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An In-Depth Analysis by DisrupTech

This is the Future of Real Property Transaction

Voxtur Analytics Corp. (CVE: VXTR)

  • Company on track for 100% YoY revenue growth for the next 3 years;
  • Gross Margins from 80 - 90 percent;
  • Peers Valued at $3 billion are losing market share and are unprofitable;
  • Embedded Contracts with > 2200 Municipalities in North America;
  • Fastest Appraisal,Title Search and Insurance, Conveyance and Mortgage Qualification in a Single Platform in the Industry;
  • Management Technical Leaders in Transaction Automation, Data Ingestion and Predictive Analytics.

Appraisals Now (anow) Founder Marty Haldane on Voxtur Merger

Investment Thesis

Revolutionary Real estate transaction platform

Voxtur analytics is the revolutionary Real estate transaction platform that has digitized and automated every step in the real estate ownership transfer process.

It combines appraisal valuation title search and insurance attorney opinion letter and property tax history for more than 140 million homes in the US alone

It’s suite of predictive analytics and analysis tools is in use by some of the largest property investment firms in the world, and is in use in over 2,200 municipalities

Market & Industry Scope

Revolutionary Real estate transaction platform

Appraisal Problem

The average single-family home appraisal costs about $340, while multi-family homes can cost as much as $1,500.

Moreover, once all of the information is collected, it can take up to two weeks to deliver the final report. The process involves coordinating and compiling information from several different sources. This information includes street maps, building sketches, square footage, photographs and market sales data. Public land records and tax records are also required. That data is often in several different locations, adding to the time and expense of the work.

Voxtur Solution

Voxtur provides fully integrated technology valuation platforms for lending, insurance and public clients. They provide a full scope of services for closing on real estate. The business performs everything from valuations and property tax verification to title insurance.

With the firm’s platform, every step of the transaction is stored on a private ledger and secured through a blockchain. This allows Voxtur to host a secure central repository of data that only it and its clients can access.

And this data is key to future value.

To date, the company has over 140 million properties on its platform. The company’s goal is to digitize every appraisal record in the U.S. and Canada. Once the records have been uploaded to its platform, Voxtur estimates the appraisal process can be completed in as little as 36 hours. This includes closing requirements such as property tax verification and title insurance.

Narrowing the turnaround from weeks to a few days allows banks and appraisers to dramatically increase workflow. The shortened time frame and blockchain-secured information help prevent clients from shopping deals in the lag time between valuation and completion. The digital platform can also help coordinate appraisers in the field, and allow them to complete appraisals remotely.

Technology

Tax Profiling: Reshaping the Property Tax Landscape

Imagine having the insight into the accuracy of valuations and tax treatment, or being able to fully understand if an assessment is accurate well before the need to file an appeal. Now you can seek resolution directly with the assessment authority saving considerable time, money and resources.

We are providing municipal staff and decision makers with the knowledge, tools and resources necessary for the development and maintenance of appropriate, compliant and successful tax, assessment and financial policies and practices.

Regardless if the municipality has assessment staff or not, RPTA is a proven revenue generator. Municipalities with staff find the program expands their capabilities allowing them to cover off more properties and more issues. Municipalities without staff utilize MTAG to do the work and generate the revenue for them.

Assesments

Voxtur Assessment is a leading provider of technology solutions for counties and municipalities throughout North America.

Valuation

Modernization real estate valuation by streamlining complex multi-vendor workflows.

Nationwide provider of residential and commercial appraisal services.

Settlement Services

Voxtur leverages best-in-class technologies to accelerate the lending lifecycle and deliver highly personalized experiences.

Mitigating losses with comprehensive Default Settlement Services.

Data & Insights

Voxtur leverages data in new ways to provide unrivaled transparency into real estate asset portfolios.

This is key to identifying and managing collateral and portfolio risk.

Clients & Relationships

An all-star roster of clients

The firm has established relationships with nearly every major U.S. lender.

It provides valuation services for the likes of Morgan Stanley (NYSE: MS), Goldman Sachs Group Inc. (NYSE: GS), Wells Fargo & Co. (NYSE: WFC), and Bank of America Corp. (NYSE: BAC).

Under normal circumstances, building a star-studded rolodex takes years of vetting. But Voxtur decided to buy an express lane. Voxtur – then known as iLookabout (ILA) – strategically acquired Clarocity Corporation in 2019. Clarocity’s valuation software complimented Voxtur’s property tax analytics and access to data. This gained Voxtur a larger data set and more exposure to closing processes.

