Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) Has Introduced Cloud-Based AI Analytics That Could Potentially Save Companies Millions of Dollars
in Energy Costs
Advances in artificial intelligence (AI) and machine learning are disrupting numerous industries – the latest of which is the energy management sector.
Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) has developed cloud-based AI analytics that effectively replace expensive hardware with low-fee software. This development could potentially save companies hundreds of thousands and even millions of dollars a year!
Here’s how it works:
Companies like Honeywell International Inc. and Siemens AG have been traditionally serving large-scale clients by installing expensive centralized HVAC control systems for their buildings.
Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) is changing that paradigm by running everything through cloud-based AI analytics. Their software is able to monitor and efficiently regulate the temperature of every square inch of a building using AI and machine learning without human intervention.
In light of this development, it’s little wonder that Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) has quietly netted over 100 blue-chip clients in the past two years.
In July, mCloud completed the acquisition of Fulcrum Automation Technologies and Autopro Automation Consultants Ltd., making it a major technology provider for the oil and gas industry. Not only will the addition of Autopro provide the company with a deep industry expertise and a strong customer base, it will also add C$35 million in revenue and C$5.5 million in EBITDA on a trailing twelve-month basis
With three core business segments that include Smart Buildings, Smart Energy, and Smart Processes, Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) has the capability to completely transform how businesses function across a number of major industries.
The company’s AssetCareTM is a subscription-based, AI-powered service that brings five kinds of technology together to create efficiencies for underserved assets in these three segments. These include AI and analytics, drones and aerial survey, 3D digital models, mobile (smart glasses), and IoT sensors.
Universal mCloud sets the gold standard for Industrial A.I. | Source: Proactive Investors
More Good News for Universal mCloud Corp & Its investors
AI couldn’t be hotter than it is right now. From corporations to governments, everyone is jumping on the AI revolution.
Most recently, the United States announced President Trump will be signing an executive order to create an American AI Initiative designed to dedicate resources and funnel investments into AI research in a bid to get on the forefront of the AI race.
And wait, there’s more:
According to Johnson Controls’ 2018 Energy Efficiency Indicator (EEI) survey, U.S. companies have plans to increase their investments in smart building measures such as building controls and systems integration.
A survey of close to 2,000 facility and energy management executives from 20 countries discovered that 57% of organizations in the U.S. and 59% of global organizations plan to increase investment in energy efficiency in 2019.
All of this should be exciting news for Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF), a microcap stock with big plans — which is now being lauded as a major player in the management of energy assets and which has plans to become the next billion-dollar AI company.
Universal mCloud Corp., which has both cloud-based AI technology that is revolutionizing the energy asset management industry AND solid, experienced management from energy product conglomerates, is quickly becoming an analyst favorite.
In fact, analysts are saying that Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) has steady prospects with unlimited upside. And that’s not all …
Analysts Think mCloud’s Stock Price Will Double
That’s why analysts are all over Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF), with Echelon Wealth Partners’ Analyst Gianluca Tucci offering the company a “speculative buy” rating and suggesting that its stock price will triple in a year from C$0.38 to C$1.20.
Tucci maintained his “Speculative Buy” rating and a one-year price target of C$1.20 for a projected return of 196% thanks to its transformational acquisitions throughout 2018 and 2019.
Wall Street firm Maxim Group analysts Nehal Chokshi and Jack Vander Aarde have also weighed in, setting its one-year price target for the company at twice its current value, with its focus on small to mid-sized opportunities channel partnerships and strong management resulting in Maxim giving them “confidence that Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) will become a material player in the industrial asset management market.”
And this market is not small.
According to the US Department of Energy4, on average 30% of the energy used in American commercial buildings is wasted, and $57-billion is wasted on energy every year. That’s where Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) sees their opening. The company is all about energy efficiency and cutting costs, using targeted AI and analytics to making energy infrastructure assets such as HVAC systems, wind turbines, and electrical transformers “smart,” which can deliver approximately 15-20% in energy cost savings. The best part is that clients won’t have to pay a dime until they start seeing operational savings.
In Smart Buildings using mCloud’s AssetCare5 technology for energy asset management, mCloud-compatible smart thermostats are installed throughout a building, communicating remotely with the AssetCare6 platform. The company then monitors, analyzes and optimizes the HVAC assets, offering increased visibility and effective, worry-free management. And under its SaaS subscription model, Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) makes money when the client saves money. So if a typical quick-serve restaurant saves $150 a month on electricity costs, Universal mCloud would then pocket $50 worth of those costs. Technology advisory firm Arc Advisory Group7 says this approach represents a “win-win” situation for both mCloud and its clients.
It Practically “Sells Itself”
This makes the decision to subscribe to AssetCare stunningly simple. As Echelon’s Tucci puts it, “AssetCare is a solution that sells itself.” Increasingly, corporations worldwide are looking for new ways to improve bottom lines and minimize energy consumption, and subscribing to AssetCare offers them the lowest of low-hanging fruit. Parallel to these cost-cutting needs is local regulations in markets such as the United States, UK and China that continue to trend towards requiring more energy-efficient buildings. Local jurisdictions all over the world are passing building new efficiency compliance standards, and this trend will only intensify.
