Retail Analytics Firm Reports Major Gains From AI Partnerships and Cost Savings

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VSBLTY Groupe Technologies Corp. (VSBY:CSE; VSBGF:OTC; 5VS:FSE) has reported a 250% year-over-year increase in revenue for the third quarter of 2024, totaling US$350,000. The company also announced a reduction in its quarterly operating loss, which dropped to US$1.4 million from US$2.9 million in the prior year - a US$1.5 million improvement. This achievement was attributed to increased revenues from the Winkel Master Service Agreement and Shelf Nine acquisitions, along with US$1.3 million in cost savings realized through an extensive austerity initiative.

The cost-saving measures included a 50% reduction in cloud computing expenses through system consolidation and improved network architecture. Commenting on the results, VSBLTY Co-founder and CEO Jay Hutton stated in the news release, “We are confident that our business activities are beginning to show evidence of enhanced traction. The goal of the last two quarters has been to reduce expenses and increase revenues. I am pleased that our aggressive focus on cost reduction and near-term revenue opportunities has positioned the company to move towards increased profitability.”

VSBLTY also highlighted its strategic approach to growth, driven by acquisitions and partnerships, which have delivered meaningful revenue gains. Hutton noted a robust sales pipeline spanning retail and security sectors, expressing optimism for sustained growth in these areas.

What is Retail Analytics?

According to Fortune Business Insights, in a November 11 report, the global retail analytics market was valued at US$7.56 billion in 2023 and was projected to reach US$31.08 billion by 2032. This would mark a compound annual growth rate (CAGR) of 17.2%. The report emphasized that retail analytics aids businesses in identifying customer preferences, optimizing inventory, and improving revenue generation. AI-integrated retail solutions, in particular, have delivered "intelligent insights to fuel sales and enhance customer experience," helping retailers tailor their strategies based on real-time customer data.

In an analysis from Net Guru on November 27, predictive analytics was described as revolutionizing the retail sector by enabling companies to maximize short-term performance and achieve long-term growth. The report noted that retailers could use customer data to offer highly personalized in-store and online experiences. Predictive models allowed businesses to optimize inventory management, anticipate customer needs, and implement effective trade promotion strategies. Examples included real-time pricing adjustments, improved supply chain efficiency, and enhanced customer engagement through personalized product recommendations and offers.

Fox 40, reporting on November 28, highlighted the transformative trends in retail analytics, such as the integration of predictive analytics and real-time data processing. These tools allowed retailers to forecast customer behavior, optimize inventory, and develop dynamic pricing strategies, which improved both operational efficiency and customer satisfaction. The report also pointed to the growing use of AI and machine learning for uncovering patterns and anomalies in customer data, enabling retailers to enhance personalized marketing campaigns and streamline omnichannel customer journeys.

The Driving Forces Behind VSBLTY 

VSBLTY’s recent performance and strategic initiatives underscore its positioning within the growing in-store media and AI-driven security markets. According to the company’s investor presentation, VSBLTY is tapping into a $100 billion in-store media opportunity through innovative technologies and high-impact partnerships. The company’s flagship offerings, including its "Store as a Medium" concept, leverage AI and computer vision to enhance both marketing and security solutions. These offerings aim to provide actionable insights through real-time analytics, demographic data, and advertising validation.

Key catalysts include the acquisition of Shelf Nine, which added 4,500 screens in major U.S. markets, and a joint venture with AB InBev to expand the Winkel Retail Media Network in Latin America. VSBLTY has also advanced its market reach with a finalized agreement to roll out the largest digital out-of-home network in the Middle East. Additionally, its "Secure Our Schools" initiative demonstrates its application of AI-powered security solutions, with potential for further adoption in educational institutions.

Ownership and Share Structure

According to Refinitiv, 1.87% of VSBLTY's stock is held by management and insiders. 

Strategic investor Actus Interactive Holdings Inc. has 2.10%.

Institutions own 0.04%

The rest is with retail investors.

VSBLTY had a market cap of CA$3.66 million, with 48.5 million shares outstanding. It trades in a 52-week period between CA$1.65 and CA$0.08.