Company Interview / Making strides in the Middle East with India in sight

Mohan Jesudason of X2M Connect states that their Middle East business is thriving, with strong reception and an imminent rollout of their devices. Projecting $2 million EBITDA for every 500,000 devices, Mohan notes plans to expand a successful licensing model to markets like India.

Focus on cost reductions is crucial, achieved by offshoring to South Korea and automating deployments, maintaining a sustainable cost base while aiming for profitability. With margins rising from 33% to 50%, Mohan attributes growth to increased SaaS and recurring revenue, now comprising 25% of total revenues.

Mohan explains that a $2 million loan facility enhances balance sheet flexibility, and despite disappointing share prices, he highlights shareholder confidence. Market cap is seen at par with revenue, it's increasingly a software business with a tripling in recurring revenues percentages.