Diving into the Company Itself & an InvestoPro Demo

Jason: Hey everyone, thanks for joining us. Of course, we're back here with Scott, and we're going to do a little intro with Prakash coming soon. Just letting everyone know, I know people have asked, but today we're going to learn more about AnalytixInsight as well as do a little demo towards the second half. But first things first, Scott, how are you?

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Scott: I'm excellent, Jason. 

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Jason: Good, good. I know you're about to do some sailing, so obviously thanks for taking the time. But here, in an intro, I guess, you know, we're going to do a little overview. We're going to kick it off. Let's imagine that we both walk into the hotel elevator on the 30th floor, and I say, "Wow, Scott, interesting. Tell me a little bit about AnalytixInsight. I know nothing.” You know, what would you kind of give us the elevator pitch?

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Scott: Yeah, sure. Yeah, AnalytixInsight, we're a Canadian fintech company, an AI company in our heart. So we built a machine learning platform to help provide analytics on financial fundamentals of publicly traded companies worldwide. We've gone on to partner with one of the leading banks in Europe, and we've built together for them a stock trading research and trading application that we'll be demoing later on today. So the sector space is a hot space, most notably recently because of Robinhood, and we're in that game.

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Jason: Yeah, no, awesome. A lot of those kinds of platforms, you know, Robinhood, Wealthsimple, Questtrade, all these things people can definitely be very familiar with. I'm sure some people watching this probably use those platforms. So obviously, you know, a space that's definitely been growing. And I guess here, let's dive into the business side of it, the money-making side of it. Talk me through kind of, how the company makes money, and then we'll lead that into kind of the blue sky, you know, opportunity for the company itself.

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Scott: Yeah, sure. So what we do is we create content. We're in the content creation business, and we do that mostly through machine-created narratives, which our platform is capable of. So we do a lot of computations, calculations, narrative sentence structures, and so on. So what that allows us to do is generate research reports on demand and we do that on 50,000 publicly traded companies. We deliver those reports to Refinitiv, which is the former spin-out from Thomson Reuters. They're one of the largest data providers in the business today. They were just recently acquired by the London Stock Exchange for 27 billion. So we're a data supplier to them, and we deliver a lot of content material through to them. We also have, like I said, partnered with one of Europe's leading banks, and together, we're building a number of fintech applications for them, not only stock trading-related, but other fintech research-related. And we have a product, InvestoPro, that we're soon to launch. We've actually introduced it, and that’s really our blue sky, even though that division is already making money. It's already profitable, already doing. That division is doing six million or so a year in revenue. But the real blue sky for our story will be when we launch the stock research and trading platform and start generating revenues from it. And so we've launched the platform. We are just getting ready to enable the stock trading component, but we're already attracting some two and a half million users that are coming per month to the platform just for the information that we're already providing there. We've partnered with Samsung in Europe on this initiative, so it's a big initiative and that will be a real key driver of our revenue growth in our company moving forward. 

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Jason: Yeah, no love it. Obviously, exciting and we'll get to the demo here in a few minutes.

Kind of the last question for you. I wanted to chat and kind of just, you know, how you guys are a little different than those people who have never heard of the company. How are you guys different from other trading platforms like Robinhood, Questrade, and Wealthsimple that a lot of people are used to and obviously migrating to? Curious why you guys think you're different and better. 

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Scott: Yeah, I know, which is a very fair question. I get asked it a lot.

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I like using analogies. It's my analytical brain that comes through. So, I look at it in the world of financial trading. It's a bit like if you were to take an airplane analogy. So, at the front of the plane, you have business class with full service, full everything. Back of the plane is really a no-frills, low-cost. We are aiming for the middle of the plane, so the premium economy if you will, whereby a user will be able to trade a stock and manage their investments with fewer referrals but do it on their own at a cheaper cost, yet have a lot more tools available to them than what they would have if it was just a straight discount trading platform or free trading platform only.

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So, with the market that we're in, it is to provide not just trading services because there are a number of trading platforms. What we're doing is delivering rich content information that allows investors who wish to trade on their own or to trade in a discount fashion to be able to do that equipped with much better information to make better investment decisions and trading decisions. So, we arm them with a lot of really good material and information to be able to do that, and so we're a low-cost trading solution. We're not free, but we're really rich in content. And so, we think that market is a big market, and we're adding our AI capabilities to that in terms of our research, fundamental analytics, and so on that we deliver, helps to provide that user with a comfortable assistance as they manage their own investments and their own trading ideas. 

