The global software-defined wide area network (%SDWAN) market is experiencing robust growth, projected to expand from $3.4 billion in 2022 to $13.7 billion by 2027 at a compound annual growth rate of 31.9%. This rapid growth is driven by digital transformation initiatives across businesses. By 2025, it’s expected that 65% of enterprises will implement SD-WAN, compared with about 30% in 2020.
Software-defined wide-area networking (SD-WAN) is an automated, programmatic approach to managing enterprise network connectivity and circuit costs. SD-WAN enables cost-efficient management of cloud applications by dynamically routing traffic across the most efficient WAN path based on conditions, security, Quality-of-Service (QoS), and cost. These services help clients reduce costs, improve operational efficiency, increase revenues and enhance overall business performance.
Offering a fully managed service (SD-WAN) suite, is %TurniumTechnologyGroup (TSXV: $TTGI; FSE: E48) – a Canadian company that has become an industry leader with its proprietary software.
Turnium Delivers an All-In-One Solution
Turnium Technology Group Inc. provides software that helps businesses stay connected to the internet and cloud services. The Vancouver-based company specializes in SD-WAN solutions tailored for cost-sensitive applications like retail, small-medium businesses, and branch offices.
Turnium enables partners to deliver branded connectivity services through its multi-tenant software platform. TTGI’s licensing model and easy provisioning tools reduce overhead costs for channel partners. The company currently serves over 1,000 customers globally.
Their state-of-the-art platform delivers reliability, improved bandwidth, and sub-second failover using wireless connections like LTE and StarLink. The company’s proprietary bonding technology combines multiple networks so data, voice, and transactions continue even if one connection fails. This is done cost effectively using readily available hardware.
With its white-label platform, service providers can deploy TTGI’s SD-WAN under their own brand to reduce churn and gain more control over customer-provided connectivity.
The endeavor is spearheaded by %DerekSpratt – a four-decade veteran of the Canadian tech space, having founded and lead public and private firms in the mobile, IoT and Analytics market segments (PCS Wireless, Intrinsyc, Mobidia), as well as being an early investor in many other tech firms. His efforts are backed by an A-class board of directors with decades of experience in the tech and capital markets sectors.
TTGI’s meteoric year-in review
For its fiscal Q3/2023, Turnium reported revenue of $1.48 million and gross margin of $917,000. Its monthly recurring revenue (MRR) range is $375-400K – and growing. It trades at an attractive 1.7x EV/Sales multiple versus SaaS comparables at 4-5x EV/Sales.
According to their recently released corporate update and FY2024 forecast, with a $2M debt facility fully paid down and major cost cutting completed, Turnium has signed new multi-year deals that are improving overall revenue and MRR heading into 2024. This includes a 5-year OEM licensing agreement signed in July with a large South-East Asian tech group to provide enterprise and government offerings across Indonesia. The company also announced a 3-year contract with UK-based SDWAN & SASE Solutions signed in May that could increase revenue by $24M over 2 years at $2M in monthly recurring revenue with 80%+ gross margins. These new long-term deals confirm demand for Turnium’s government and enterprise-grade connectivity solutions worldwide. With strengthened finances and growing customer traction, the company is gaining momentum to capture more market share.
“We continue to find success in the Asia Pacific region, as our partners look for cost-effective connectivity solutions for their Enterprise and Government customers. As our global partner network (Comms365, Damen IT Groep, Metro Lightspeed, SDWAN & SASE Solutions), continues to expand, we are seeing rapid revenue growth, giving us a clear near-term pathway to positive cash flow, and we expect FY2024 revenue growth close to the overall market along with double-digit EBITDA margins.”
-Derek Spratt, Chief Executive Officer at TTGI
By ensuring reliable, resilient connectivity and full management of the service, Turnium’s user-friendly SD-WAN solutions enable businesses across industries to avoid costly downtime. With internet downtime costing some businesses up to $5,600 per minute, the company’s platform aims to make connectivity accessible for non-technical staff – and thus become a leader in the rapidly-growing sector.
About Turnium
Turnium Technology Group Inc. (TSXV: TTGI; FSE: E48) develops and commercializes a software-defined wide area networking (SD-WAN) platform. Its SD-WAN platform is used to build communication networks that connect a business’ multiple branches or locations to each other, as well as to multiple cloud-hosted applications, data, and storage.
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