Tracesafe Announces Significant Revenue Increase with Cruise Ship Companies Contracts
TraceSafe recorded a record high revenue of $1.3 million in Q1, 8.7 times higher than their first revenue-generating quarter last year.
As the Cruise Ship Industry Gets Ready to Reopen, Pent Up Travel Demand Could Present a Significant Opportunity for Investors
Few industries were hit as hard by the Covid-19 pandemic as the travel industry. However, signs are pointing towards recovery as global vaccination efforts ramp up – and this presents a financial opportunity for investors who know where to look.
Travel stocks are overheating, with many airlines, cruise lines, and hotels experiencing triple-digit growth from their 52-weeks lows. But for investors looking to take advantage of pent up travel demand, there are still opportunities. Just look at TraceSafe Inc. (CSE: TSF), a company whose wearable tech and workforce connectivity solutions are helping cruise lines return to operations safely post-pandemic.
TraceSafe recorded a record high revenue of $1.3 million in Q1, 8.7 times higher than their first revenue-generating quarter last year. The company also recently announced several new partnership agreements, which will add to revenue potential for Q2 and beyond, including signed contracts with large cruise line operators.
With the CDC releasing additional guidelines and eyeing a mid-summer reopening for many cruise routes, Q2 could have massive upside potential for TraceSafe stock.
Sailing Onwards and Upwards
TraceSafe Inc. (CSE: TSF) is a Canadian-listed technology company specializing in contact tracing and location management through a suite of Bluetooth enable wearables. Their technology has already been deployed to quarantine hotspots, and now they are helping the hard-hit cruise industry resume operations safely.
In January, TraceSafe revealed that they had formed a strategic cruise ship division based on positive industry feedback for their products and continuing partnerships with global cruise ship operators. Tests of their wearables are already underway with several sizable European cruise companies.
This week, TraceSafe announced they had smashed Q2 revenue from last year, recognizing $1.3 million USD in revenue for Q1.
TraceSafe entered into a two-year agreement with Fred Olsen Cruise Lines for their wearable technology and a five-year technology agreement with another top-tier cruise ship customer.
Due to their complexity, the onboarding process for TraceSafe contacts can take between 3 and 6 months to close; as such, large sales may not be reflected in revenue the same quarter they are received.
Given the high amount of activity in Q1 and so far in Q2, investors can expect a positive impact on TraceSafe’s stock price in Q2 and into the latter half of the year.
TraceSafe Is Helping Keep Cruise Passengers Safe
Pre-pandemic, the global cruise line industry experienced a healthy average annual growth rate of around 5.4%, generating over $150 billion in direct and indirect revenue.
As cruise lines around the world get set to resume operations, many are turning to technologies like TraceSafe to keep their passengers and crew healthy and safe and to avoid any future shutdowns.
Recently updated guidelines from the U.S. Centre for Disease Control (CDC) directed at the cruise industry set a positive tone for those eagerly awaiting reopening. However, safety remains at the forefront of operating recommendations, including guidelines for technology-enabled proximity tracing and alerts.
TraceSafe’s patented low-power Bluetooth tags, wristbands, and gateways provide reliable service, even in remote areas that can only be reached by satellite. Interaction data is collected anonymously and secured by top-level encryption.
Pilot projects are already underway in conjunction with several major European cruise operators, and results have been well-received.
TraceSafe’s patented technology and global experience in providing contact tracing technology and location management make the company well-positioned for substantial growth as cruise operators stage their comeback.
Cruise Ship Stock Bounced Back
Cruise ship stocks are on a tear, leading the S&P 500 for the first time since the start of the pandemic. Wall Street and investor enthusiasm were met by an optimistic outlook from major cruise ship companies on the industry’s future.
Norwegian Cruise Line Holdings (NCLH) was trading at $32.44, up 158% from its 52-week low of $12. 56
Rival cruise lines Carnival (CCL) and Royal Caribbean were also up, trading 110% and 148% above 52-week lows, respectively.
Very Possible Cruise Sailings Resume in July
In a much-awaited update to its previously released Framework for Conditional Sailing Order, the CDC recently issued a new list of requirements and recommendations for cruise ship service resumption. A spokesperson for the CDC stated that complying cruise lines might be able to sail from U.S. ports as early as mid-July.
Included in the release are updated guidelines for Covid-testing, vaccinations, mask requirements, and off-shore excursions.
The letter provided some much-needed clarification and earned praise from some major cruise line operators eager to get back to business.
Cruise operators in other countries began resuming service on select sailing in Europe, Asia, and the South Pacific in July 2020, after a months-long pause in operations due to worsening Covid-19 transmission rates.
Cruise Lines International Association (CLIA) members responded to the changing conditions with enhanced cleaning and safety protocols, some of which continue to exceed the recommendations outlined by the CDC.
Between July and December 2020, there were over 200 sailings. The success of these sailing validates the effectiveness of the newly enhanced protocols in keeping passengers, crew members, and destination communities safe.
As the cruise industry now prepares to resume service throughout the United States, Canada, Mexico and the Caribbean in 2021, TraceSafe could be poised for a significant uptick in sales. Wearable tracing technology remains a CDC best practice recommendation for cruise lines to reduce the spread of Covid-19.
TraceSafe Inc. is a global leader in real-time location management and contact tracing solutions. The company’s patented technology utilizes advanced low-power Bluetooth beacons and enterprise cloud management, while high-level encryption ensures user privacy.
TraceSafe’s patented contact tracing bracelet has already been deployed in mission-critical quarantine applications worldwide in partnership with leading governments. In addition to their government work, TraceSafe is developing leading-edge solutions for Enterprise, Healthcare, Education, Government, and large-scale venue management.
Disclaimer: The company described in this article is a customer of NAI Interactive Ltd. This material is for informational purposes only and is not intended as a recommendation or offer or solicitation for the purchase or sale of any securities or financial instruments, or for transactions involving any financial instrument or trading strategy.