GCICrimson Tide shares jump on first US contract
( ), the company behind field service management software platform mpro5, has announced its first subscription contract win in the United States.
The 3-year contract is worth £0.25m and will see mpro5 implemented in a building-wide IoT project in the customer's offices in San Francisco.
Specifically, mpro5 will be used to initiate smart actions from sensor readings in the customer's offices, which will be the first wider implementation of mpro5 in the US. The customer is a global supplier of network solutions, and the installation will extend mpro5's reach to its own existing and prospective clients.
Chairman Barrie Whipp commented: "The contract win verifies our strategy to standardize mpro5 and productize it for sale and use with third-party hardware and software. We hope that mpro5 will become an integral part of our client's IoT strategy, allowing its partners to add mpro5 as an option in their sales process."
View from Vox
Crimson Tide's first US contract is a significant milestone and a validation of the company's long-term goal of expansion into North America. Markets welcomed the news, sending Crimson shares up 14.2%.
Crimson's US client is a large provider of IT networking with a global client base. Crimson's mpro5 solution will therefore gain exposure to a global network of companies, greatly expanding Crimson's potential customer base.
The new contract builds on Crimson's relationship with Cisco Meraki, and is a first in a pipeline of 20+ opportunities the company has reported it has in the US.
Earlier this month, Crimson announced a 30% uplift in revenues to £5.3m in a preliminary FY update. Year-end cash stood at £3.5m and annual recurring revenue going into 2023 was £5.8m, compared to £3.8m in 2021. Churn remained below 5% and gross margin was maintained at 84%.
Outside the US, Crimson scored significant contract wins in 2022 with new and existing clients, particularly in catering and facilities management. The company noted an "exciting new client in the utility sector" as well as a large contract renewal with a major UK retailer.
Crimson said it was "well structured and well funded" for future growth, and that its full balance sheet for FY22 will be available in early April. We expect the full unaudited results to reflect the company's momentum into 2023. Crimson, so you do not miss the news.
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