Weekly Fundamentals✅: $VUZI Corp was 🆙 over 30% today.

I've been talking about $VUZI since it was $9 b'cos of the capability to solve key problems across multiple verticals.

So here below was my thesis (maybe its why $ARK Invest bought? or $AAPL is investing here)

This $VUZI thread contains of the following

1-5: Overview & industry use-cases
7 - Financials
8 - Industry
10 - Competitive advantages I believe makes $VUZI maintain a good position in the AR Market

*There are risks, but you'll need to be open-minded & be big picture minded*
1/ $VUZI

They design, manufacture, market and sell Augmented Reality (AR) Smart-Glasses display, wearable computing, AR optics technologies, display engines and products for the consumer and enterprise markets.

*No, this is a real product being used today, not a story stock*
2/ $VUZI -How it works:

The AR glasses have sensors & computers that enables the user to view, record and interact with video and digital content -> When viewed, they create virtual images that appear like computer monitor views & a real environment/ think $ZM-like on a glasses
3/ $VUZI Value Proposition:

- Multiple use-cases across where $VUZI is used today to connect surgeons and healthcare providers from Telemedicine to Warehouse; Manufacturing, Field Service, Training services etc.
- Massive increase in productivity for enterprises

More below:
4i/ $VUZI Healthcare uses:

- Enabling precision in surgeries and care delivery:

Some examples:
- It was used during Open Heart Surgery at the Chi-Mei Medical Center in Taiwan
- Knee surgeries at multiple hospitals in the US
- Used for virtual rounds and Physician training
4ii/ $VUZI In addition:

The University of Louisville School of Medicine, during the course of clinical trials utilized $VUZI glasses to enable over 320 students to receive a clinical shadowing which would have not been possible otherwise.
4iii/ $VUZI Customer Client list (These are just a few)

- Most of these healthcare clients started using them in 2019/20 as VR needs for hospitals increased as Covid accelerated key changes.

- Building a strong customer list:
5) $VUZI SaaS:

- $VUZI integrates with various communication software like $ZM and $CSCO which enables those telemedicine or virtual trainings

- They have invested significantly into their software/SaaS offering and investors can expect Recurring revenues from here later
6/ $VUZI Hardware

-They have a variety of customers within the OEM, Aerospace and Defense contractors space that are utilizing the software for production of engines or repairs that would have required having an in-person engineer.

There's much more Use-case, but I'll stop here
7/ $VUZI Financials:

• TTM Revenues: $10M: Growth from Q2: 40% -> Q3: 100% YoY Growth
• Mgmt preliminary results expecting Q4 Revs over 107% YoY
• Estimated 2021 Growth: 78%
• Cash: $52M
• Low-debt

* Valuation is off the roof but deservedly (I bought when it was better)
8/ $VUZI Industry:

• Markets&M Data estimates $77B market by 2025 driven by Healthcare; Retail and e-comm
• Ark Invest estimates the revenue from Virtual worlds will compound by 17% to $180B
•ARK forecasts that by 2030 the AR market could scale from under a $1B today to $130B
8i/ $VUZI Industry

Additional industry data here “We've seen a huge uptick in commercial interest in both virtual and augmented reality driven by the pandemic” – industry expert IDC.

Bottom line is this industry is big with a few players.

Read more:
9/ $VUZI Competitors:

$FB, $GOOGL, $AAPL have been investing here bc'os of the big opportunity available

The most important thing is that $VUZI has found a niche by designing smart glasses for enterprise solutions like healthcare while, we know big tech is focused on consumer.
10i/ $VUZI Competitive Advantages:

- Market leader with a niche and 20yrs core competency within the enterprise markets in 5G & edge computing for key industries

- Over 184 significant patents & IP in key AR smart glasses technology and waveguides (Also why Intel owns a stake)
10ii) $VUZI Comps con'td:

- They have products positioned across all verticals for B2B & B2C markets while maintain a niche.
- $VUZI has production scale and customizability features based on industry
- Better pricing than Comps
- Product validations with huge customer wins
11/ Future Product-Line:

This is going to be the huge game-changer. They are working on perfectly normal glasses for consumers.
- It has Full-screen and phone LED videos connections
- Headphones capabilities
- Wireless connectivity
- Advanced projections
12/ $VUZI Ownership Structure:

- Mgmt owns over 10%
- Intel ($INTC) owns over 10%
- Significant insider buying and no-selling over last couple of months which brews mgmt confidence

* They've won CES awards for innovation btw '05 - 2021 and several tech. innovation awards
13/ $VUZI Risks:

- Competition from Big Tech is always one if they dabble into $VUZI niche
- More execution risks to attract more clients
- Reducing R&D costs to drive cash flow and sustainable margins overtime
- Time lag b4 Widespread adoption of AR
- Still small & growing
14/ $VUZI Bottom-line:

- AR is helping solve key problems
- They've created a core competitive niche in AR for enterprises & Healthcare w. significant patents
- Huge TAM
Me: Its High risk, high-reward as I started a small pos - They've *shown execution* which is key

Thanks :)
Interesting question @parth_ir on $VUZI vs $U

$U's is mostly focused on the VR & AR Gaming market (which is huge)

Meanwhile, $VUZI primarily caters to the enterprise market focusing on building AR Glasses for healthcare and others in the thread.

Every week, I write to Investors about upcoming companies with massive competitive advantages and secular tailwinds below.

Follow or check it out.


• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Francis Investing Analyst

Francis Investing Analyst Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @InvestiAnalyst

22 Feb
BIG beat for $ZI - 10% AH

Key Highlights:
✔️Q4-2020 Revenue: Actual $139M vs. Est. $130M (53% YoY Growth) (7% Surprise)
✔️EPS: Act. $0.10 vs Est. $0.12
✔️Q4- GAAP Ops. Income Margin of 21% and Adjusted Margin of 45%
✔️FY 2020: 63% YoY Growth

This is a Top-class company-✅🔥
Part 2 - $ZI

- Cash flow from operations of $169.6 million, and Unlevered Free Cash Flow of $243.7 million.

- $ZI closed the year w. >20,000 customers, including more than 850 customers with $100,000 in annual contract value

- FY 2021 Guidance below
Part -3: - $ZI

* I may start another position again as I sold my position a few weeks ago.

- Top-line Revs growing >50% consistent
- High gross and ops margin
- Founder-Led with three awards for 2020 culture & placed No. 15 on for Best Company Culture
- Moat within sales teams
Read 4 tweets
20 Feb
$PLTR Investors should focus more on Foundry, the commercial business and leave behind the past $PLTR of US Gov’t

In this analysis, I utilize my experience as a Product Lead for AI projects to highlight factors I believe differentiates Palantir.

Below is a thread of the report- Image
1/ The best way to understand $PLTR software philosophy. Think of it as a funnel.

i) Data Integration to absorb data
ii) Knowledge & Data Management
iii) Advanced search and discovery
iv) Intuitive app to drive collaboration

It goes back to the early days with Peter Thiel.
2/ The Four Tenets that guide Foundry:

i) Ontology of data and wide-ranging use case templates
ii) Advanced AI Capabilities and simulation modelling from the ontology
iii) Modularization with a variety of software apps
iv) Interoperability with any data platform such as IBM’s Image
Read 10 tweets
16 Feb
$PLTR Palantir Technologies announced FY results – Stock is🔻12%

Below are $PLTR Full Earnings + Year Review/Takeaways after the Conference call:

+ Why Q4- looked weaker than expected
+ Why I’ll be buying more shares
+ This week's volatility

Review Thread & hope it helps:👇 Image
1/ $PLTR - Let’s start with Revenues:

Full-Year 2020: 1.093B vs $743M (2019) - 47% YoY

• Q4-20: Rev Est. vs Actual: $322M vs 2019-$229M - 40% YoY

• Overall, 56% came from Gov't and 44% from Commercial clients
**Slight improvement from 2019 in Revenue mix

We break it down>
1i/ $PLTR - Government Revenue:

- It was $610M grew 77% YoY

- QoQ basis: Q3-19: $97M > Q3-20: $163M (68%YoY) > Q4:20 190M (85% YoY)

- 10 National Govt generated most of it.

*The growth was boosted by more Govt clients spending on Covid-19 (FDA & NHS England) and the US Army
Read 16 tweets
16 Feb
Dye & Durham $DND
Q2 Earnings Takeaway & Highlights:

Leading Canadian provider of cloud-based software solutions designed to improve efficiency within the Legal tech industry holds a MONOPOLY.. yes extremely rare.

Q2-2021 (3-mths) Revenues grew $33M (96% YoY)

Cont'd below.. Image
- For the 6-months ended 2020 with $55M (63% YoY)
- Guidance for June 30, 2022: Revenue of over $340M (> +100% Growth) *includes acquisition of DoProcess*
Most of their acquisitions are being integrated earlier than expected

Adj. EBITDA $200M (below) Image
Managements goal:

They are focused on dominating the legal and real-state tech platform markets within Canada, the UK & Australia.

Hence, the strategy is to continue:
- Acquisitions to capture competitors
• Broaden and expand customer base
• Innovate platforms
Read 4 tweets
4 Feb
$APPS - 🔥 25% 🔥

My Full Earnings Call Takeaways + Analysts notes

1/ Basic Info

- Rev of $89M vs Exp $75M Exp. (16% beat)
- 146% Growth YoY (58% organic growth as MP reps $31M
- EPS: $0.21 vs Exp $0.17 (23% beat) - 425% earnings growth

Cont'd - Hope you find helpful! - 🙌
1b/ Financials $APPS:

- GP expansion – 166% – due to content
- GM 43% - content media, apps business based on revenue mix is driving margin expansion
- Ops. margin expanded by 23.2%.
- Adj. EBITDA up by 302% Y/Y to $22.51M; and margin expanded by 25.4%
- FCF keeps improving
- Overall International revenue is gradually representing a much higher share than US
- Revenue Per Device (RPD Growth) which is key metric is growing - nearly 70% growth in Int'l
- Int'l supply revenue for media grew 200% YoY
- Primarily from partners such as Samsung, Xaomi
Read 17 tweets
3 Feb
Pre-Earnings Watch👉: $APPS

Digital Turbine, a platform provider for building apps, enabling content discovery and mobile digital ads

Why I'm bullish L-T:
1/ They have a strong competitive position within the mobile operator-advertiser niche for android devices.

Cont'd -
2/ $APPS Growth Pillars:
- SingleTap is a new product where a user can automatically download an app in a single-tap without visiting the actual app
- Mobile Posse: Product that goes natively on a phone and includes news, sports, ads etc.
- 5G roll-out and Increased phone ads
3/ $APPS software is installed on over 450M+ phones, and this total is increasing by 20M phones per month

$APPS is increasingly building additional revenue streams, such as providing content for carriers such as Sprint

Major clients include Samsung, AT&T, Verizon, Uber.
Read 5 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!