IRI has 174.6M shares on issue so at 35c trades at a modest market capitalisation of $61M. With circa $21 million in the bank (31 Dec 2023), Enterprise Value sits at more modest $40M. The company prefers talking total contract value which was $68.5M in 2023, while subscription revenue $68.3M. Total contract value was $40.5M (mid point in guidance) in 1H 2024 was represented growth of 4%.
The company offers collaboration and transaction and communication technology monitoring tools, that assist clients in the ongoing assessment of user experience and performance management. The clients are typically large enterprise blue chip customer.
It appears the move to cloud and away from on-premise or dedicated hosting is hampering IRI's core collaboration focused business as the likes of Amazon/Microsoft offer similar monitoring tools to IRI. The hyperscale's also don't share the data via their API's as readily as on-premise or dedicated hosting environments . IRI is pivoting towards more complex technology environments, but those API's to the hyper scalers probably need to improve or the value in IRI's monitoring products degrades.
The transaction focused part of IRI is being hampered by the pace of adoption of new technologies, the cloud layer and the emergence of new competitors as various countries adopt new real-time payments systems.
The communication segment revolves around HP Non stop systems. The challenge remains that over time a number of customers are migrating away from HP NonStop to other platforms as well as client opportunities to consume infrastructure-as-a- service.
The big issues appear to be the move to cloud reduces the ability to access data as readily as on-premises environments. Its difficult to arrive at an investment thesis just at the moment.
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