But the biggest get from Clarocity was the 150 master service agreements with the above list of top-shelf clients and more. This made the deal a no-brainer for visionary Chairman and CEO Gary Yeoman.

The second major factor lifting Voxtur above the fray is its unique relationship with the Bank of Montreal (NYSE: BMO). BMO is the second-largest bank in Canada. Voxtur is the only microcap company in North America with a Class A bank invested, and an unlimited debt facility to purchase new businesses. This pairs well with a leader like Yeoman at the helm. Voxtur is constantly looking for real estate companies that are accretive and synergistic.

Financial Outlook

Resilient through the health crisis and is projected to grow

The cloud of COVID-19 still looms over the overall stock market. Yet real estate has been resilient through the health crisis and is projected to grow into the foreseeable future. The global IT market in real estate was valued at USD $6.16 billion in 2019. The market is expected to grow to USD $12.11 billion by 2025, at a CAGR of 12.2%.

Company revenues have continued to grow through the instability. In its most recent report, revenues grew from CAD $9.9 million to CAD $14.5 million through the first three quarters of 2020 (45% YoY). Yeoman expects the company will be cash flow and EBITDA positive by this summer.

The business has access to an unlimited line of credit to make more acquisitions and fuel growth. The company will also likely seek a listing on a more senior exchange in the U.S. moving forward.

Management and Board of Directors

Experienced Team Leaders

Gary Yeoman, CEO

Voxtur is led by the serially successful Yeoman. It’s impossible to fully understand this company’s potential without knowing what he’s accomplished. He’s a man who always seems to be in the right place at the right time.

Yeoman joined what would become Voxtur in 2013 as ILA’s Chairman. Then in December 2017, he stepped into the leadership role, becoming CEO.

“I came in as a board member. I sat for a few years on the side basically looking at the people that I had the skill sets they had, the programmers, the business plan,” he said. “I quickly came to realize that I loved the people, I loved the capabilities, but I hated the business plan. I said I’m either in or I’m out. I put up $2.5 million of my own money; I said I’m in.”.

Once at the helm, Yeoman set about changing the company’s business plan. He helped it grow through aggressive, strategic acquisitions.

The stock price and valuation have catapulted as a result. Under his watch, the company has grown from a CAD$10 million market cap at 12 cents per share. Today it’s over $1 per share with a market cap of CAD $339 million.

This is a pattern that has played out time and again during Yeoman’s real estate career. Prior to joining Voxtur, Yeoman founded and served as CEO of Altus Group Ltd. (TSX: AIF), a real estate software, data and analytics company. He guided Altus through its IPO in 2005. From there, Altus saw a seven-year growth period during which the company realized a 333% increase in revenues from CAD $75 million to approximately CAD $325 million. Today the firm has a CAD$2 billion market cap.

Yeoman was also a founding investor and board member of Real Matters Inc. (TSX: REAL) in 2004. Real Matters is a proptech firm operating in the appraisal and title markets in the U.S. and Canada. While on the board, Yeoman helped form its business plan. The company has grown into a CAD $1.47 billion market cap since its IPO in 2017.

Video Interview

Jim Albertelli, President

A renowned figure in the real estate industry with multiple successful ventures including building the software for Auction.com before it was eventually sold to eBay Inc (NASDAQ: EBAY), ALAW (a multi-state creditor’s rights law practice), PREO Mortgage (an online mortgage and servicing company, and Brightline Title (A national title, escrow, and closing company).

  • Built a multi-state creditors’ rights law practice (ALAW) representing both institutional and private lenders throughout the loan lifecycle from origination to asset reclamation and collection.
  • Built and sold the first distressed asset auction website, PREO.com, and REDC.com now known as Auction.com.
  • Created and built an online mortgage and servicing company PREO Mortgage and sold to Cerberus Capital Management.
  • Created and built a national title, escrow, and closing company in Brightline Title.
  • Developed multiple technology platforms that continue to support real estate investors and servicers, including InfoEx, Oversite, and BestX.
  • Member of the Florida Bar, the State Bar of Georgia, the United States Supreme Court Bar.
  • On the Board of Advisors for Emory University School of Transactional Law.

There’s plenty of skin in the game here. Yeoman owns 9.8 million shares, and added to his position on February 5. Over the past year, Independent Director Peter Hyde bought CAD $435,000 worth of shares at about CAD $0.15 per share. Board member James Kelsey also purchased shares on the open market on February 10. Kelsey is also the former vice chairman of BMO’s North American Commercial Banking division. Other insiders have bought 3.35 million shares worth CAD $614,000.

Video Interview
Disclaimer

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.