Tuesday 28th January 2014
I've shorted more Globo, this time at 66.5p/shr
In late October last, I used the website, xyo.net, to find out how many times Globo’s, GO!Enterprise app, had been downloaded onto iPhone, iPad, and Android device. The results were detailed on this posting: The very low down on downloads
There is supposedly a margin of error of c. 10%, but even so, Globo’s results were pretty lacklustre compare to those of its peers: Good for Enterprise, MobileIron Mobile@Work, and AirWatch MDM Agent.
The table below details the number of times each of Globo’s and its competitors’ apps had been downloaded across iPhone, iPad and Android devices through to 29th October 2013.
|Total number of reported downloads through to 29th October 2013|
The table below is an updated version of the above, through to 28th January 2014.
|Total number of reported downloads through to 28th January 2014|
In the three months since late October last:
- Good’s, Good for Enterprise, downloads have increased by 126,000;
- MobileIron’s, Mobile@Work, downloads have risen by 92,000;
- AirWatch’s, MDM Agent, downloads have grown by 87,000;
- Globo’s, GO!Enterprise, downloads have gained by 1,400.
Globo’s growth in downloads is less than 500 per month. Why is it so paltry?
One reason may be that Globo apparently also offers its product to download from its GO!ES server directly:
“... GO!Mobile Client is distributed form (sic) GO!Enterprise server to end users without the need to have an app store account by utilizing Enterprise Licencing options provided by most OS vendors such as Google, Apple, etc.”
So, can anyone advise if Globo has had more success through this route than the limited success it has seemingly had with the app store path? If so has the company quantified this? One method to quantify this may be the following ...
This morning the group indicated that it had generated GO!Enterprise related sales of “... close to €31 million” in FY 2013. This product costs c. $700 for 10 devices per annum. That is $70 per device or c. €51 per device per annum. This is a gross price and will not include the cut of a distributor nor reseller. Nonetheless, €31 million in revenue at c. €51 per device, means c. 608,000 devices. Given that less than 8,700 devices have downloaded the GO!Enterprise app (see above), that would mean just 1.4% of Globo’s customer base has used the app approach. Or put another way, it must mean that 98.6% of Globo’s customers use the server approach. Is this realistic for a customer base which must be weighted towards SMEs which would likely prefer the low IT approach via simply downloading the app?
Further, as Globo’s peers look to be achieving such strong growth via the app store route, why does Globo not also attempt to tap into this more?
More successful apps ...
A recently published research note by Ennismore Investment Management is worth a read (found here). Amongst the information that Ennismore provide, they highlight a case study which a distrubtor, Computerlinks, uses in its promotion material for Globo’s GO!Enterprise product. The case study centres on a mobile app developed for the Theocharakis Foundation, an arts centre in Athens: Theocharakis_foundation.pdf
As Ennismore observe, this is a curious promotion. As far as I can tell, the work Globo performed for the Theocharakis Foundation centres on an app to inform customers of events and offers, as opposed to any Bring Your Own Device (BYOD) / Enterprise Mobility solution, which is what the case study is attached too.
|Theocharakis Foundation app|
And another thing ...
In my quest to find references from Globo’s customers vis-à-vis GO!Enterprise, the only customer which seems prepared to endorse the actual product is a company called, Gregory’s Food Service Group.
Indeed, Ingram Micro, uses Gregory’s testimonial to market GO!Enterprise:
|Gregory's - Customer Testimonial as used by Ingram Micro|
Source: Ingram Micro
Gregory’s is a coffee merchant in Greece, Albania and Romania. It must also be the most tech savvy coffee merchant in the whole of Greece, Albania and Romania: Gregory's
Gregory’s appetite for technology is so strong that it has testified for three different Greek IT companies’ products, including Globo’s. The others being:
- Data Team - a Greek based provider of "Document Automation Technologies" for "Enterprise Re-engineering."
- Qualco - a Greek based provider of "enterprise-level, industry-specific software solutions."
|Gregory's - Customer Testimonial as used by Data Team|
Source: Data Team
|Gregory's - Customer Testimonial as used by Qualco|
I expect Gregory's gets a discount for all these testimonials.
Disclaimer: The information, discussions or topics referred to on this blog should in no way be considered “advice” to buy or sell anything. The information which may be referred to is freely available in the public domain and where required the source of information is referenced to for verification. While every effort has been made to ensure the veracity of any information contained within this blog, the author accepts no responsibility for the accuracy of any information contained within this blog or for the sources of information which may be referred to. Readers are responsible for their own actions and interpretation of the information contained within this blog.
It might pay to research more carefully in future. According to the company's recent RNS they sold 1,200 GO!Enterprise box licences in the US in 2013, which is not inconsistent with the data you have compiled on App downloads. Box licences, however, only represent a small proportion of Globo's GO! Enterprise revenues, the bulk of which currently derive from South East Europe and the Middle East. These revenues are primarily generated from development contracts and consultancy linked to the sale of GO!Enterprise system licences to the corporate sector.ReplyDelete
As the company made clear in its recent RNS, retail sales into the US will be the focus of the company's marketing efforts in 2014, but development and consultancy revenues will continue to form a significant proportion of GO!Enterprise revenues for the foreseeable future.
Of course both you and Ennismore are talking your own book in these so called "research" pieces, which are nothing of the sort: they are blatant attempts to scaremonger with a view to dropping the price of GBO allowing you to buy back your short at a profit.
FYI I work for a company that sells mobile apps to businesses and we don't sell through any of the app stores, it doesn't have to work that way, plus you are giving away some of your profits to the app stores, in Apples case a considerable amount.ReplyDelete
Also I noticed that xyo.net shows as being in Beta, are you sure their figures are accurate?
Do you have the download figures from Fujitsu's app store?ReplyDelete
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