023 godkendes. Årsrapporten er tilgængelig på selskabets hjemmeside. 3. Beslutning om dækning af tab […]
Nexcom fremlægger årsrapport for 2023 og guidance for 2024 med positiv drift Selskabsmeddelelse nr. 04-2024 København 12. marts 2024 Denne meddelelse indeholder intern viden. Nexcom’s årsrapport for 2023 blev i dag godkendt af bestyrelsen. Hovedpunkter · Koncernomsætningen steg med 45% til MDKK 11,5 (2022: MDKK 7,8). · Et forbedret primært driftsresultat (EBITDA for koncernen) på MDKK -3,9 (2022: MDKK -14,0). […]
Selskabsmeddelelse nr. 03-2024 København d. 6 februar 2024 Generalforsamlingen i Nexcom var tidligere annonceret til 29 marts 2024. Denne flyttes til 27 marts 2024 og som følge af dette flyttes også udsendelsen af selskabets årsrapport fra den 15 marts til den 12 marts 2024. […]
Selskabsmeddelelse nr. 02-2024 København d. 27 februar 2024 Denne meddelelse indeholder intern information AI vil stå for taxi-bookinger i Norden og Tyskland Fremtiden byder på flere og flere stemmebaserede AI-løsninger, og taxibranchen er ingen undtagelse. Finn Frogne A/S, som er Nordens største leverandør af it-løsninger til taxibranchen, og Nexcom har indgået en grossistaftale om levering af Nexcom’s AI styrede […]
Selskabsmeddelelse nr. 01-2024 København d. 26 Marts 2024 Nexcom's AI vil stå for taxi-bookinger i Norden og Tyskland Fremtiden byder på flere og flere stemmebaserede AI-løsninger, og taxibranchen er ingen undtagelse. Finn Frogne A/S, som er Nordens største leverandør af it-løsninger til taxibranchen, og Nexcom har indgået en grossistaftale om levering af Nexcom’s AI styrede stemmerobot, VIBE – Voice Interface […]
FINANCIAL REPORT Q1-Q3 2023 [January 1st – September 30st, 2023] The report has not been audited. Copenhagen Oct. 26th, 2023. Nexcom continues delivery on strategy for 2023. Q3 2023 HIGHLIGHTS · Nexcom could announce a new contract with a Danish based company to deliver a voice-based robot. · Revenue of DKK 5,792k, (vs. DKK 5,910k in 2022), is […]
Front page > Investment cases > Nexcom
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