AnalytixInsight; Discussing Morningstar Global Market

Host: Welcome back ladies and gentlemen to AnalytixInsight’s channel forefronting artificial intelligence with actionable insights.

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Joining us as always, the Chief Executive Officer, Prakash Hariharan. Welcome back sir.

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Prakash: Thank you. Thanks for having me.

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Host: Always a pleasure. Last we spoke, you guys made this pivotal partnership with Morningstar and I wanted to get a little bit more insight into that because Morningstar Marketwall launched that Morningstar Global Market. I mean this is a huge deal. Do you want to just offer further insight surrounding this?

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Prakash: Yes, thanks. I mean it was a very significant milestone for the company, among the biggest milestones that we have done. Because we are partnering with the global giant Morningstar who has been around for decades and is a key player, one of the four or five major players in the financial world, financial data business. Effectively this was their first foray on the enterprise side which they haven't really penetrated with the product that rivals that they get from, competitors like Bloomberg, Thomson, Reuters, Eikon Terminals etc. 

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By choosing MarketWall/AnalytixInsight as a technology partner, we get a straight licensing revenue stream out of that for every license that Morningstar sells. And this is a very big in a multi-billion dollar industry as everybody knows. For every enterprise license that Morningstar sells, we get a revenue share out of that. It's a recurring SAS-based model and it's a very pivotal moment for the business to commercialize its enterprise for we're calling it a GEMINA as a brand name between Morningstar and AnalytixInsight. So, in a sense, this is going to be a very key space as the capital spending cycle accelerates in the fintech area. There'll be more and more demand for enterprise products and enterprise solutions like the ones that they're offering with Morningstar.

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Host: Yeah, you guys are hitting some of the most pivotal markets in my opinion between that SAS model that subscription as a service and you're kind of pivoting this in with the fintech space. I mean, again, as you speak about stabilizing the revenue and obviously just expanding farther, talking about the macroeconomic circumstance, I mean, a lot of these small caps are trading down, which I think is setting up for some value plays with companies like yourself and many others that are putting out these really stabilized tenants and continuing to advance their projects.

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What are your thoughts? I mean, between this political rhetoric, hyperinflation, interest rates, do you have any comments surrounding this?

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Prakash: Well, I was a portfolio manager before getting involved in AnalytixInsight, and we go through these cycles. We are not exactly seeing a lot of systemic risk in the markets, which is basically the biggest risk you face as an investor. These are global cues and global macro risks which come and go. You know, we've had a long environment of benign interest rates, and a wrap-up in rates is inevitable at some point in time in our lives, and we're seeing it now.

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And it's a snap, it's a slingshot kind of response to a stimulus package on the count of the breakdown of the economies because of all the pandemic issues. If you break it down, if it's a rising rate environment, you're going to be seeing a better demand, response to that, or most of it is kind of predicated, as opposed to demand on the supply side.

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I do think from a global macro point of view as a portfolio manager in my previous iteration, we do think that there is a kind of a sector rotation out of, you know, innovative fintech companies that had a very, very good 2021. But it depends on the space that we are in from a business point of view. Fintech is booming. There's a huge capital spending cycle. Almost every financial institution has committed vast amounts of capital. Intesa Sanpaolo, for instance, who is our partner and owns 33 percent of MarketWall, has clearly demarcated over five billion dollars in a digital strategy over the next three years with MarketWall and InvestoPro, our brokerage business being a linchpin in that. 

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When we see things like that on the business side, I kind of take focus on the fundamentals of the business, our partnerships, and our capability to stitch together these milestones and turn it into a recurring revenue stream. And as we ramp up that part of our business, we'll see a value in our company. Right now, our market cap is highly discounted to the intrinsic value of the business, and that's the case with a lot of the businesses who have dropped in value in the last few months. And, as you've seen before, the large companies, they dropped in values, and some of them, you know, went back to their original values after they reported growth in their earnings and revenues, and I think every company will follow that soon.

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Host: I really appreciate these insights. It's definitely a time for investors to lift up the hood and kind of find those really intriguing value plays, and I think you guys kind of follow suit, being really cushioned against anything really related to hyperinflation being in the digital market.

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Prakash: We have absolutely no relation with the inflationary scenario. We are part of the digital super cycle, and I think that's just a one-way traffic right now, mainly on account of the high level of penetration of consumers into the digital realm, whether it is, you know, e-commerce or whether it is stock trading, whether it's wealth management, asset management, and even fintech banking issues.

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So we are part of the digital, you know, super cycle, and that's just one-way traffic right now. So there's going to be more and more capital spending. A lot of financial institutions are going to be spending lots of money in this vertical, and companies like AnalytixInsight will benefit the most, on the back of this conversion.

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Host: Well, on that note, Prakash, I don't think he could have offered better insights today. Thanks so much for your time. 

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Prakash: Thank you. Thank you. 

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Host: Pleasure. On that note, I pass the question off to you guys. Let us know what you think in that comment section below. Consider subscribing because as that news comes down the wire, we will be updating it here. But stay cool, stay awesome, and as always, I look forward to catching you in the next one.