Artificial Intelligence (AI)
Voxtur’s AI & Blockchain Tech Revolutionizing $1.6T Real Estate Industry
An In-Depth Analysis by DisrupTech
| Updated 12/05/2021
Real estate is a broken industry.
Early investors are scrambling to get a piece of the action.
Voxtur Analytics just started trading under the new ticker symbol “VXTR” in Canada and “VXTRF” in the United States.
But this stock is already generating a very significant buzz.
Voxtur’s most recent funding round raised proceeds of $35 million. But the great news is, most of the investments came from well-respected investors in the know. This gives smart investors the early opportunity to get in before things really take off.
With Voxtur’s recent acquisitions, the puzzle is nearing completion.
Things could take off very quickly from here.
The latest financial raise adds to Voxtur’s strong balance sheet. But, those proceeds are minuscule when compared to Voxtur’s UNLIMITED credit deal with The Bank of Montreal.
Voxtur is the only small-cap company in North America to have a relationship with a Class-A Bank to acquire any company they see as worthwhile to add to its entire ecosystem.
This allows for Voxtur to pounce on any accretive opportunity faster than any competitor and will allow them to take over every aspect of the PropTech game.
All this packed into a company at 10% the valuation of its peers. Competitors that only provide services in sub-segments of Voxtur’s entire chain of command.
Voxtur’s peers have values of $3 Billion, currently losing market share, and are UNPROFITABLE.
The company’s gross margins are between 80 – 90 percent and the company is on track for 100% YoY revenue growth for the next three years.
Voxtur’s timing to introduce the complete PropTech platform could not be better.
Real estate was a broken business. This is the technological revolution that reinvents the wheel.
Voxtur has connected the dots missing in the entire real estate chain and packaged it into a technology platform that also improves each individual process.
To understand how this is all possible, it’s important to understand the people behind Voxtur’s rise.
The real secret to how Voxtur has disrupted the PropTech industry is the deep-rooted success within the real estate industry.
Gary Yeoman, founder and Executive Chairman, was formerly in charge of the international real estate portfolio of Magna International (NYSE:MGA, TSE:MG), before founding Altus Group (TSE:AIF) and an early investor and board member for Real Matters (OTCMKTS:RLLMF, TSE:REAL), all significant players in their respective fields.
Gary led Altus through an IPO in 2005 and a 7-year growth period during which the company realized a 333% increase in revenues from $75M to approximately $325M.
His expertise in valuation, appraisal and tax analysis is the perfect combination to take the company into its targeted role as PropTech platform of choice for the portfolio managers, lenders, analysts, government entities, and insurers who conduct the trillions of dollars in real estate transactions globally every day.
Jim Albertelli, president of Voxtur, is the company’s secret technology weapon.
Jim has built a strong reputation in the real estate law industry serving Fannie Mae, Ginnie Mae, and Freddie Mac – the who’s-who of the origination, serving, and securitization world. He developed the first eBay-style auction house technology for distressed real estate.
In short, he connected all components of real estate with full transparency (mortgage, title, and auction), which he eventually sold to auction.com.
He has made his name successfully addressing the inefficiencies across the real estate/PropTech marketplace.
And it is looking like he has done it again.
He has committed to a 5-year term with Voxtur to integrate the culmination of 20 years as a lawyer and technologist specializing in real estate law and computer programming.
With Gary and Jim at the helm, Voxtur has become the complete real estate transaction value-chain loop – from the loan origination system – to the mortgage serving platform – to the trading platform.
An end-to-end, encrypted, validated database engine that has yet to be done effectively to date.
And Marty Haldane, a third-generation appraiser, recently merged his company Appraisals Now at anow.com with Voxtur to complete the Voxtur ecosystem.
This strategic acquisition bolsters recurring revenues and accelerates the development of Voxtur’s data ingestion engine. This allows clients to achieve optimal efficiency and cost savings.
Blowout Q1 2021 Quarter is Only the Beginning
Voxtur started 2021 like its revolutionary real estate transaction platform: at the speed of light.
The company followed through on robust growth initiatives achieving a 183% increase in revenue year-over-year for the first quarter.
That sounds impressive enough. But, to understand why this growth story is poised to continue, you have to understand the milestones achieved by Voxtur during Q1.
Voxtur merged a collection of title and several mortgage technologies all under one roof to start the quarter off. This unification of disruptive technologies, tackling different segments along the real estate transaction chain, laid the foundation for future growth.
Looking at the latest financials, the impressive revenue increase included only one full month of full operations with those assets working together. The numbers would’ve looked even more impressive if the deal was completed at the beginning of the quarter rather than part way through.
By annualizing the numbers in Voxtur’s Q1 financials using March as a base case, the company will achieve an $87.6 million annual revenue run rate.
That’s a 300% increase from last year.
Another key point to remember is that the financials are not including data stemming from Voxtur’s latest synergistic acquisition of Appraisals Now (Anow).
The Anow acquisition added the only end-to-end, encrypted, route-optimized, AI-enabled platform in North America to the growing arsenal of Voxtur technology. Once Anow’s system is fully baked into the Voxtur machine – integrating mortgage lenders, services, and investors – it will produce at a very high margin.
