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ShareRoot increases the Social Science takings amid MediaConsent interest

The consumer data security provider is aiming to grow revenue and reduce spending in the coming year.
ShareRoot imagery
ShareRoot is increasing revenues quarter by quarter as it works toward profitability

ShareRoot Ltd (ASX:SRO) is bringing in revenues from the emerging MediaConsent authorisation platform, its Social Science marketing agency pick-up and the UGCDiscovery legal rights platform.

The company, which is focused on protecting consumer privacy and data, aims to increase revenues over the next 6 to 12 months.

READ: ShareRoot’s MediaConsent platform to be utilised in clinical setting for brain research

ShareRoot acknowledged at its October 30, 2018, annual general meeting (AGM) the strengths of its three revenue-generating income streams — MediaConsent, the Social Science and UGCDiscovery.

MediaConsent is a GDPR and internationally-compliant consumer preference and consent manager that can also be used as an identity and access management tool for companies.

The platform was beta-launched with the national agency Zig Marketing and game and app developer Ludomade on September 27, 2018.

MediaConsent’s beta launch came after the platform received an encouraging integration consent from Facebook, Inc. Common Stock (NASDAQ:FB, ETR:FB2A, SWX:FB, BIT:FB) on August 20, 2018, and application program interface (AP) access to the social network’s authentication program.

ShareRoot's MediaConsent API access to Facebook means its users can sign in to the platform with their Facebook accounts.

The Michelle Gallaher co-founded social media marketing agency, the Social Science (TSS), specialises in compliant social media campaigns for public sector agencies and organisations in the science, technology, engineering, and mathematics space.

UGCDiscovery is a legal rights platform that includes Johnson & Johnson (NYSE:JNJ, ETR:JNJ, SWX:JNJ, BVMF:JNJB34), Costco Wholesale Corporation (NASDAQ:COST, BMV:COST, FRA:CTO, BVMF:COWC34) and Singapore Tourism Board as clients.

The company is exploring offering the rights repository as a bolt-on to other marketing technology systems.

 

ShareRoot chief executive officer Noah Abelson-Girdler spoke to Proactive Investors’ Stocktube video channel this month after the company’s annual meeting, saying the company had slowed its cash burn and lifted revenue.

Abelson-Girdler said, “We have announced a partnership alongside (research organisation) Neuroscience Trials Australia, TSS, the social media marketing agency that is a part of ShareRoot, and of course MediaConsent itself, the platform.”

The second Australian research collaboration deal for the Silicon Valley company followed a late October 2018 agreement with St Vincent’s Hospital Melbourne.

ShareRoot’s clients already include Australian biotechnology success story CSL Limited (ASX:CSL), CSL Behring, Dimerix Ltd (ASX:DXB) and biotech industry body AusBiotech.

Outside the healthcare space its clients also include eBay Inc (NASDAQ:EBAY, ETR:EBA, SWX:EBAY, BMV:EBAY), Mcdonald’s Corp (NYSE:MCD, ETR:MDO, SWX:MCD, BMV:MCD), NBCUniversal subsidiary Universal Pictures, EngineersAustralia, Australia Unlimited and Invest Victoria.

READ: ShareRoot's MediaConsent platform to enhance clinical research at St Vincent's Hospital Melbourne

Abelson-Girdler said, “What we find, and what we all understand, is data privacy for consumers, clinicians, participants in clinical trials, customers, it’s all needed.

“So starting with St Vincent’s, (and) now Neuroscience Trials Australia — which is part of the largest brain research institute in the Southern Hemisphere — they are joining up to partner with MediaConsent (and) protect all of those individuals.

“You will see more announcements and more partnerships and more integrations alongside MediaConsent, in both the healthcare industry and more as time goes on.”

Predicted areas of growth

Over the 12 months to October 2018, the company directed its focus to cashflow efficiency, experiencing ongoing cost savings as it continued a drive towards profitability.

ShareRoot reported in its AGM presentation that strategic growth could be another income stream, saying the company was “open to opportunistic complementary revenue-positive streams.”

The company predicted the drivers of additional revenue in the next 6 to 12 months would be: MediaConsent revenue, the collaboration with St Vincent’s Hospital, TSS revenue growth, cross-selling opportunities, UGC partnerships, and strategic initiatives and partnerships.

READ: ShareRoot to integrate secure login technology with its MediaConsent platform

ShareRoot spoke to one of its core offerings, saying “The combination of international laws and public consciousness positions ShareRoot in the ideal place to drive significant value and thereby revenue from companies and organisations internationally in need of solutions for compliant marketing and staying out of legal trouble.”

The company is expecting the 2018-19 financial year to be a “transformative” year for ShareRoot as revenues climb and cash burn is reduced.

ShareRoot imagery

September 2018 financial quarter results

TSS’ doubling in retainer client base in the six months before its parent company’s AGM is expected to be a cornerstone of revenue growth in the Gallaher-led subsidiary.

Revenue for the group was a record high, up about $109,392.41, or 58%, from the June 2018 financial quarter to $298,000 in the September 2018 quarter, continuing its quarter-on-quarter increasing trend.

Operating losses declined about $172,253.16, or 21%, to $648,000 in the quarter.

The company, which has a market capitalisation of $5.34 million, ended September 30, 2018, with $1.41 million cash at bank.

ShareRoot’s September quarter revenue came in close to its 2017-18 revenue result, where it wrote $390,956 in revenues on the back of a $3 million after-tax loss for the full financial year.

Key people

Abelson-Gertler is the Australian-listed Californian company’s chief executive while Gallaher is the CEO of TSS.

Parent company ShareRoot’s board includes Abelson-Gertler, Lee Rodne as non-executive chairman and his fellow non-executive director Peter McLennan.

Jason Weaver is the company’s chief product officer while Andrew Bursill is its company secretary.

The company draws on the skills of an eight-person International Multidisciplinary Advisory Board that includes software design specialist Weaver and September quarter new additions to the group — Lithuanian businessman, government policy specialist and European Parliament member Antanas 'Tony G' Guoga, and marketing compliance specialist and chief marketing officer for Firefox browser owner Mozilla Corporation, Jascha Kaykas-Wolff.

Also on the advisory board are PeronsalData.io privacy specialists Jérôme Groetenbriel and Paul-Olivier Dehaye; Privacy Alliance legal advocate Ari Scharg; Electronic Arts corporate privacy specialist Kirsten Daru; and Ciavarra Advisory Services marketing specialist Chris Ciavarra.

Internet entrepreneur and crypto business founder Tony G became a strategic investor in ShareRoot in the September 2018 quarter with a $520,000 investment that made him one of the company’s top 20 shareholders.

The company is expecting to draw on his expertise as it undertakes a full launch of its Facebook-integrated MediaConsent platform.

Tony G was the company’s second-largest shareholder on June 30, holding 4.49% of the company while top shareholder Marat Basyrov held 5.46%.

— With Ky Chow

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