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.
Selskabsmeddelelse nr. 19-2024 København d. 15 september 2024 Denne meddelelse indeholder intern information Nexcom nedbringer gælden i selskabet yderligere. Bestyrelsen i Nexcom besluttet at gennemføre en kapitalrejsning ved at konvertere lån for at forbedre virksomhedens fremtidige likviditetssituation. Kapitalforhøjelsen er beskrevet i detaljer nedenfor. Tegningen af aktier er foretaget den 15. september 2024 Som det fremgik af meddelelsen af 31. […]
Selskabsmeddelelse nr. 18-2024 København 9. Juli 2024 Selskabet meddelte d. 29 Juli 2024 at Christian Hein Nielsen er pr. 30. april 2024 udtrådt af bestyrelsen og ny formand for bestyrelsen er Torben Tindbæk Haase. Bestyrelsen konstituerede sig d. 9 April 2024 med Torben Tindbæk Haase som formand og samme dag udtrådte Christian Hein Nielsen af bestyrelsen. Disse ændringer i bestyrelsen […]
Nexcom enters new customer agreements and releases new versions of technology in busy H1. HIGHLIGHTS · The revenue grew from TDKK 3,688 in H1 2023 to TDKK 3,831 in H1 2024, mainly as the new major contracts were signed Q2 with expected revenue impact in H2 2024 · Costs remains in control and were further reduced from TDKK -4,021 […]
Selskabsmeddelelse nr. 16-2024 31. juli 2024 Denne meddelelse indeholder intern information. Selskabet har per dags dato forlænget lånebeløb til en samlet værdi af (DKK 15.500k). Lånene har en rente på 6% p.a. Der er for lånebeløb på (DKK 4,018k), en løbetid på lånene indtil 15/9 2024. Der er for lånebeløb på (DKK 11,482k), en løbetid på lånene indtil 24/10 2024. […]
Selskabsmeddelelse nr. 15-2024 29. juli 2024 Christian Hein Nielsen er pr. 30. april 2024 udtrådt af bestyrelsen grundet interessekonflikt. Ny formand for bestyrelsen er Torben Tindbæk Haase. […]
Selskabsmeddelelse nr. 14-2024 København d. 12 Juni 2024 Denne meddelelse indeholder intern information Nexcom har indgået aftale med en betydende nordisk mediekoncern. Nexcom vil levere sin AI drevne automatiserings platform, CX-G som vil besvare digitale kundehenvendelser i flere lande både inden og udenfor EU. ”Vi ser frem til et godt samarbejde og denne aftale viser endnu engang at virksomheder […]
Selskabsmeddelelse nr. 13-2023 København d. 10 Juni 2024 Denne meddelelse indeholder intern information. Nuuday forlænger aftale med Nexcom – EBITDA forventes i niveauet MDKK 2-5 Aftalen omfatter Nexcom’s automatiseringsplatform, som automatiserer arbejdsgange og besvarer digitale henvendelser hos selskaber i Nuuday koncernen. ”Forlængelsen af denne aftale viser endnu engang at anvendelsen af Nexcom’s produkter bliver ved med at skabe værdi for […]
Selskabsmeddelelse nr. 12-2023 København d. 10 Juni 2024 Nuuday forlænger aftale med Nexcom – EBITDA forventes i niveauet MDKK 2-5 Aftalen omfatter Nexcom’s automatiseringsplatform, som automatiserer arbejdsgange og besvarer digitale henvendelser hos selskaber i Nuuday koncernen. ”Forlængelsen af denne aftale viser endnu engang at anvendelsen af Nexcom’s produkter bliver ved med at skabe værdi for vores kunder”, siger Nexcom’s CEO […]
FINANCIAL REPORT Q1 2024 [January 1[st] – March 31[st], 2024] The report has not been audited. Nexcom Starts the year with a 13% growth in revenue HIGHLIGHTS · Q1 2024 revenue showed a 13% growth compared with 2023 at DKK 1.718k, (Q1 2023 at DKK 1.513k). This is an expected increase compared to Q1 2023 revenue as new contracts from […]
FINANCIAL REPORT Q1 2024 [January 1[st ]- March 31[st], 2024] The report has not been audited. Nexcom starts the year with a 13% revenue growth HIGHLIGHTS · Q1 2024 revenue showed a 13% growth compared with 2023 at DKK 1.718k, (Q1 2023 at DKK 1.513k). This is an expected increase as new contracts from Q4 2023 are beginning to contribute […]
Front page > Investment cases > Nexcom
Kapital Partner performs or has within the last 12 months performed corporate finance, market relations, investor relations, Certified Adviser or other advisory activities for the following listed companies: NORD.investments, Biosergen, InterMail, Pila Pharma, Hypefactors, Curasight, Evaxion, Re-Match, Audientes, Mdundo.com, Nexcom.
Del indlægget på sociale media eller på email.