AssetCare’s solution is moving from a “nice-to-have” to a “must-have” as companies who subscribe to AssetCare can stay ahead of regulatory curves while saving on costs. This also allows them to talk up their lower carbon footprint in annual non-financial reporting disclosures, burnishing their corporate image and social responsibility with efficient energy usage scores.
To make the purchase decision for the customer even easier: A blockbuster group of Fortune 500 clients has already signed onto the AssetCare service, including brands like Starbucks, Bank of America, McDonalds, Cinemark, Wendy’s, Dairy Queen and Michaels Stores. Starbucks, for instance, is focused on improving energy usage from its HVAC units across over 9,500 company-operated stores in the US.
According to Starbucks energy & resources manager Patrick Leonard, “mCloud’s AssetCare solution is scalable and allows us to gain energy savings with minimal capital investment.”
In Canada, the company has also signed a landmark reseller agreement with TELUS Corp. (TSE: T) to deliver the AssetCare solution to the Canadian market, targeting buildings with critical HVAC requirements. This means that TELUS will combine its IoT connectivity with the deep domain asset expertise of mCloud to sell to its customers a package of “Smart Building” 4G IoT connected solutions. This market is currently made up of almost 500,000 commercial buildings8 with over 800 square meters of floor space, and is backed by a $50-million fund from TELUS to pay for building retrofits to make them IoT ready.
Connectible Energy Assets: One of the World’s Largest Untapped Markets
The real strength of mCloud’s AssetCare platform lies in its application to other categories of assets, including wind turbines, and electrical transformers. The company currently has a vast and diverse portfolio of clients from different industries, including Lockheed Martin and Southern California Edison.
That’s why the number of connected assets has grown so quickly to almost 30,000 by the end of 2018 — a startling jump of over 300% since the start of the year. But it also plans to increase its number of 500,000 connected assets in the next three to five years. According to mCloud, there are over 10 million connectable assets within its immediate reach, making this one of the largest untapped markets in the world. This trend will only accelerate with the introduction of 5G networks over the next few years, which will drive down costs and increase performance and the quality of the analysis.
Here’s the best part: The more assets they connect, the better AssetCare works. The IoT sensors connected to these energy assets feed the mCloud’s AI engine with data, whose neural networks then process that data and smarter over time. Through AI analytics and machine learning, AssetCare allows these assets to operate a peak performance and deliver even more savings over time. As long as the assets are connected, AssetCare will be generating a high-margin recurring revenue stream for the foreseeable future.
An Absolute Game-Changer for Wind Farms
In 2017, Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) acquired the joint technology rights for Norwin wind turbine technology9. Then last year, the company purchased NGRAIN10, which supplies battle damage assessment and repair capabilities on F-35 and F-22 stealth fighters for clients such as Lockheed Martin. Immediately after, it bolstered its 3D solution by buying up CSA Inc11., a leader in laser scanning and 3D modeling for nuclear facilities and utilities in the US, giving mCloud the added ability to capture asset details in the field and create accurate 3D models from the raw field data.
Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) combined these capabilities to offer high-resolution aerial surveys of wind turbines using drones, to semi-autonomously inspect the turbine blades for damage that might impact energy performance. Once problems have been identified, mCloud’s team would provide guidance to on-field technicians to make the needed repairs.
mCloud: 3D Photogrammetry of Wind Turbines
As the only company in the world with the right combination of technologies and patents needed to offer AI-powered digital blade inspections, the Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) has essentially cornered a new market that will only grow as its solutions continue its broad roll-out
In March, Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) signed a commercial partnership with Ecotricity’s Britwind in the UK to access over 1,200 wind turbines in UK and continental Europe.
The company’s AI solution will be utilized to improve wind turbine performance and reliability and enhance turbine operation of Britwind’s turbines through a five-year warranty, offering customers a complete end-to-end upgrade solution and providing mCloud with access to a new market.
Cracking the World’s Second-Largest Market
Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) is also making impressive inroads into China, the fastest-growing IoT and artificial intelligence market in the world, as well as the market with almost half of the world’s installed wind power capacity (at 48.5%12!) Needless to say, if there’s a market in which the company can further accelerate its already explosive growth, it’s China. With its renewed commitment to sustainable development, as well as pledges from government leaders to meet state carbon targets, China’s regulatory authorities have stepped up pressure and regulations to increase energy efficiency.
The company has made a number of smart and calculated moves in this large market by focusing on building relationships first. The company is partnering with local companies that boast established client bases, including SCN Ltd13.—one of the top 20 commercial building contractors in China.
