April 30, 2021 - 1:20pm EST by
2021 2022
Price: 0.68 EPS 0 0
Shares Out. (in M): 23 P/E 0 0
Market Cap (in $M): 15 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 15 TEV/EBIT 0 0

Sign up for free guest access to view investment idea with a 45 days delay.



Intouch Insight (InI) is a small micro-cap company that I think has the potential to
appreciate 2X to 5X over the next few years. I think today you pay a reasonable price for
its existing service business with a free option on its newer SaaS business. The current EV
is $16 million. All figures are Canadian since the company reports that way. The company
has been public for 20 years and has high inside ownership (30%). Revenue is primarily in
US (67%) and Canada (33%).
InI entered 2020 with high hopes, with revenue projected of $25 million with a $30 million
exit run rate, compared to $20 million in sales in 2019. Covid hit the company hard. The
company finished the year with $13 million in revenue. Despite the revenue drop EBITDA
was $1.5 million, 8% higher than 2019 due to cost cuts and government support programs
(which added about $1.6 million to EBITDA).
For a time in 2020, many of the industries InI serves all but shut down including Retail,
Foodservice, Hospitality and Automotive while other industries InI serves continued to
operate, but in a very difficult environment such as Grocery, Petro-Convenience and
Pharmacy. As a result, many of them put their contracts on hold, but no customers
cancelled as a result. Overall, InI has had a customer retention rate of 97% since 2013.
InI designs, builds and delivers solutions primarily for Fortune 1000 and well known brand
customers that collect data used to improve business outcomes in areas such as customer
experience management, customer survey, mystery shopping, mobile forms, operational
and compliance audits, and event marketing automation solutions. These products
facilitate the rapid development of data collection programs including event lead capture,
customer satisfaction surveys, and mobile forms, checklist and audits. All products include
real-time, online reporting and advanced analytics to help clients focus their time on the
most strategic projects.
The most exciting part of the story is that in 2017 InI began to develop and bootstrap a
Customer Experience Management (CEM) SaaS product. They have continued to build out
the product over the years and now have a robust offering which they call LiaCX. LiaCX
helps clients collect and centralize data from multiple customer touch points, gives them
actionable, real-time insights, and provides them with the tools to continuously improve
the customer experience. These tools fit into InI’s existing client base as well as other
target industries.
Sales from the SaaS business were about $1 million in 2020. LiaCX sales grew 27% in the
year despite overall sales being down 35%. In think InI LiaCX business can grow rapidly
as we come out of Covid. The offering is at a point where in InI’s eyes it is the best offering
in the market for the niche it serves. Another benefit is that InI is selling the product into
clients in which they have an existing relationship.

LiaCX is a complete, SaaS-based solution that helps customer experience (“CX”)
professionals make targeted improvements to accelerate the delivery of a world-class
customer experience. LiaCX gives a full view of the customer in a single, unified platform.
It Collects, analyzes and combines data natively, using built-in survey tools, checklists and
mobile forms, reporting of mystery shopping programs and audit results, social listening,
and limitless third party integrations all from within one platform.
Cameron Watt - President & CEO, Intouch Insight
Cameron Watt is the President & CEO of customer experience management company,
Intouch Insight. Previously, he owned and operated several retail businesses and has held
management positions at Mars, Unilever, PepsiCo and Yum Brands. Cameron has
a B.Comm from the University of Alberta and an M.B.A. from the Richard Ivey School of
Here is link to a recent short interview with Cameron Watt and a recent pitch book.
InI existing business was projected to exit 2020 at a $30 million run rate. I think the
company can recover all of that post Covid. If we swap 2022 for 2020 and get to $25
million in revenue and growth of 15% a year after (which is less than the historical growth
rate), the legacy business generates about $40 million in 2025.
I think LiaCX, which grew 27% in 2020 to about $1 million in sales, during a 35% drop in
overall sales can grow 50% in 2021-2025, which would put it at $8 to $10 million in 2025.
I think if anything it could be a bigger business by then, but let’s not get carried away. I put
1X sales for the services business and 4X for SaaS. Total EV of $80 million, this gets us to
about $3.50 a share or 5X.
Along the way as the company goes from tiny to less tiny that should help on the valuation
front as will a probable future NASDAQ listing and IR effort.


I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.


Recovery of business post Covid

Recognition of SaaS company as the product grows

NASDAQ Listing 

IR Effort 

    show   sort by    
      Back to top