Substrate AI, the BME Growth-listed Artificial Intelligence software company, has increased its revenue by 123% in 1H2022.1.3 million, results that are in line with the business plan set out in the IPO information document.
The company has also fulfilled its development plan during the first half of 2022 and is already commercializing six artificial intelligence products in the agriculture, energy, human resources and financial technology sectors.
- At Agriculture markets PAM, the AI dairy farm manager, through its subsidiary Boalvet. This solution increases profitability per animal by more than 35% and significantly reduces drug costs. In addition, it is developing a pioneering technique to increase the profitability of medical cannabis crops, a business that will experience a strong boost after the recent decision of Congress to give free rein to its medicinal use.
- At Energy has started marketing two products, a predictive maintenance system for solar plants developed together with the giant Canadian Solar, and another for energy saving in large buildings and infrastructures in collaboration with an international engineering firm.
- At Fintech has developed with France's IbanFirst, the European leader in multi-currency B2B payment services, an AI sales manager that is in the process of being commercialized and continues to sell its AI strategies for investing in the stock market in both Europe and the US through various channels.
- At Human Resources revenues come from marketing Fleebe as a search engine for free AI-enabled courses, to which will be added in the fall the development of Fleebe Corporate, a tool that uses AI to retain and leverage hidden talent in large organizations.
- At Health the company has closed in the first half of the year the purchase of the 70% from Cuarta Dimensión Médica SL, a company with extensive experience in its sector and with which Substrate AI is developing a SaaS service for diagnostic imaging with AI for the veterinary world that will soon be transferred to humans.
In addition, some of these products and solutions created by Substrate AI are developed for sale in 'plug and play' through Microsoft's Azure marketplace, of which it is a partner, and with whom it is already commercializing its first product under this formula.
According to the CEO of Substrate AI, Iván GarcíaWe are making a great effort to put products on the market that can democratize the use of AI, so that SMEs can benefit from its application and the cost savings it entails, aspects to be taken into account in the current economic context, which is key to driving the transition to a more sustainable economy.
Reorienting the strategy
In fact, the economic uncertainty caused by the war in Ukraine and escalating inflation have led the company to reorient its strategy, prioritizing organic growth (with the commercialization of these six AI solutions and those in the pipeline)as opposed to inorganic. This decision explains why the listed company has updated its business projections with a total revenue forecast of 3.9 million euros in 2022 and 8.2 million euros in 2023, which represents annual increases of more than 100%.
And all of this is favored by the highly dynamic and potential environment in which the Substrate AI business is developing, as the industry of B2B SaaS solutions with AI has grown by more than 500% in the last 7 years. and, according to the consulting firm Gartner, is worth some $172 billion a year. These systems represent 70% of all software systems used by organizations. Within this industry, AI services will be the fastest growing, with figures close to 30% over the next few years. This data means that the company is trading at 10 times 2022 sales when the historical average for its sector is 25 times and some companies in its environment are currently trading at 100 times sales.
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