“We believe LNU’s commercialization has only just begun and is showing very promising results”: That’s the summary of the latest report on Linius Technologies Limited (ASX: LNU), and the progress the Company's making, from market research firm TMT Analytics.
The report reiterated TMT Analytics' buy recommendation for Linius shares, stating that “using a DCF model, we calculated a fair value of A$ 0.23 per share”.*
Watch the accompanying video interview between Linius CEO, Chris Richardson, and TMT Analytics' Managing Director and Principal Analyst, Marc Kennis, below.
Download the full research report HERE >
Read extracts and highlights from the interview and research report below.
Marc Kennis: You launched a commercial version of the self-serve platform [Linius Video Services] that has been in beta for a little while. So who are you targeting with that SaaS offering of Linius, and what does that platform allow users to do?
Chris Richardson: “It’s a tremendously exciting opportunity for us. It’s one of the things I’m personally most excited about in the business.
“As we go around and we talk to people, whether they’re partners or clients or other players in the industry, the one thing that sunk into me is that in every single meeting, 100 percent of the time, when the people on the other side of the table start to really understand what it means to have access to the data inside video [through video virtualization technology], they invent a new use case we haven’t thought of before.
“Our vision is to really drive virtual video as the defacto standard, to make this everywhere, to enable all these new opportunities. And absolutely the best way to make that happen is to let people do it themselves. And that’s what LVS offers.
“Anybody can come in with a credit card, sign up, and start virtualizing their own videos immediately. They can start programming with our APIs, experimenting, creating their own use cases, driving their own products, and really innovating in ways that we can’t even begin to imagine today.”
In the supporting research report, TMT Analytics said that “this sort of scalability is one of LNU’s key attractions for investors.”
The report continued, stating that “we can see a vast range of application areas in various video-rich industries, including digital marketing, news and media, sports broadcasting and education.”
In fact, TMT Analytics actually completed their own mini Proof of Concept on the LVS platform: “For instance, creating a free developer account on lvs.linius.com, TMT Analytics was able to virtualize and manipulate its accompanying video interview with Linius CEO Chris Richardson,” read the report.
Marc Kennis: Tell us about your recent announcement with MediaAMP.
Chris Richardson: “We want virtual video everywhere. We see it as the future of video. So it’s critical to the scale of the business, that we work with channel partners who can deliver broad solutions into their existing and new customer bases.
“MediaAMP is a video technology reseller, specifically focused on the education market in the United States. They work with a number of major institutions, including the University of Arizona, the University of California, the University of Washington and dozens of other major universities around the US.
“They’re able to take our technology, integrate it with their existing media asset management solution, deploy it to existing customers, and also resell it to new customers.
“They’re a great example of how we get to the really huge education market in the US… One of our Proof of Concepts, Oklahoma State University, has hundreds of thousands of hours of video content in their library. And, there are nearly 5000 higher education institutions in the US alone.
“So this really does represent a tremendous opportunity for Linius in the education vertical.”
Marc Kennis: In July you announced a deal with Newstag in Sweden. Could you talk a little bit about that deal, and how it gives you exposure to broadcasters globally?
Chris Richardson: “Absolutely. Newstag is exactly the sort of solution I’m talking about inside our Video Search Solution horizontal and news vertical. Newstag is a leading company out of Sweden that’s a data-driven news aggregator. The capability they get by adding Linius to their technology is the ability to deliver hyper-personalized streams.
“That applies both to end-users of their service, in over 150 different countries who receive hyper-personalized streams of video content directly for them,… [as well as] over 20 broadcasters globally, and growing, [who Newstag partners with to] distribute that video news content.
“So this ability to personalize the news streams, to extract just the pieces you want from any given video, has applications both at the end-user delivery level and in the production space behind-the-scenes as news agencies put things together.
“In addition to integrating virtual video from Linius inside their offering, we’re working with Newstag directly to go-to-market to a number of other broadcasters of news around the world.”
The TMT Analytics report also highlighted Newstag as the type of strategic deal that “we expect will help LNU substantially expand its reach into one of its target markets for Search, i.e. news.”
The report continued, stating that: “Through its exposure to leading news producers such as AP, AFP, CNN and Bloomberg, Newstag gives LNU the desired reach into this vertical without LNU having to deploy substantial resources to capture this vertical.”
The TMT Analytics report concluded by stating:
“We believe LNU’s commercialization has only just begun and is showing very promising results, especially regarding its Video Search Solution. We expect the company will be able to continue the acceleration of this commercial roll-out going forward with a growing number of channel partnerships and direct sales wins.
“We reiterate our Buy recommendation. Using a DCF model we calculated a fair value of A$ 0.23 per share.”
Read investmentsrevolution.com's write-up on the TMT Analytics report HERE >
View additional TMT Analytics interviews and research reports involving Linius HERE >
This report was originally published on tmt-analytics.com.au and has been commissioned and paid for by Linius Technologies (Company) and has been prepared by TMT Analytics, an Authorised Representative of BR Securities Australia Pty Ltd. The report solely reflects the views of TMT Analytics.
Any opinions, forecasts, recommendations or forward-looking statements in the report reflect the judgement and assumptions of TMT Analytics at the date of publication of the report. The Company does not endorse the findings or contents of the report, including any price target, earnings forecast or other statement about the Company’s prospects, and will not be responsible for any loss or damage arising in any way from errors, omissions or misstatements in the report or the use of, or reliance on, the report in any way.
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TMT Analytics was founded by Marc Kennis and is based on two decades of institutional equities research experience servicing clients in Australia, the UK, Europe and North America. Delivering the best possible service to clients is his key priority.
Marc is passionate about the TMT space, with interests ranging from electronics and leading-edge hardware to newly emerging content delivery models, such as OTT, as well as cyber security, Artificial Intelligence and computer gaming.
For more information, visit www.tmt-analytics.com.au
Linius Technologies Limited (ASX: LNU) has invented and patented the Video Virtualization Engine™ (VVE), which is available on Amazon Web Services, Microsoft Azure and IBM Cloud.
Amazon, Microsoft and IBM are investing billions in virtualizing 'video services' (technologies) and Artificial Intelligence in the cloud. It is arguably the biggest battle on the internet, given that video accounts for nearly 80 percent of internet traffic.
Only Linius can expose the data that makes up the video file, making cumbersome video as flexible as all other forms of data. Accessing the data within the video file is the missing link for video cloud service providers, creating unparalleled value across the internet video industry.
Linius has the potential to transform many multi-billion-dollar markets, and is initially focused on:
For more on Linius Technologies, visit www.linius.com
Linius Technologies: Lachlan James, Director of Marketing and Communications, +61 (0)431 835 658, firstname.lastname@example.org