With SCN, Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) has now inked two tech deals, with one signed in January – a nine-year contract in which its partner SCN agreed with Heiwado14 to implement its AssetCare HVAC at a shopping center in Changsha, Hunan Province. In February, the company signed a partnership agreement with Hubei Huayan15 Zhidian Technology Co. Ltd. to deliver smart-building technology in China. This would be a landmark deal16, as Hubei Huayan has IoT product services relationships with clients that manage over 1,000 buildings in China.
Exceptional Management With Expertise in Advanced Technologies
One of the reasons analysts love Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) is its top-flight management team, led by Russ McMeekin, a former high-level Honeywell executive who once served as President and General Manager of Honeywell’s Hi-Spec Software Solutions business unit, the advanced software technology and optimization division of Honeywell International. McMeekin has assembled a management team around him, with a wealth of senior management experience in cloud and AI technologies. Here’s a quick look at key players:
Russ McMeekin, President and CEO
Russel H. McMeekin has led an illustrious career in executive and technical roles in the public and private sectors. McMeekin worked at Honeywell International for 11 years in various capacities including President of an e-business which oversaw Myplant (serving the industrial community), Myfacilities (serving the commercial building industry) and MyAircraft, a venture with Honeywell, I2 and BF Goodrich. McMeekin also led Honeywell’s Advanced Software Division in the Asia Pacific, building satellite offices in India, Australia, Korea and a JV in China. In his role as Executive Chairman of Yokogawa Venture Group, he led the acquisitions of Industrial Evolution and KBC Technologies, an energy software and consulting company in the United Kingdom. He was also CEO of SCI Energy; President and CEO of Progressive Gaming International; and President and CEO of ViaFone, Inc.
Michael Sicuro, Co-Founder & Non-Executive Chair
Michael Sicuro has had broad and diversified operating experience with companies ranging from $50 million in revenues to over $4 billion with 10,000 employees in the tech sector. He was previously Executive VP, Chief Executive & Financial Officer at CCS Medical Holdings, Inc.; Chief Financial Officer, Secretary & Treasurer for Progressive Gaming International Corp.; Chief Financial Officer of Imperial Capital Bancorp, Inc.; Chief Financial Officer & Senior Vice President of Asyst Technologies, Inc.; and Chief Financial Officer & Vice President at Lightspan, Inc.
Barry Po, Chief Product Officer
Dr. Barry Po. joined mCloud in 2018 by way of mCloud’s acquisition of NGRAIN (Canada) Corporation (“NGRAIN”) and was recently announced17 the Chief Product Officer. As part of NGRAIN’s senior leadership, he oversaw product management, marketing, and business development. He brings with him 15 years of product leadership experience working for some of the world’s most recognized brands. Over the course of Dr. Po’s career, he has taken numerous high-tech products and services to market, delivering products to millions of customers in over 80 countries around the world.
Tino Lanza, Co-Founder & Chief Growth Officer
Lanza served as the Chief Executive Officer at INOVx Solutions, Inc. from 2006 to 2015. He is versed in applying advanced technologies to traditional asset-intensive industries with many years of direct experience. He worked with Yokogawa Venture Group as senior vice-president of integration and has held leadership roles at Honeywell and ExxonMobil.
Chantal Schutz, Executive VP and Chief Financial Officer
Chantal Shutz, a Chartered Professional Accountant, brings over 20 years of financial and operating experience to the company. Having held leadership roles in both private and publicly traded companies of varying sizes and sectors, she has deep expertise in strategic planning, financial reporting, and corporate development. Chantal began her career articling for both KPMG and PwC, and most recently held the role of Chief Executive Officer at Vancouver-based NYCE Sensors. She currently sits on the board of Clean Seed Capital Group (CSX.V) and NYCE Sensors.
The company’s AI software is eating the energy management sector
For those looking to invest in artificial intelligence, this is their opportunity to get in at the start of potentially the next unicorn software-as-a-service upstart whose AI analytics platform is already generating hard revenue—an incredibly rare find.
An unfair advantage that keeps getting better
According to Echelon Wealth, mCloud’s “Pro-forma Q4 2019 coupled with sizeable acquisitions” gives the company an unfair advantage that keeps getting better.
With a market cap of only CAD $30 million, at least two analysts who have started covering Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) say the company should be worth double its current share price.
The only player in one of the world’s largest untapped market
Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) generates recurring revenue from each of its IoT connected assets. With almost 30,000 connected assets at the end of the year, they see a total addressable market of 10 million connectible assets.
Over 100 blue-chip clients
The company’s diverse portfolio of clients includes Starbucks, Dairy Queen, Bank of America, Wendy’s, McDonald’s and Cinemark. That’s because for most partners, choosing Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) is a quick and easy decision.
Going into 2019, the company has tripled its number of connected assets, while increasing its revenue run rate from $9.5 million to $14 million. Best of all, it’s already closing in on EBITDA break-even.
Maxim Group analysts’ confidence in Universal mCloud Corp. (TSX.V:MCLD) (OTCQB:MCLDF) is backed by its “strong management.” Former senior Honeywell executive Russ McMeekin has amassed a veteran team of senior executives with years of experience in advanced technologies.