Renoworks Software Steams Ahead To Record Financials In 2021
Renoworks Software Inc. (CA: RW – $0.45 & US: ROWKF – $0.36) is an established B2B software-as-a-service company that offers a web-based visualization platform for homeowners and contractors to plan, design and visualize home repair and remodeling projects before committing to purchases and construction. The Renoworks platform includes over 350 building products brands and counts 3.2 million unique users per year.
Renoworks markets its platform primarily to building product manufacturers (BPMs) in the U.S. and Canada as an all-in-one custom-branded digital marketing tool that engages homeowners, nurtures them toward a purchase decision, and provides the manufacturer with buyer intent data into the entire customer journey. Renoworks also offers visualization solutions to contractors that help them better engage with homeowners and enhances their workflow with remote measurements, 3D models and other quoting solutions.
Both for fiscal year 2020 and the first half of 2021, the Company achieved record sales. Mr. Doug Vickerson, the CEO of Renoworks commented on the results by saying, “Continued investment in the Renoworks platform has resulted in more clients adopting our visualization technology that removes home repair and remodeling frictions. This resulted in record quarterly revenues, driven primarily by a strong construction and repair and remodel season that began at the beginning of 2021 and has continued through June 2021.”
Although the Company didn’t provide any guidance, it did mention that its pipeline remains robust as clients continue to see increased traffic and more conversions of high quality leads. As a result, the Company anticipates the solid trajectory to continue through the rest of the year.
Moreover, thanks to the exercise of warrants in June, Renoworks’ consolidated cash position at June 30, 2021 was $1,598,610. The additional capital puts Renoworks in the best financial position it has ever been in.
Renoworks still only has a market cap of about CAD$17 million. This level of valuation in the technology space is usually reserved for a highly speculative company with little to no revenue and a weak balance sheet. Renoworks however has worked hard to gain a solid financial footing from both an income statement and balance sheet perspective.
All in all, Renoworks presents a combination that is hard to find in the small cap investment space: growing financials, active in a fast growing market, a straightforward business plan that is being executed successfully, and a strong management team.
We reiterate our buy recommendation for Renoworks Software with a price target of $1.45, which is 222% above today’s stock price.
|Smallcaps.us Advice: Buy||Price Target: $1.45||Latest Company Report (pdf)|
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