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.
Hal Turner
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.
Forward-Looking Statements:
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:
Ted O'Donnell
Chief Financial Officer
+1 212 984 1096
InvestorRelations@pareteum.com
Laura W. Thomas
Investor Relations
+1 866-901-3309 Ext. 3
Carrie Howes
Rayleigh Capital
European- Global IR
+1 416 837 0075
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SOURCE Pareteum Corporation