- Pareteum is building on sales and acquisition successes by joining the Russell 3000 Index, granting the company a higher investment profile
- Pareteum’s cloud platform and related services connect millions of people in dozens of countries over numerous networks, with most of the company’s revenues currently coming from Europe
- The SaaS market is expected to expand at a CAGR of 21.2 percent through 2023, and the overall cloud market is expected to grow by 17.3 percent this year, showcasing the rising demand for related products and services
- The company’s second quarter financial report, anticipated next month, is expected to show the company beating analysts’ forecasts for revenue and EBITDA
Communications cloud services provider Pareteum Corp. (NASDAQ: TEUM) established its chops as a growing software as a service (SaaS) enterprise when it joined the Russell 3000 Index earlier this month following the Russell U.S. Indexes’ annual reconstitution. The reconstitution captures the 4,000 largest U.S. stocks each year, and Russell indexes are actively consulted by investment managers and institutional investors. The indexes are used as benchmarks for active investment strategies, according to a news release about the company’s activities (http://nnw.fm/cjyD1).
“We are executing on our growth strategy and we believe inclusion in the index is a testament to the strong performance we have achieved,” Pareteum Chairman and CEO Hal Turner stated in a news release, adding that the index “raises Pareteum’s profile among the investment community, may initiate increased institutional ownership of our stock, and is another step toward our commitment to generating long-term shareholder value.”
Pareteum’s Global Cloud Communications Platform connects millions of people and devices in Europe and other countries, and the company has its eye set on the opportunities posed by the estimated 30 billion devices that will need to be connected and managed through service providers, brand marketing firms and enterprise and Internet of Things (IoT) providers. The company’s recent acquisitions of software platforms Artilium and iPass grant it access to 59 mobile networks in 80 countries that use varied communications channels. Those channels are integrated and turned into value-added services for customers and app developers, according to the company (http://nnw.fm/GlO1V).
The principal part of the platform is Pareteum’s self-developed software and intellectual property. The company has about 40 patents covering its techniques and processes for its cloud software and communications platform product. HPE, IBM, Sonus, Oracle, Microsoft, NetNumber and Affirmed are listed among the company’s services partners.
SaaS partnerships are becoming an integral part of how companies worldwide do business. According to a report by Business Wire, quoted in a Customer Guru industry assessment, 2018 was a poster year for SaaS organizations as a whole, because the year saw several high-growth SaaS companies go public (http://nnw.fm/QOm4W). The report states that the SaaS market is expected to rise at a compound annual growth rate (CAGR) of 21.2 percent between 2018 and 2023.
The report further adds, “We believe that the cloud market is a precursor to the overall SaaS market because cloud is the platform that makes SaaS a reality.” It notes that market research and advisory firm Gartner Inc. predicts that the overall cloud market will grow by 17.3 percent in 2019 and that the cloud system infrastructure services segment will grow by 27.6 percent this year.
Pareteum announced July 1 that its positive preliminary financial results for the second quarter of 2019 show it exceeding analysts’ consensus of $26.2 million for revenue and $4.1 million for adjusted earnings before interest, tax, depreciation and amortization (EBITDA). The official final publication of the company’s quarterly performance will take place August 6, along with a conference call to discuss the results, but, for now, the company states (http://nnw.fm/Ue9wd) that the results “represent significant ongoing revenue growth and bottom-line improvement for the company.”
The company’s first quarter report showed a year-over-year growth rate of 460 percent and an adjusted EBITDA increase of 1,723 percent to $5.2 million (http://nnw.fm/8cJq2).
For more information, visit the company’s website at www.Pareteum.com
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