Helix TCS Reports 85% Increase in Q3 Revenue
December 14th, 2017
Exclusive, News, Top News
The cannabis industry is projected to exceed $50 billion in size by 2022, according to Cowen & Co., driven by the legalization of medical and recreational cannabis nationwide. Despite the industry’s rapid growth, it remains highly fragmented with few established leaders. Helix TCS Inc. (OTC Pink: HLIX) CEO Zachary L. Venegas and Director Scott Ogur recognized these dynamics and have started building a compelling business in the space.
In this article, we will take a look at the company’s progress in building near-term revenue from security and transportation services, as well as its long-term plans to become a leader in data and competitive intelligence.
Rising Revenue, Narrowing Loss
Helix TCS reported revenue that increased in the third quarter of 2017 85% from the prior year Q3, to $1,129,746, driven by a substantial increase in its number of clients and a full quarter of revenue from its Security Grade acquisition. Not surprisingly, operating expenses rose in response to these expanded service offerings, but the company’s net losses narrowed by 31% to $255,357 due to changes in the fair value of certain liabilities and strong performance in the economics of the underlying business.
The acquisition of Security Grade in June provided the company with a leading surveillance security solution targeting the burgeoning cannabis industry. With a strong emphasis on surveillance technology, the company continues to expand its suite of operating solutions with services like IT security, building fortification, private investigations, and advanced video surveillance programs and software designed for the cannabis industry.
“With existing product lines that are well aligned with this ongoing strategy, the purchase of Security Grade will boost our capacity to scale our offerings as we continue to expand into new markets, and benefit our existing client base by increasing the breadth of the integrated capabilities we’re able to offer,” said Helix TCS CEO Zachary L. Venegas in a press release announcing the acquisition in June of 2017.
Long-term Strategy Emerging
Helix TCS has a dual-focus on building near-term revenue through security services and long-term value through competitive intelligence and innovative data solutions. With its customer base expanding for security and transportation solutions, the company is building valuable relationships across the value chain before expanding into a variety of targeted segments and ultimately defining new products and services targeting these customers.
Over the past two years, the company has been quietly building up its long-term focus on competitive intelligence and data services. The company’s November 2016 agreement with BioTrackTHC provided it with a data partnership with the largest seed-to-sale inventory tracking solution for governments and businesses. Meanwhile, its internal CannaBase solution has become a leading cannabis wholesale marketplace that provides real-time inventory and exchange data.
The company believes that data will become the critical commodity in the cannabis industry, as it has in several other industries, and the company has quietly developed itself through partnerships, acquisitions, and an in-house suite of upcoming services to take a unique and commanding position.
Helix TCS Inc. (OTC Pink: HLIX) has built a strong foundation for growth in the security and transportation business, as evidenced by its 85% top-line growth rate last quarter. At the same time, the company continues to build up its presence in the data and competitive intelligence side of the business. Investors may want to consider the stock given this dual focus, excellent execution on plan, and the strong near-term growth that the business witnessed during the third quarter.
For more information, visit the company’s website at www.helixtcs.com.
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