These are exciting times for shareholders. Revenues are growing, margins are continuing to expand, and more pieces of the puzzle are ready to come into the mix.
Competition (or lack thereof)
But let’s compare Voxtur, currently valued at ~$250 million, to its rather more glamorous competitor, States Title, who is in the process of relaunching as Doma after merging with Capitol Investment Corp V (NYSE:CAP, CAP.UN) a $345 million SPAC put together by Mark Ein of L. Dyson Dryden.
Doma is the bright and shiny Rolls Royce among Proptech contenders; Larry Summers, former Treasury Secretary, is a board member. Lennar Corp., which builds new homes in 22 states in more than 77 popular real estate markets across the US, is an anchor client and significant shareholder.
JP Morgan Chase former COO Matt Zames, current president of Cerberus, is Chairman of the Board.
This transaction, along with the $300 million accompanying PIPE, values Doma at >$3 billion.
Top-tier investors anchoring the PIPE overall include funds and accounts managed by BlackRock, Fidelity Management & Research Company LLC, The Gores Group, Hedosophia, SB Management, a subsidiary of SoftBank Group Corp., and Wells Capital. Existing Doma shareholder, Lennar, has also committed to the PIPE, and Spencer Rascoff, co-founder and former CEO of Zillow Group, has committed a personal investment to the PIPE.
Despite the marquis investors and board, States Title/ Doma is planning to lose money for the next two years (at least).
Voxtur, on the other hand, is growing revenue substantially while increasing margin.
What’s the difference?
Doma is essentially a title insurance and escrow company that has decided to build out its platform to incorporate other elements of the PropTech ecosystem.
They plan to leverage their existing customer base to drive traction in their other in-development segments.
Voxtur is the Complete Package
But Voxtur, who is currently servicing 2,200 municipalities in North America through their tax platform alone, has already aggregated appraisal and valuation, title insurance, conveyance, attorney opinion letters, and mortgage origination into a fully functional digital closing system, populated by a deep and detailed database of every lien, mortgage, sale and tax record of nearly every residential property in North America.
Voxtur has literally redefined real estate conveyance and transaction flow through a series of business combinations completed over the last twelve months.
On March 30, the company announced it had absorbed Appraisals Now, also known as ANow, a software platform that provides a suite of tools that automates the appraisal process in real estate valuation.
Anow and its Nexus platform now join Clarocity, Brightline, Apex Software, Municipal Tax Advisory Group, and Versite – a database of court decisions pertaining to bankruptcies, delinquent and defaulted loans – on the Voxtur Analytics platform to provide a total powerful suite of tools for lenders, investors, buyers and sellers of real estate across North America.
And more are on the way. According to CEO Gary Yeoman, Canada’s Bank of Montreal has committed an “unlimited” debt facility to fuel the company’s acquisition roadmap.
But this is not a case of an overly cashed-up corporation trying to gobble up all its competitors to whittle down the landscape—quite the opposite.
The Voxtur team has identified acquisition targets with surgical precision that will see the entire real estate transactional flow reduced by as much as 80 percent in terms of time and cost.
Imagine a house or commercial building transaction closing in one week instead of the standard 3 to 6 months?
Imagine being able to analyze the tax burden on any given property in real-time, online, instantly, and challenge assessments to confirm appropriate taxation.
Imagine zero-error digital closings that facilitate remote transaction conclusions with vendors, lenders and all the legal touchpoints incorporated.
This is Software as a Service on steroids, with customers from each business line becoming customers for the other segments by way of natural extension. Increasing sales revenue with no additional cost of sales.
The noteworthy aspect of Voxtur’s newly emerged combined business from an investment perspective is the sheer scope of its new combined product offering and the rapidly accelerating revenues being generated.
“Our gross margin is somewhere around 50 percent right now”, says Yeoman. “but we are aiming for above 75% profit margin.”
While Mr. Yeoman and his team seem to be the winning combination and are highly confident in the company’s current numbers. What investors don’t know yet, is the real economies-of-scale will kick in starting next year.
This is the perfect time for an investor to realize this current opportunity before the increase in margins proves what management already knows. A company that will be valued at 30 – 40x revenue.
Until then, he says:
“We’re tending to a lot of irons in a lot of fires. I can’t talk about these transactions at this time for competitive reasons.”
Trulytics Inc., the author owns shares of Voxtur Analytics. Trulytics Inc. has been retained by Voxtur Analytics to provide editorial and content creation services to the company targeting the financial community. Trulytics Inc are the beneficiaries of a consulting option agreement to purchase 1 million shares of Voxtur at any time for a period of 5 years at $1.15 per share. Therefore, Trulytics will benefit from any increase in the share price of Voxtur Analytics.
The statements made in this publication constitute forward looking statements under the definition of various securities acts in jurisdictions including Canada, the United States, and the rest of the world. Such statements should not be relied upon to make an investment decision and readers of this content are advised to consult with a registered investment professional prior to making any investment decision.
All statements made in this content are derived from information provided by the company and is publicly available. No warranty of accuracy is expressed or implied. This article constitutes an advertisement and should be read in that context.