9Spokes’ busy June quarter provides momentum as it builds a digital future

9 Spokes International Ltd (ASX:9SP) has had a busy June quarter gaining momentum as it builds a digital future aimed at bringing businesses, financial institutions, developers, and data together to share the benefits of open data. A highlight of the quarter was the company signing a three-year contract with Virgin Money UK through which 9Spokes’ solution will form a core part of the bank’s working capital health proposition. 9Spokes business development strategy remains focused on pipeline opportunities, including a paid proof of concept with a financial institution, while direct enterprise sales and campaign-based initiatives are ongoing. “From data platform to open data platform” 9Spokes CEO Adrian Grant said: “Q1 FY22 was a busy and rewarding quarter for the 9Spokes team. “The sense of accomplishment that comes from first announcing our contract with Virgin Money and second — subsequent to the quarter close — delivering our platform to our new partner is truly energising. “To add to this, during the quarter we prepared for — and have since launched — 9Spokes Open. “In doing so we have taken our proposition to its next natural phase, moving from data platform to open data platform. “Those of you who have followed 9Spokes will know this was always on the cards. With the right market headwinds in place, we found now to be the time.” 9Spokes’ strategy is focused on three product offerings. Add depth to customer experience The 9Spokes’ product offering encompasses Apps for businesses namely Track, Connect and Explore; Apps for Banks called Engage and Monitor; and 9Spokes Open. The company has released category boards on Track, the 9Spokes business dashboard, to support flexible, dynamic cross-team views of business insights on a needs basis. In the current quarter, the company is focusing on enhancements to Explore which provides educational insights and resources for businesses. These product releases add depth to the customer experience and have a direct influence on customer acquisition and engagement. Building a digital future Grant adds: “We continue to enhance our apps to evolve with our customers’ needs and expectations. “Our vision is to build a digital future. We do that by delivering an engaging proposition that provides tangible solutions to contemporary use cases.” Working to innovate and enhance The team at 9Spokes is working to innovate and enhance its proposition to deliver a superior experience to the company’s business customers and bank partners. During the quarter, the company was focused on the preparations for the launch of 9Spokes Open. This enables third parties to access its data sets through open API to build their own business solutions or integrate their client’s data into their platform. Grant adds: “9Spokes Open adds another avenue to market to our core product. “While we continue to focus on direct and enterprise sales of our 9Spokes Apps for Business and Apps for Banks, we will also undertake campaign-based initiatives to activate 9Spokes Open in market. “9Spokes Open is about enablement. Enabling third-party providers — businesses and developers — to use our data sets to build brilliant business solutions or integrate their client’s data into their platform.” “Brings breadth of experience” Another recent milestone was Kevin Phalen joining the board as an independent non-executive director effective June 27, 2021. Phalen will also sit on the board’s Audit & Risk Committee and the Remuneration & Nomination Committee. Grant adds: “It would be remiss of me not to mention the appointment of Kevin Phalen to the board as an independent non-executive director. “Kevin brings a breadth of experience to the Board and 9Spokes.” Quarterly operating cash receipts, expenditure and burn. Quarterly receipts and expenditure 9Spokes operating receipts were NZ$1.0 million, which was below forecast revenues due to delayed timing of receipts. Operating expenditure was NZ$2.7 million, resulting in a net operating cash burn of NZ$1.7 million. The expected cash burn for the quarter ending September 30, 2021, is NZ $1.7 million. Grant adds: “Excitement in Q1 was dampened by the subsequent agreement with Oversea-Chinese Banking Corporation (OCBC) not to extend the contract. However, we remain buoyant and are looking forward to the rest of FY22. “Q2 is well underway. We’re dedicated to maintaining the momentum we have achieved. In our Annual Report, we laid out four areas of focus — partner, grow, innovate, and perform — as guiding principles of how we operate our business. “Against these, we align our strategy as we drive towards growth.” - Ephrems Joseph