Armin Kavousi, CEO at MeeW A/S, talks about the company's business model and how it has fastgrown in a short time. MeeW is doing a new share issue in connection with an IPO and Armin thereby tells us how the issue proceeds will be used to internationalize MeeW.
Can you tell us about MeeW and the kind of technology solutions that the company offers?
We work with everything from hardware and software to MachineLearning and Ai. Our solutions includes brainscanners for preventing stress at workplaces and are also used as a tool for kids with ADHD. The solutions we build are for ourselves and for others, and we build them under our two different branches: (i) MeeW BRANDS and (ii) MeeW STUDIOS.
(i) MeeW BRANDs - developing varieties of own brands and products in hardware, Ai, MachineLearning and simple SaaS products.
(ii) MeeW STUDIOS - servicing other companies, ministries and big companies with mainly software development –in both the newest software technologies and in the older, more specialized technologies.
Can you provide an introduction to MeeW's business model, and explain whether it is scalable? If it is scalable, could you elaborate on how that is achieved?
Given the company’s diverse portfolio, we operate with a diverse business model. We use SaaS and subscriptions under MeeW BRANDS products. We have monthly service level agreements, project hire and long 1-3 year agreements under MeeW STUDIOS. We have a consultancy where we charge by the hour, and lastly, under MeeW INVEST, we exit the companies we invest in, after a period of 3-5 years from our initial investment.
Our robust revenue and EBITDA quarter-over-quarter for the past 2 years have grown substantially. This is due to the fact that most of our revenue is reoccurring. As we say in MeeW – once you try one of our services, you are bound to use more of the different offerings we have - and thus, we have a very low churn on customers, and build on top of long-term, ARR and MRR.
We are growing our revenue by more than 100% year-over-year, and this is only based on one office in Copenhagen, Denmark. We have therefore proven, that we can scale centralized. However, as our business grows domestically and internationally, we will be opening more offices and start internationalizing our brands by 2023 or 2024, which will scale up our business model. What you see projected in our 2023 goal, which by the way is an 80% increase in revenue, is, in my opinion, not only very realistic, but it is conservative.
MeeW has chosen to conduct an IPO on Spotlight Stock Market. Can you tell us how the company plans to use these funds and what the priorities will be going forward?
Our plans of how to use the funds can be read in our memorandum, but in short terms, we will:
- Open more offices.
- Launch and re-launch more brands/products.
- Start international sales and marketing.
- Invest in more companies – and also exit some of the existing.
- Build awareness in the US.
One of MeeW's brands, Split Shift, offers solutions to help organizations manage their workforce more effectively through a collaborative environment, customized solutions and automating processes. Can you elaborate on how your platform is different from other similar solutions in the market?
Split Shift is built by us to compete with Microsoft and Meta. The reason is that we use Teams, FaceBook etc. to manage our communication, files, photos, job ads and more. We built and launched Split Shift a couple of years ago to prove that there was a market for companies and ministries who doesn’t appreciate that Americans have the majority of our data. I can reveal that the Chinese market is quiet interested in this product – due to the same reason: Data.
We offer the same kind of product as Teams, FaceBook and Slack – but it is on your servers. Your data. Your control. We tested the product with great success back in 2019/2020, but took it off the market to focus our efforts on MeeW STUDIOS. Our plan is to re-launch Split Shift.
What do you see as the biggest challenges facing MeeW in the tech industry, and how do you plan to address them?
First and foremost, we don’t see competition. I just wanted to get that out of the way. The challanges, however, are the same as everybody else faces – automation, Ai and the pace, at which we are moving forward. We plan to implement Ai to make our company more lean, efficient and future-proof. It will cut costs, it will add on to our advantages and it will help us build stronger and better products for generations to come. I believe that we will experience the same as we already have dealt with in MeeW STUDIOS: some companies will use old systems, and some will require the newest tech, hence Ai. Since MeeW STUDIOS has the robustness to both cater for old, specialized tech and new tech, it will not be the tech that challenges companies – but if you have a team, that can adapt and have a track-record to prove, that we can.
MeeW is operating in a highly competitive industry. What sets your technology solutions apart from other similar businesses, and how do you plan to stay ahead of the competition?
As mentioned, we don’t really see any competition. I get the fact that most people have been through some marketing or analytical education, where all the school-books talked about competition, but we simply don’t spend time looking at other companies. See MeeW as a ”closed off creative space”, where our team has the freedom to think freely and come up with the newest, most creative and best solutions. You might find companies that either invest, as we do, have similar products as we do, or services the C25 companies as we do – but to be clear: the combination of invest, service, brands, academy and consultancy is unique. Therefore, you shouldn’t invest in MeeW if you think we are like any other company – you should invest in MeeW becaue we are not.
Your financial statements show significant growth in revenue and gross profit over the past year (2022). What factors do you attribute to this growth and how do you plan to continue this trend going forward?
Our revene goal for 2023 is conservative – despite the fact that it is 65% increase from 2022. As mentioned, regarding our business model, we have a solid ARR and MRR, and new clients have already been signed in January 2023. So, as we are building on top of our current business model, signing new clients and growing our revenue and gross profit, we will add on to top and bottom line as we expand geographically and digitally. We will launch more products and focus on our core business. In that way, we expect to see a positive growth year-over-year due to the mere fact that our core business is growing. The exits from our investments and launch of more brands will be cherries on the top.
Can you tell us about any upcoming product launches or other initiatives that MeeW has planned, and how do you anticipate these will impact the company's financial performance in the future?
We expect to launch several brands this year, that we have mentioned in the memorandum, i.e. our Politiko-software, our fintech solution and our podcasting community. As mentioned earlier, it will add to the existing healthy growth and result, but it will be as cherries on top – for now at least. The reason is hat our core business is growing so fast, that no matter which brand we launch, it will have to growh extremely fast to keep up. I am not saying it is insignificant, I am just saying that our core business is expected to hit between 80 - 100.000.000 DKK in revenue over the next 2-5 years, and that is a hard growth to follow for many brands, including our own.
Can you share what motivates you in your work and drives you to achieve MeeW's visions?
I think that motivation, passion, reason and purpose are all mis-labeled excuses. I think foolish people do what they hate to do every day. I think that intelligent people do what they love every day. But I think that pure geniuses do what is needed, but will do it joyfully. A genius will put his/her love and energy into whatever comes their way, and whatever we put our love into will grow. Just like our garden, our relationships, our children, our body and mind. So, life itself motivates me. The mere fact that I can breathe. Everything from there is just a blessing, and I will pour my energy into whatever opportunity arises.
So, to answer your question, MeeWs vision is nothing that will be achieved, it is something that pulls us towards it. We are already living our vision. We are already building on top of it and will continue to do so.
Disclaimer: This is an interview that has been done on behalf of the company. Impala Nordic or people behind Impala Nordic owns no shares in the company at the time of the interview. // Detta är en intervju som har gjorts på uppdrag av bolaget. Impala Nordic eller personer bakom Impala Nordic äger inga aktier i bolaget vid upprättandet av intervjun.