CorvisaCloud now has grabbed TWO top salespeople from leading contact center vendor InContact (SAAS). This includes a former VP of Sales and now also a former Distric Manager who also has served as the “Senior Custonmer Success Manager" at SAAS. Both are based in Texas and joined CorvisaCloud in recent weeks. The latest to jump ship says “CorvisaCloud is about to revolutionize the cloud contact center market.” SAAS is valued at nearly $500M without ever earning a penny.
CorvisaCloud has a new Executive VP of Sales. He is a former VP of Sales for InContact (SAAS), a major provider of contact center software. During his year and a half long tenure as chief of Central division sales, at SAAS, annual sales increased from about $110M to a level that is thought now to be $160M plus. Share price went up during the same period about 50%. SAAS stock is again nearing the $500M mark for a company that has never earned a dime. Did he jump ship for a better product?
Absolutely NOT starting from scratch. A top notch staff has been put together; several real trade shows are under their belt; some reputable customers are on board; and if you can believe the company they have what they believe to be the best call center platform on the market. Having said that, technology changes and they are working to keep their products ahead of the game. They just hired their first real sales staff. Some job sites also have just listed a number of sales people not showing up on the Corvisa site. This is either to replace early hires who didn't work out OR perhaps the sales effort is showing signs of working. In any event, I would think Mr. Market would be more interested in a product that is SELLING rather than one that just looks good. As soon as they have that, I am all for them making a full court blitz to a market interested in paying a premium.
They said they were going to do it. Doesn't it make sense that they should wait a couple of quarters and have some growth to brag about?
Happy to see the company making public that it still thinks these tax benefits are valuable assets. They are welcoming a dialogue with shareholders about their value and how to protect them. This sounds great!
“Derrek Harter has more than 10 years of experience in a diverse set of positions working for both Fortune 500 companies and startups. Currently he is Enterprise Executive at CorvisaCloud. Prior to CorvisaCloud, Derrek held managerial roles at SocialVolt, CenturyLink (formerly Embarq) and Sprint, where he developed a passion for sales, marketing and technology. In these roles, Derrek was responsible for developing and achieving strategic business objectives for each corporation.”
Harter is working out of NOVC KC offices. He co-founded SocialValut, where he is still listed as COO and on the BOD. SocialVault manages social media and risks associated with it for companies. He also was a marketing chief for a company that sold phone, internet and video to millions of households in 18 states.
Thanks for this significant information. Most of the cases remaining against the NOVC legacy companies can be thrown out based on this ruling. Most assets are probably protected anyway, and, as you say, since the insurance company will pay, if there is ever any settlement to make it all go away, this is largely an action involving our insurance company. One less thing for the company haters to talk about, although there is only one poster who tries to make people think it matters.
There IS a deal for Corvisa to provide support services to Assurant. That is a certainty. We just don't know how lucrative it is. I am certain that Streetlinks and CorvisaCloud continue to have a contact center agreement. It would be foolish for Assurant to switch. They haven't even changed their website. I doubt there will be an immediate switch over for Assurant's other divisions, but I think someone mentioned that Lance at last Fall's investor call hinted that they had insurance industry contacts that they felt would be ripe for selling CC's systems. NOVC is starting over but with lots of cash and the ability to grow businesses quickly. As you say, we will have to watch the trends not so much in the next Q but in the Qs that follow the establishment of their sales and marketing efforts.
CorvisaCloud is a whole new ball game. Mango, Advent and Streetlinks had to show a profit before share price could increase. Not so with a software as a service business like CC. Mango and Advent were failures, each with about a $10M investment. Streetlinks, with only an initial investment of a few million dollars, was highly successful. There are two significant differences for CorvisaCloud. The CC investment to date is about $7.5M with another $30M committed. And, unlike the other three, share value of this type of tech company can explode even without any profits.
Streetlinks revenues climbed dramatically over a four-year period. The company went from nowhere to the leader in its industry.
If CorvisaCloud has some similar exponential growth and can also compete with the best in the industry, share values likewise will climb appreciably.
There were reports that NOVC was going to continue to provide some transition services through Corvisa to Streetlinks new owner, Assurant. The 10q describes a much larger service and therefore more income.
“In connection with the sale, the Company and Assurant also entered into a transition services agreement, pursuant to which the Company will provide ongoing information technology, human resources management and accounting services to StreetLinks for a period of up to eighteen months.”
Cash closer to $62M. See note on additional sales expenses.:" The Company received approximately $53.9 million in cash proceeds at closing, of which $1.0 million was used to make certain earned bonus payments to three StreetLinks executives and approximately $1.4 million was used to pay transaction-related expenses."
NOVC has shed more light on the Streetlinks sale and indicated that the decision was NOT governed by negative covenants with the senior debt.
“The sale of a subsidiary is not prohibited by the Negative Covenants, provided that the sale is at fair market value and the proceeds are reinvested in the Company. As such, the Company was in compliance with all Negative Covenants as of March 31, 2014 and December 31, 2013, and therefore the Company was under no obligation to comply with the Financial Covenants during these periods."
I just noticed that IV poster wavb, a former poster here -- at least using that alias -- today criticized “more analysis riddled with flaws from yahoo.” Here is an example of Wavb analysis of NOVC share price: “Hell, a drop to zero can't be ruled out. Neither can a rise to 2 bucks” He’ll claims that quote was taken out context, but it wasn’t. Yet he distorts values that wellsbay or others placed on Streetlinks. Some of us, including me, at various times talked about POSSIBLE values IF certain levels of profits were reached and if someone like Fiserv were to buy the company (since their shares consistently are priced 20 times income). The only talk about 400-600 million anything when I search this message board was Wavb’s pal Studio claiming there would be a 400-600 million share dilution announced on the investor call. I still haven’t heard Wavb take his buddy to task on that really ridiculous one.
As stock prices rise, cash burn may grow, based on what CEO Anderson said today. I like the part about share prices rising. He talked about tech companies being valued based on growth. He claimed a great product, knowledge and money will get Corvisa Cloud the growth they need to increase the share price. On the knowledge issue he mentioned Steve Haslam’s extensive background with operating call centers. He described Matt Lautz as someone who can build anything you ask him. Anderson said Novation is working right now on a presentation to give to potential investors and investment conferences. I suspect it will be easier to describe a one function company to investors.
Basher Wavb is trying too hard to be everyone’s friend on the IV Board again these days slamming both NOVC and Yahoo posters that he has called idiots, criminals and bozos in the past. Today this non-shareholder ranted that “no target date to turn a profit is entirely unacceptable.” Wavb had been in hiding for a period after the Streetlinks $60M bonanza was announced because of the silly things he had said in the past about the appraisal company.
Wavb is the one who claimed that the Streetlinks expansion is just a “diversion.”
He is also the poster who claimed QX appraisal software was just “vaporware”, you know something that didn’t exist and would just disappear. He suggested that the company was stealing from its partners to make Streetlinks “look” good.
Rooky once quoted him as saying: ”Billy old chap, my degree is finance (4.0 average, I've done black-scholes calculations from scratch) and I do accounting for a living so I've got feet in both worlds.” He claims he always makes careful, thoughtful posts to explain why most of his posts are edited after being posted. But his most brilliant line recently: “”TurboTax is a huge threat to Advent. I'm pretty sure you can file electronically through TurboTax as well.” He wasn’t kidding. That from someone who does accounting for a living.