Iddriven Inc (OTCMKTS:IDDR)’s CEO, Arend Verweij, recently wrote to shareholders of the company, updating them on the company’s growth. He began the letter by reminding shareholders about IDDR going public, in December 2015. Furthermore, the company already released its first product, the Identity and Access Management software solution, IAM, during the 1Q2016. The CEO then went on to reveal that the management was working to build a sales and marketing infrastructure, which would lead to large sales volume, during the current quarter.
In his letter, Mr. Verweij also revealed that long-term investors had become attracted to IDDR. He claimed that he had been receiving a large number of queries, from potential investors, about the company’s current and future business. It should be noted here that Iddriven’s IAM tend to limit user access to data required by the particular user. As such, the user would not be able to access data, which does not concern him or his position at an organization. This tends to limit the accidental loss or theft of data.
Mr. Verweij also voiced the company’s belief that every organization in the world needs this type of solution, regardless of its size. As such, the solution has been kept cost effective and can even be used by a business with just a dozen or so employees. Furthermore, Iddriven’s presentation of the product, through its partners and competitive pricing will help it better realize its true growth potential. Industry analysts expect that the demand driven market for IAM would grow at an annual rate of 14.85%, reaching $18.3 billion, in 2019.
With gross margins of over 90%, IDDR finds it feasible to hire software resellers for presenting its product to the corporate world. As of the 2Q2016, Iddriven’s product is still considered fairly new to the market and has not yet been able to make the company profitable. However, IDDR expects that it would soon change. Even now, the company is engaging with new channel partners, in the Europe and US. Most recently, the company engaged with two channel partners in Europe and the US, namely PATECCO and Oxford Consulting Group. The two new partners are considered to be technology consulting firms, in Germany and the West Coast, respectively. Particular attention is being paid to the EU, mainly due to the fact that IDDR has a subsidiary, based in the Netherlands.
Another technology firm that provides sellers with technological assistance to kick start their businesses is Square Inc (NYSE:SQ). Unfortunately, the current year has been tough for investors of the company, after it reported a wider than expected loss for its 1Q2016. Furthermore, the company has been silent since filing of the 1Q2016 financial results, only to announce, earlier this month, that it would be reporting the 2Q2016 results on August 3, 2016.
In 1Q2016, SQ reported a lower than expected profit, from its most
important business segment. Square Capital, although only a small part of the portfolio, has also been the most profitable one. Furthermore, much like IDDR, SQ is not profitable as yet and is dependent upon rising growth levels, to be able to do so.