StockBox Media hosted an investor call with Ondo CEO Craig Foster on Friday August 18th. For the full interview see this link
Our key takeaways include:
Focused Strategy
Ondo's focus remains on bringing more insurance partners to the table and expanding existing partners
Addressable market is primarily homes, easily in the tens of millions of potential unit sales across target markets America, UK, Scandinavia and potentially Australia and Europe
Recurring revenue business - highly predictable cash flows with monthly fees - we believe should drive premium valuation for the shares over time
Multi-Pronged Intellectual Property
The LeakBot includes a wifi radio that links to the user's home router, which sends a data packet to Ondo's servers every 24 hours and more frequently if a Leak is detected. This has the benefit of having low power consumption and therefore prolonging battery life estimated at 3-5 years per device. If no leak is detected then a standard dataset is recorded. - water company and/or insurance partner gets amalgamated data across user base as required
Ondo has own customer service department which monitors the global data feed
Ondo owns the patents on this technology using standard pressure sensors combined with patented technology to detect leaks within the property. The team is looking to reduce the costs of this technology
These features enhance the individual patents around the device technology, in our view, and present potential future value-add pillars to the business
Plumber Leak Detection Can Be Outsourced
Ondo is finding insurance partner plumber networks once trained to use Ondo Technology deliver just as well on repairs and checks as Ondo managed plumbers, which saves time and money for the company
The company believes this technology could be licensed to third party plumbers as a potential secondary business in the future