Pivotree is well positioned to target a secular and multi-decade long digital transformation growth market

Pivotree (TSX: PVT) is a digital commerce service provider that works with some of the world’s biggest brands, retailers, distributors and manufacturers to design, build, and operate their mission critical digital commerce ecosystems to meet the ever changing demands of today’s consumers.

The company’s customer base is focused on large enterprises and includes globally recognized names like Aldo, CAE, Lorex, and Gourmet Foods. In fact, many of the company’s more than 250 clients include Fortune 1000 companies.

Pivotree’s clients are attracted to the company’s ability to leverage its in-house developed intellectual property and expert capabilities to provide end-to-end solutions, and managed services across the major categories of commerce, supply chain and data management solutions that form the backbone of their digital commerce ecosystems.

At a time when enterprises of all shapes and sizes need to adapt in a rapidly changing technology landscape, Pivotree has an impressive track record to help companies achieve their ambitious growth objectives through frictionless commerce experiences.

Targeting a secular growth market

Digital transformation is a secular trend and Pivotree’s suite of offerings enable companies to navigate the changing technology landscape to drive competitive advantage. Pivotree’s unique expertise allows it to act as a trusted partner to stand up to these complex environments and generate a recurring revenue stream from managed services and digital products.

Impressive gross profit margins of more than 40% allow for high operating leverage and a clear path to profitable growth. With three consecutive record revenue quarters, the company has operated near Adjusted EBITDA break-even and expects to become Adjusted EBITDA positive towards the end of 2022. 

To help fuel growth, the company closed two acquisitions in 2021, including Bridge Solutions Group, a supply chain service provider and Codifyd, a data management solutions company. Pivoteee’s balance sheet is backed by an untapped $25 million credit facility that can be allocated towards further M&A opportunities to help fuel organic growth.

Pivotree operates in a large and fairly fragmented industry where there is no shortage of growth opportunities. The company’s target market is the top 1000 large enterprise companies that make up a significant portion of the US$4 trillion US retail (B2C) industry and the US$17 trillion US manufacturing and distribution (B2B) industries.

Frictionless Commerce is a multi-decade long journey

The COVID-19 pandemic acted as a wake-up call for companies that had fallen behind in their digital transformation. Pivotree was able to provide the necessary support to retailers and manufacturers to quickly adapt and scale their digital infrastructure to meet a surge in demand and changing customer expectations.

Heading into the three year mark of the pandemic, the world has, for the most part, returned to a sense of normalcy. Yet at the same time, customers have grown accustomed to a different shopping experience that emphasizes speed, reliability, and safety. Not every commerce transaction happens online, but just about every commerce transaction is digitally assisted and the level of digital interaction between online and brick and mortar stores will only increase.

Companies are therefore focusing on supporting the back-end systems (e.g., supply chain and data management) that are a vital part of offering consumers and B2B customers the frictionless purchase experience they expect. Pivotree aims to guide companies to modern, headless commerce architectures that will allow for a higher level of flexibility and adaptation to ever-changing customer requirements.

That said, the digital transformation and changing needs of enterprises have evolved so much in the past few decades and the velocity with which change occurs will continue to increase as more enabling technologies come to market.

Pivotree is assembling the complementary capabilities, products and services that will make them an essential one-stop-shop, and long-term partner to help businesses create a world where commerce is truly frictionless.