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Jason: Yeah, no, extremely interesting, and I know we'll dive into this in the future, but, you know, for those, of course, that are using Wealthsimple or Robinhood you know, there's not much else there in terms of info, even people scrolling on Yahoo Finance. There's not too much there from generated content and other kind of analytical, no pun intended, information for people to look at. But, maybe without further ado, here I'll pass you, you know, kind of share screens, and you know, we can hop into a few of these, and I think really kind of make it real for a few people. So, here, just shot you host, and you know, let's dive into a few examples. 

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Scott: So, first of all, let's talk about what we're going to do. We're going to demo the InvestoPro, a platform that we have built and are rolling out in Europe, and our partner there is Intesa Sanpaolo, the third-largest bank in Europe and the European Union. A little bit more about, to make it a few stats, this is the new online trading platform for the bank. This is, I'm looking, we're looking at the bank's website. This is the press release, an introduction issued by them.

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So, together, we're launching InvestoPro, and that will be Intesa Sanpaolo’s latest online trading platform. 

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A little bit more about Intesa Sanpaolo and who they are. They were awarded the best bank in Italy. They're headquartered in Italy. They have around 12 million multi-channel clients. Seven and a half million of those clients are using their banking app. So, this is a sizable bank. It's also a bank that's expecting some four billion euro net income for 2021. So, some investors have been a little worried about the strength of the banks that are Italian-based, and this is clearly one that's strong and profitable.

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Now, we'll just go straight to InvestoPro and do a walk here on what InvestoPro is all about. So, we cover on InvestoPro, this is live. Anyone can go and use this, collecting user ID and logins. But there's no cost right now to get any of this information that I'm showing you today. We're covering equities, bonds, ETFs, derivatives, currencies, commodities, and so on the platform. So, it's very rich in content. Crypto is something that we'll look to add in the future.

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So, we'll spend our time today on equities. If we were to, for example, hunt through and select any of the European exchanges, I'll stick to an Italian one and just scroll through and pick. We'll do a little car theme here. So, let's say we wanted to have a look at Ferrari, an Italian-based company. And someone might be interested in researching this company a bit.

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So, we have charts. Charts, everyone has charts. But this is where the Capital Cube overview is, where our analytics come through. We're high in visual content, a little five-star rating system. So quickly, you can identify this company. It's got strong functions. Technical analysis is pretty good. The dividend quality is mid-range, and the ESG score as well. And then, what is coming, as soon as we're enabled for client accounts, we'll have the portfolio compatibility score here. So, a user will know instantly whether this is an appropriate investment for their account depending on their risk tolerance that they set up when they first opened their account.

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Then, we have a number of ratios allowing a user to do their calculations on any of those things. We have a fairly deep dive fundamental analysis, again, lots of ratios. If you wanted to study what the five-year history, the P/E Ratio, there’s just some Italian rolling through here. But we have all that in graphic and visual format, very easy for a user to be able to look through and perform that analysis. Bringing in the analyst, these are the human analyst consensus ratings on the stock. Here we’re showing the target price. This graph shows in green what the consensus target price is compared to the actual stock price itself, that’s the five-year history. So you can kind of get a sense whether the analysts have been on track, yes or no, with the performance of the company. 

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And today, there are 22 analysts that cover it. This is a one-year graph of how the target prices have changed. The analysts have become a little less bullish on this particular stock of late. We generate content, so this is content that's created by our team, editorials by our subsidiary MarketWall, talking about why on June 15th Ferrari's stock was down after Goldman Sachs downgraded the stock. You can read that and learn more about it. We have other content as well. You can get a sense of who the institutional investors are in the story. We have videos that are created. These are the future expectations of both revenues and earnings for the company. It's new content and so forth.

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And then, say, 'Okay, I'd like to have a little deeper.' We can jump into the company profile itself. And here, in this section, again, without leaving the platform, we're able to pull in the investor materials, the investor presentation

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Jason: I mean, well, while it's loading here. And again, I want to kind of reiterate, you guys cover 50,000 stocks worldwide, equities that you obviously are constantly adding to that number. And a lot of this content, machine-driven, which is why you guys can scale so hard. So, obviously, congratulations. That looks extremely beautiful so far. 

