NEW YORK, March 7, 2019 /PRNewswire/ -- Pareteum Corporation (Nasdaq: TEUM), a rapidly growing global cloud software communications platform company with a mission to connect every person and every(thing)™ today announced the issuance of a shareholder update letter from its Executive Chairman and Principal Executive Officer, Hal Turner.
Dear Fellow Shareholders,
In September 2018 I wrote a THANK YOU to you for your demonstrable support of Pareteum as you approved the Artilium acquisition. At that time, it was clear that you provided your support to us which in turn affirmed our clear mandate to hyper-accelerate growth in accretive ways, be it through our continued stellar sales growth, or, through additional successful strategic alliances which is how we began our Artilium acquisition. We certainly expect to continue our market disruption, using our software to fuel our ambitions, business plans and strategies.
Reflecting on our rapid progress since then, it was on October 1, 2018, when our acquisition of Artilium closed. February 12, 2019, just 19 weeks later, marked another milestone in our history as the acquisition of iPass was also completed. The combination of our businesses, and most importantly our people, now forms a powerful new entity that has growing resources and a global vision to even more assertively compete and win, performing even more effectively, as we have proven to be the case from our results. As you saw on February 21, 2019, we announced the inclusion of key members of the iPass leadership team into Pareteum, bringing their talent and experience together to fuel our accelerated growth and scale.
Looking forward, we are a company with ambitious plans for continued growth and profitability. On our upcoming earnings call, scheduled for March 12, 2019, you will hear about our 2018 successes that have laid a strong foundation as we set even more challenging 2019 goals. Our growth will continue from our current customers who continue to buy more from us. We will also see many new customers enter our client rosters, and because of our iPass acquisition, we have opened completely new market segments in the enterprise sector. We fully expect to be the market leader in cloud based communications software as a service, as we execute on our business plan.
Our sales focus now includes our traditional communications service providers, our IoT developers, Smart Cities, and enterprises. These segments represent a significant and growing market opportunity, supporting our aggressive revenue expansion plans, in 2019 and beyond. We have invested in the development of a single software cloud communications platform, coupled with global connectivity access to serve this market opportunity. Our ability to leverage all of our development across these markets increases our capital efficiency and scalability, facilitating the attainment of our growth and profitability goals.
We have established our Pareteum goals for 2019 and communicated them across the new integrated company, with a philosophy that we call "One TEUM".
These are our goals for 2019:
- Attain (and exceed) our revenue target in 2019, through faster conversion of the 36 month contractual revenue backlog (36MCRB)
- Deliver new customer contract wins from our converged integrated product portfolio (TEUM, IPAS and ARTA), to increase our 36MCRB
- Build and execute the go-to-market plan with an integrated fully channel ready "productized" product and services suite, with refined and simplified messaging company- and market-wide
- Achieve consistently positive free cash flow
- Complete a smooth integration of Artilium and iPass within Pareteum: One TEUM
Please note that we intend to provide 2019 guidance during our upcoming Earnings Call on March 12, 2019.
We have been updating you on our progress through our recent press releases, which we will continue to do. As we maintain our laser focus on growth, we measure ourselves by new customers joining us (36MCRB), service deployment (conversion of our 36MCRB), growth from our customer base with new product and services adoption, and clearly taking maximum advantage of our ability to make all of our services available to every customer, no matter if they were an iPass, Artilium, or Pareteum customer …now it is a One TEUM customer base. We expect material productivity enhancement to continue as we use our own software to scale our business. We consider internal communications with our TEUMATES, and with you as shareholders, to be a cornerstone of organization effectiveness.
We are well positioned now to drive dramatic increases in our scale and become the recognized market leader through the value we create for our customers and shareholders. We expect to continue to attract long-term institutional investors who believe in our proven ability to execute our plans and scale the company. Additionally, you will have read that we have improved our capital gain plans by the addition of a $50 million debt facility, initially being used to fully repay iPass' approximately $11 million debt on better terms, and which puts us in a position to act immediately when accretive opportunities, that further improve Pareteum, are identified. We also believe that leveraging our business in this way demonstrates management's confidence in our business and equity value.
As you have heard me say many times, "we are all in sales!" We are driving hard, everyday to acquire new customers, upsell our existing customers and aggressively convert our 36MCRB.
To round out, I will sign off with a quote from the co-founder of LinkedIn, Reid Hoffman: "No matter how brilliant your mind or strategy, if you're playing a solo game, you'll always lose out to a team." Or One TEUM, if you will. We agree.
We look forward to your participation in our earnings call where we will share more details on our 2018 results and our plans for 2019.
Executive Chairman and Principal Executive Officer
Pareteum (NASDAQ: TEUM)
About Pareteum Corporation:
Millions of people and devices are connected around the world using Pareteum's Global Cloud Communications Platform, enhancing their mobile experience. Pareteum unleashes the power of applications and mobile services, bringing secure, ubiquitous, scalable, and seamlessly available voice, video, SMS/text messaging, and data, media and content enablement to our customers, making worldwide communications services easily and economically accessible to everyone. By harnessing the value of our cloud communications platform, Pareteum serves enterprises, communications service providers, early stage innovators, developers, IoT, and telecommunications infrastructure providers Pareteum envisions a new mobile communications experience imagining what will be, and delivering now. Pareteum currently has offices in North America, South America, Spain, Bahrain, Singapore, Indonesia, Germany, Belgium, United Kingdom, Russia, and the Netherlands. For more information please visit: www.pareteum.com.
36 Month Contractual Revenue Backlog Definition:
36 Month Contractual Revenue Backlog (36MCRB), is a Non-GAAP financial measure. It is measured on a forward-looking 36 month snapshot view, monthly, and is generated by the Company's Communications Services Providers, Enterprises, and IoT customers who use communication as a service platform products and services from the company's portfolio. The Pareteum multi-year Software-as-a-Service agreements include service establishment and implementation fees, guaranteed minimum monthly recurring fees, as well as contractually scheduled subscribers (connections), in some cases including subscriber (connections) usage, during the term of the agreement, and, their resulting monthly recurring contractual revenue. There can be no assurances that we reach the total contract revenue backlog. Timing of revenue recognition may vary from actual results.
Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements with respect to Pareteum's plans and objectives, projections, expectations and intentions. These forward-looking statements are based on current expectations, estimates and projections about Pareteum's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Because such statements involve risks and uncertainties, the actual results and performance of Pareteum may differ materially from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, Pareteum also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made here. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from those projected or suggested in Pareteum's filings with the Securities and Exchange Commission, copies of which are available from the SEC or may be obtained upon request from Pareteum Corporation.
Pareteum Investor Relations Contacts:
Chief Financial Officer
+1 212 984 1096
Laura W. Thomas
+1 866-901-3309 Ext. 3
European- Global IR
+1 416 837 0075
SOURCE Pareteum Corporation