Vault Intelligence Limited (ASX:VLT) Director, Robert Kirtlan discusses the company's health, safety and risk management software, client adoption and strategy.
Anna Napoli: Hello. Anna Napoli for the Finance News Network. Joining me now from Vault Intelligence is Director Rob Kirtlan. Rob, welcome to FNN.
Robert Kirtlan: Thanks for having me Anna.
Anna Napoli: First up, can you give us an introduction to the company?
Robert Kirtlan: Very quickly, Vault is a technology company and we provide software, which manages risk, environmental health, and safety issues for companies.
Anna Napoli: Rob, what's the size of the market and how do companies typically manage risk compliance and OH&S?
Robert Kirtlan: Good question. Answering the second part first, most companies use Excel Spreadsheet. This is an industry all businesses generally use paper solutions and then went to Excel Spreadsheet. Some of them built their own solutions. Then companies like ours came along and have been building software based solutions, very sophisticated solutions. The addressable market in Australia alone we think is a billion dollars. We think right now that probably only 5 to 10 per cent of companies that should have a solution like ours do have one.
Anna Napoli: Rob, let's talk about your software. What does it do?
Robert Kirtlan: Fundamentally it manages all of the issues around risk and safety, and they're significant because we're talking about people, assets, compliance, incidents, and management of all of those matters are significant. They're complicated and they're regulated, so they have to be done the same way, or the right way.
Anna Napoli: How easy is it to use?
Robert Kirtlan: Our product is straightforward to use. We provide training to those using it. Generally, people who are at the front end of the product, as in the workers, will find that all of our products are very simple, very intuitive, menu driven, checklists for example, where they go through their various routine tasks on a daily basis. Then that information is sent back usually to some sort of safety officer who will get all of that data on a dashboard and go through it and make sure that whatever tasks they need to do are being done.
Anna Napoli: Okay. What about the business case?
Robert Kirtlan: From board to employee, the business case is substantial. From a board point of view, boards are there to not just drive businesses, but also to ensure that they're compliant. Secondly, for the management staff who are in charge of safety and risk mitigation, again, the software makes everything so simple because it's a productivity tool. Everything becomes easier. From a worker's point of view, I think it's not a feel good statement. We do mean this that we want people to go home safely.
Anna Napoli: Does this software integrate with other systems? How long does it normally take for a company to sign on?
Robert Kirtlan: Again, several different answers for that. For the enterprise system our sales lead time could be anywhere from three months to 12 months depending on the size of customer. Most of the bigger customers will go to tender. For our app suite, yes it will talk to other systems, but what we've released, or in the process of releasing I should say, is our new, what we think, is disruptive technology, which is around our lone worker app, which applies to people who are working on their own. That is driven from either an app on their phone, or on the Samsung 3 Watch. We've been working with Samsung in a collaborative way to develop this technology, which is brand new and we think will be very disruptive within the sector.
Anna Napoli: Rob, can you tell me who your customers are?
Robert Kirtlan: A very broad range. We have over 400 customers currently. That list is growing. We have customers on our books who range from Visy, to Toll, to Boeing here in Australia, to OceanaGold. We cover 30 odd industries. A lot of them are household names.
Anna Napoli: Now to your financials and strategy. How are you progressing there?
Robert Kirtlan: As far as our growth in annualised recurring revenue, we're running at about 70 per cent per annum at the moment. It's up substantially since we came to market two years ago. We think that number’s going to go up as we move more into, not just the enterprise sales and grow and come up with new initiatives there, but we also think that our small business suite, which is an app driven solution only for small businesses that'll be a digital solution, so we'll sell that straight off the website. Then of course there's the lone worker and the watch, which we think is a bit of a wild card.
Anna Napoli: Rob, can you tell us about this Samsung Watch?
Robert Kirtlan: What it does for us with this particular technology in our particular sector, is we hook into Samsung and their health apps, so we can send a worker out there and we can track them. We can have them reporting back. We know if they've had a collision. We know if they've fallen off a ladder. We can monitor their heartbeat. We'll be able to monitor in the future with the S4 their blood pressure. We can geo fence them, so they don't go into areas where they're not qualified to be in. It's almost unlimited what we can do with this particular technology.
Anna Napoli: Finally, Rob, why should investors consider adding Vault Intelligence to their portfolios?
Robert Kirtlan: Proven company. Proven product. Revenue ready. We should be up about the four million plus mark this year. Genuine growth in our recurring revenue. Real customers and disruptive technology. I know investors want to hear that, but we think that when we launch this watch with Samsung in about a month's time it's going to get an awful lot of attention because our pre-sales work around the lone worker app and the lone worker watch has I guess, floored us with the interest that we're getting from customers out there.
Anna Napoli: Rob Kirtlan, thank you for the update.
Robert Kirtlan: Thanks.