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And I want to invite, at this point, before we go forward, anyone with questions, please, please, please drop them below. I want to make sure we mix in a bunch of Q&A about the platform. And, you know, please, try and give it a shot. As Scott mentioned, it is free, so you can see all the stuff we're showing you for your favorite company. So, here, Scott, if you want to keep going.

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Scott: This is the investor presentation of Ferrari. So, a user can scroll through that and read it at their leisure. And if you want to learn more about the upcoming dates of when they're reporting their quarter, the management team, investor relations information forth. So, it gives a very good information package of the company itself without having to leave the platform.

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And then, to do a further dive, here's where a user could buy a research report created by our CapitalCube platform. And just to be clear, you pointed out 50,000 companies. We cover, in InvestoPro, we're covering European and large-cap US, but on our Capital Cube research, we do cover 50,000 worldwide. So, InvestoPro is set up to allow research and trade only on the European and large-cap US at this point. So, here, you could buy a report, and that report would be a machine-created report that would look something like this. This is Tesla, but that's the style of report that you would receive. And for 10 euros per month, you have access to those types of reports.

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And then, to execute the trade, and this feature will be turned on shortly, you would simply hit 'sell,' and that would allow you to execute the trade and enter your trade accordingly. We have on the platform a lot of trading ideas for users, and users who might be looking for trade ideas. And we're again really rich in creating content. So, we're creating, for example, a weekly magazine. This is a digital magazine that gets to your inbox. It's again in Italian only, for the address for the Italian users. But it's a very high-quality research magazine that allows you to kind of thumb through on a Saturday morning to pick what your trade ideas might be. If you're brand new to this thing, we have a learning academy as well, and with that you can go in and take courses to either enable your own virtual trading or to start using some of the electronic courses that we have. So, very much geared toward users who are learning to invest on their own and who want to be able to have information to do so. And we have US stocks covered as well, like I mentioned. So, keeping with the car theme, if you were wanting to research Tesla, same things applying in the same format that we just went through. So, really visual of all things.

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And the markets closed just now as we're speaking, so this isn't live, but this is where you would see the most recent trades, for example. And again, the fundamental quality of the company. Tesla doesn't pay a dividend, so therefore there is no dividend. So, with a very simple visual, you can learn a lot about a company and how it's performing very quickly. And that's what we aim to do, to be able to help users make speedy research decisions all from one platform without having to leave the platform.

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Jason:  Yeah, look, I love it. And again, I really do encourage some people to give it a try and come back with any questions. And you'll look to, you know, we'll talk about this in terms of general business opportunities moving forward. And, you know, the fact that, you know, really, you're seeing a lot of investing move towards people doing their own investing, their own research, and a lot of new investors in the past year, year and a half since COVID. So, love it. I love the opportunity. And again, I want to invite anyone with questions, please drop it below. We'll do a Q&A coming up.

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But Scott, anything else you want to kind of cover about the platform? And I do expect we'll do a lot more of these. But anything you want to throw in now?

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Scott: Yeah, I think we're recording this here on August 4th, and Robinhood was up sharply today. So, there's clearly a lot of interest in this sector space. And Robinhood obviously is operating in the US. We're operating in Europe. We are looking to build the same thing as what we built in the European market. We're preparing to do so for the North American market as well. But the main point that I would re-emphasize is the opportunity for the blue sky opportunity that's in front of us as we roll it out in Europe and will soon be loading clients on for trading. Intesa Sanpaolo has over a million customers that are already using their banking app on their mobile phones. So, that's a built-in user base that's already accustomed to at least the electronic channels.

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You'll be able, should they choose to open a trading account, they'll be able to do that using the same login credentials as they do for their banking application. So,  within that alone is a large built-in addressable audience. And then we'll be taking it out to other European customers as well beyond the reach of Intesa Sanpaolo. And we see that as a very exciting opportunity for growth throughout the European marketplace. And then our next phase, of course, is to get ready to do the same post. It's a very exciting chapter for the company, for sure."

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Jason: Yeah, look, a lot of good teasers to cover in future videos, you know, growth plans and things like that. So, Scott, thanks so much for taking the time. You know, enjoy the sailing, and I look forward to chatting again soon. 

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‍Scott: Always a pleasure, Jason. Thank you. Take care.