Small Cap Sentinel: The Power of SMS

Is Textmunication (TXHD) the Exception to the Unicorn Rule Right Now?


ORLANDO, Fla., Aug. 15, 2016 (GLOBE NEWSWIRE) -- The IPO market, and specifically the one for tech unicorns- you know, those sparkly startups with valuations in excess of $1 billion- has not been glorious. Despite the glittering moniker, public market acceptance has been less than bullish.

And then came Twilio (TWLO), an app software startup that helps companies communicate more effectively. Its IPO was met with rich enthusiasm and even the last investors in the boat pre-IPO saw their shares triple. Roughly put, all the early investors in Twilio made enormous gains on their unicorn bet. (See chart: http://yhoo.it/2aMttwX)

But as Bloomberg points out in this article (source: http://bit.ly/2aWOWOk), that hasn’t always been the case for unicorns as only two have dared to go public this year after a rough recent history for their breed. Bloomberg reports that recent unicorn IPOs were met with harrowing devaluations in the public fray, finding themselves below water and dealing with new shareholders upside down in their shares.

Interestingly, and perhaps most interestingly for investors of SMS/Text B-2-B company Textmunication (OTC:TXHD), is that Bloomberg posits that Twilio’s exceptionalism is due more in part to the manner of its business (and lack of debt) than anything. According to Bloomberg, “Twilio is also in the relatively uncrazy corner of the technology world catering to software developers. Those app coders increasingly control the purse strings at their employers, and many of them have grown addicted to Twilio’s software. If you tap a button in the Uber app to call or text a driver with instructions, that interaction is enabled by a single-use phone number using Twilio’s technology.”

That reliance on communicating with the consumer base is Twilio’s center of gravity, the enduring fuel of its revenue engine. And a comparison can too be drawn to the much smaller Textmunication which is quickly entrenching itself as an essential communication market leader in a number of lucrative verticals including the Health & Fitness industry where Textmunication’s management estimates a 70% market share of mobile marketing communication as of this writing. Seventy percent. Textmunication’s deliverable includes using SMS communication to improve how businesses effectively reach consumers and manage and monetize that relationship.

Bloomberg is highlighting the fact that consumers are craving direct access and instant communication in its Twilio report. Textmunication is at present the only SOLUTION-based SMS platform serving this referendum of connectivity in the Fitness market. The Company is quickly establishing itself in a crowded mobile marketing field by offering a cloud-based software solution helping gyms communicate more effectively. This unique integrated service is providing gym members instant communication in a mobile marketing sector growing at double digits every year.

And Textmunication can name drop exclusive partnerships with Club Management Software (CMS) leaders ABC Financial, Jonas Fitness, ASF Payment Solutions, Paramount Acceptance, ClubSystems and more. Textmunication also can add gym luminaries like Gold’s Gym, Fitness 19, World Gym, Steve Nash Gyms and Crunch Fitness to its mantle.

With a current market cap of $2.2 million Textmunication has a long way to go to be a unicorn. But the company is certainly entrenching itself as an integral business communications provider with significant penetration in a very, very large market.

That in and of itself, may help Textmunication separate itself from its peers at its own market strata in a way that Twilio did among the lofty unicorns.

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About Textmunication:

Textmunication (www.textmunication.com) is a SMS/Text marketing solution company focused on businesses with repeat customer interaction such as health and fitness, restaurants and medical care. Textmunication offers SMS/Text messaging exclusively and the Textmunication platform integrates with enterprise software CRM solutions to manage customer accounts.

About Small Cap Sentinel:

Small Cap Sentinel is owned and operated by Emerging Markets Consulting, a syndicate of investor relations consultants representing years of experience. Our network consists of stock brokers, investment bankers, fund managers, and institutions that actively seek opportunities in the micro and small-cap equity markets.

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