Nerds On Site Inc. (CSE:NERD) is a mobile IT support company that provides small to medium-sized enterprises (SME) with various services, including network installation and support, PC setup and tailored software services, among others. Nerds On Site also provides its services to residential and corporate users. A notable corporate client is Canadian Tire (TSX:CTC.A). The company is currently operating in 10 cities across Canada and is planning on expanding their business into targeted areas in the US.
The company uses a revenue sharing model in Canada, where their EntrepreNERDS (eNerds: independent contractors) share between 37 percent to 50 percent in revenue from each contract that they sign. Using this model has resulted in the company producing an annual revenue of $8 to $10 million. In total, the company has generated over $160 million in revenue since its inception in 1995. Nerds On Site will be moving its revenue share model down to the US as they expand. The company will be selling franchises to approximately 150 eNerds in 10 cities in the US, rolling-out an ‘area developer franchise’ model. The company expects this to double its revenue to $19 million annually.
The backbone of the company rests on its highly-trained and vetted eNerds, who all have backgrounds in technology and are tested for real world experience before they are allowed to interact with customers. Each eNerd is certified by industry leaders such as Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT), Dell (NYSE:DVMT), Amazon (NASDAQ:AMZN) and Cisco (NASDAQ:CSCO) to ensure that they can provide clients with IT solutions for any interface. The eNerds are also encouraged to work as a team through the company’s IamaNerd.com interface, a web-based database of IT solutions and a system for billing, purchasing and communication between the company, its customers and contractors.
In a report released by Research and Markets, the global managed services market is expected to grow at a compounded annual growth rate (CAGR) of 11.23 percent between 2018 and 2022. The growth of the market is being driven by the adoption of internet of things (IoT) solutions that connect hardware devices, embedded software, communications services and managed services to one another usually through a cloud-based application.
Nerds On Site is partnered with industry leaders to ensure that their eNerds are qualified to handle issues on any user interface or technology. The company has also partnered with Apple (NASDAQ:AAPL) to provide mobile solutions for SMEs that routinely use iPads and iPhones in their offices.
Stadnyk and Partners is a notable shareholder in the company and provides their marketing skills. Go Capital, a private capital company is also significantly invested in the company. In addition to their major shareholders, Nerds On Site’s management team is also notably invested in the company, holding 50 percent of the shares. Management is also comprised of certified technology experts that have experience working in various industries.
Nerds on Site Company Highlights
- Generating annual revenue of $8 to $10 million.
- Generated over $160 million in revenue since the company’s inception.
- 23.7 percent increase in Q3 2019 revenue.
- Nerds On Site is the fifth largest VOIP seller for FIBERNETICS in Canada.
- Operating in 10 cities in Canada with 128 uniquely trained consultants.
- Aggressively expanding into the US with franchise model.
- North American M&A expansion initiative is targeting operations that have between $1.5 million to $2.5 million in annual contract revenue.
- Trademarked red Volkswagen NerdMobile™ has created a recognizable brand.
- Expects to double revenue to $19 million once established in the US.
- eNerds are certified by industry leaders and are vigorously tested by the company for technology knowledge.
- Partnered with industry leaders such as Google, Microsoft, Dell, Amazon and Cisco.
- Agreement in place with Apple for providing mobile solutions to SMEs that use iPads and iPhones.
- Canadian Tire is a major client.