DSG Global Inc (DSGT) is one of the new breed of software-as-a-service (SaaS) companies that are dominating the information technology industry.
DSGT provides electronic tracking systems and fleet management solutions – a market projected to reach $35 billion by 2019 - and companies are using DSGT’s patented technology to significantly reduce costs, increase safety and enhance customer satisfaction.
Software-as-a-service (SaaS) is a software delivery method that is completely upending the way software is delivered and used. Residing in “the cloud,” with SaaS you are no longer tied to a desktop or laptop, and can access all the programs you use from any Internet-connected device, like smartphones and tablets.
DSGT has primarily focused on the golf industry where golf course operators manage their fleet of golf carts, turf equipment and utility vehicles remotely using DSGT’s SaaS technology.
DSGT is now a leader in the category of Fleet Management in the golf industry and to date, their technology is used on over 10,000 vehicles on 250 courses worldwide.
The surging demand for DSGT’s product and the company’s multiple revenue streams has allowed DSGT to grow quickly and secure steady revenue.
DSGT’s sector is one of the fastest-growing today, the industry as a whole is on track to grow 50% in the next two years to $93 billion
DSGT has one of the lowest customer churn rates in the business
DSGT’s product was named “Technology of the Year” just three years after the company’s founding
DSGT collects recurring revenue from customers locked into 3-5 year contracts, giving the company steady, predictable and reliable income
DSGT is the leader in one vertical market and is aggressively pursuing their second market now
DSGT’s founder already successfully started and sold one company in the same sector (shares went to $11.50 with more than 2 times the number of shares outstanding)
DSGT’s stock is still relatively unknown to the investing world
SaaS barely existed a decade ago, yet today it has already rocketed to $63 billion in annual sales. Microsoft is now generating over $1 billion a year from cloud revenue, and their cloud business is growing by 128% a year. Of the SaaS companies that went public in 2014, shares jumped an average of 95%.
SaaS makes revenue reliable and predictable. A study by Inventus Capital Partners says that “the most stable and consistently profitable post-IPOs, compared to other service-based tech companies,” are SaaS firms.
Pundits are calling SaaS nothing short of revolutionary:
Golf – The golf market has over $2 billion in opportunity, and DSGT is the current market leader stemming from key relationships with golf cart manufacturers.
In addition to the core Golf related business, DSGT is aggressively expanding into other markets.
Agriculture – Nearly six billion cases of fresh produce are shipped across the United States each year. Starting in August 2015, it will all need to be tracked and monitored every step of the way, from field to market, thanks to the Food Safety Modernization Act, a sweeping reform that creates accountability by increasing traceability. DSG Global Inc. recognizes the produce industry must now move from paper traceability systems to electronic systems and has already established commercial relationships with orchards and vineyards in North America.
Commercial Fleet Deployment – The fleet management market is expected to grow from $12.06 billion in 2014 to $35.35 billion by 2019. GPS tracking is now the norm, but DSGT goes beyond, tracking everything from mileage, vehicle condition, current speed and time spent idling. The company’s technology is already installed on fleets ranging from garbage trucks to cement mixers, throughout the United States and Canada.
An additional lucrative revenue stream is the untapped digital out-of-home (DOOH) advertisements that are placed on the in-vehicle electronic devices. These can be designed as stand-alone ads, or can be programmed to sync with mobile ads on individual users’ smartphones and tablets.
The ad industry publication Adweek says, “Clearly, the intersection of DOOH and smartphones is at a tipping point.” With DSGT’s geo-fencing technology, device users can be fed ads that are specifically targeted to their high-value audience. In exchange for running ads on the devices, customers can both share the revenue and lower their costs for using DSGT’s products. The model is similar to Facebook and Google, who allow use of their software for free because the sites are ad-supported. DSGT projects that every installation will generate $1,000 to $1,500 in advertising revenue annually for each installed unit or an average of $75,000+ per golf course.
DSGT uses this revenue not only to increase their bottom line, but as a way to lower costs to their customers as well.
And More... DSGT has only scratched the surface of viable markets where their award winning technology could be deployed. DSGT is being led into the future with management that are serial entrepreneurs with decades of experience in technology, advertising, sales and software.
Private equity firm Altos Ventures says “the adoption of horizontal SaaS solutions [is] still immature and thousands of vertical applications [are] still to be built.” They go on to say that “we are probably only in the second inning of a pretty long game.”
For more information, please contact Investor Relations at 1.800.441.9304, [email protected]
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