Universal mCloud Sees 36% Revenue Increase Quarter-Over-Quarter

Universal mCloud

Leading AI-powered asset management solutions provider Universal mCloud (TSXV:MCLD) (OTCQB:MCLDF) announced very positive Q2 2019 financial results on Thursday, revealing an impressive 36% increase in revenue quarter-over-quarter from $2.2 million CAD in Q1 to $3 million CAD in Q2.

When compared to fiscal Q2 2018, Universal mCloud’s revenue is up a whopping 443% thanks to its solid expansion strategy.

According to mCloud President and CEO Russ McMeekin, “The success we are having in getting AssetCare™️ and our new assets and customers connected to our AI-powered solutions at buildings, wind farms and oil and gas facilities around the world will continue to lay the foundation in our development of an industry-standard integrated offering.”

It’s no surprise Universal mCloud’s financial results show significant gains, the company has made advancements across all its lines of business this quarter. MCLD operates across three main segments: smart buildings, wind energy, and oil and gas and has been working to expand its reach in all three industries.

During the first six months of the year, MCLD also closed three acquisitions and two financings, as well as signed letters of intent to integrate its AssetCare technologies in the acquired companies.

Let’s take a look at the company’s second-quarter operational highlights and why mCloud is a company that might be worth adding to your watchlist. 

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Universal mCloud’s Q2 2019 Operational Highlights

Universal mCloud signed numerous agreements in Q2 to implement its AssetCare for HVAC in buildings throughout China, including the Heiwado Shopping Center in ChangshaChina, which is part of a nine-year contract. MCLD also signed an AssetCare agreement with Hubei Huayan to connect buildings in 1,200 townships across the Hubei province in China.

MCLD also closed a six-year agreement with TELUS to improve energy efficiency at its flagship office in Ontario. Meanwhile, its Smart Facilities team continued to connect several new retail customers and quick-serve restaurants.

When it comes to its wind energy business, mCloud completed two wind analytics projects in Q2, one of which is based in Europe and another in China, using AssetCare to optimize the performance of wind turbines to improve availability and energy production.

Universal mCloud also unveiled plans in April to deliver AssetCare solutions to oil and gas field workers via head-worn, hands-free smart glasses. 

The company has also closed some sizable acquisitions that have caught the attention of analysts. In July, mCloud closed the previously announced acquisition of Fulcrum Automation Technologies and Autopro Automation Consultants to gain a significant stake in the oil and gas sector.

The acquisition of Autopro, in particular, is expected to bring $35 million CAD in revenue and $5.5 million CAD in EBITDA on a trailing twelve-month basis. 

According to the Q2 2019 financial results, Autopro saw a revenue of $6.99 million CAD in its fiscal second quarter.

According to Echelon Wealth Partners analyst Gianluca Tucci, the acquisition of Fulcrum will “entrench MCLD as an asset management leader in the oil and gas sector” and gives the company the opportunity to “be a one-stop-shop for oil & gas operators, providing the distribution of software and hardware, a subscription-based analytics platform and real-time decision making.”

Tucci offered the company a “speculative buy” rating and raised its price target from $0.80 CAD to $1.20 CAD in April following the news.

July has also proven to be a busy month for mCloud, as well. The company announced that it has made its first deliveries of AssetCare to six oil and gas facilities in Alberta, Canada which will result in annual contracted recurring revenues that total $1 million CAD across these facilities.

It will be exciting to see what Universal mCloud will achieve in the second half of the year. If the first half is any indication of what’s to come, investors might want to consider adding MCLD to their portfolios.

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