Tribe Property Technologies – The exciting tech company disrupting an industry in desperate need of digitization
TRIBE PROPERTY TECHNOLOGIES INC. TSXV:TRBE
There are no two ways about it: digital services have revolutionized our lives.
Whether it’s using Uber to get a taxi to where we want to go, using Amazon to order a product we want and having it delivered to our doorstep the very next day, or using one of today’s numerous online banking services to transfer and request money in an instant….
Technology is now able to simplify almost any task so that we are free to get on with our lives.
However, when it comes to the way we live in our homes, things very much continue to lag behind.
So, given that this is an area that affects almost all of us in some way, disrupting the status quo represents an enormous opportunity.
Indeed, consider this:
Back in 1980, the number of residential communities in the US numbered approximately 36,000.
That worked out at roughly 9.6 million residents living in such areas.
At first glance, it sounds like a lot.
But when you consider that, by 2019, the number of these communities stood at over 344,000, constituting some 70 million-plus people…
It really becomes clear that this is a rapidly-growing, powerful industry integral to North American society.
Make no mistake, residential communities are on the up in both Canada and the US.
In fact, it’s estimated that almost one-third of people in these regions live in managed residential communities.
But, as mentioned, the problem is that these communities themselves are often administered and managed as if it were still the eighties.
Communication channels are limited. There is little consistency across the industry. And most things are still done on paper.
And that’s despite the fact that some $125 billion was collected and contributed by homeowners to councils and housing associations for uses like servicing, maintenance, and security in 2017 alone.
Property management has clearly been crying out for modernization and digitization for some time.
In an information age where everything we could want to know is at the end of our fingertips…
Owners, developers, and residents expect their building information to be just as accessible.
They don’t want a stack of papers destined to fall to the bottom of their mail pile. Instead, they want digitized appliance manuals, community contact information, building bylaws, and in-suite specs, and they want this information to be available instantly.
Residents want to be able to snap a photo of the miscolored kitchen backsplash and send it off with the click of a button all while watching Netflix at 2am.
More often than not, however, these sorts of privileges have largely been unavailable to date.
Little wonder, then, that Tribe Property Technologies (TSXV:TRBE) is already seeing tremendous growth as it continues to disrupt the market by providing it with the exact technology it needs.
In fact, having already seen annual revenue growth of almost 250% year-on-year, it’s clear this Canadian tech company has struck a well-spring of opportunity…
And, with numerous revenue channels firing on all cylinders, a clear plan for expansion in Canada and further afield into the US, not to mention a broad and experienced team steering the ship…
There is no doubt Tribe represents a smart addition to any investor’s portfolio.
How Tribe is revolutionizing community living for residents, landlords, and developers
As we’ve already seen, community living is growing rapidly, and the simple fact is- traditional property management techniques cannot keep up.
Indeed, these days, residents, landlords, councils, boards, and developers alike demand a better, more modern, and more connected experience.
Yet this is an industry where paper-based ‘manuals’ are still handed out to new residents and communication between developers and owners is often still bogged down in bureaucracy or outright confusion.
But with its expertise in the property industry and its state-of-the-art technology platform, Tribe is changing all that. Tribe manages buildings differently.
Tribe is delivering the digital transformation the industry has been desperate for. And, as a result, it presents a super-smart investment opportunity that has so far gone somewhat under-the-radar.
You see, the company’s tech-enabled community management platform is like nothing else that’s been known in the industry.
It solves the complex problems of residential living for all involved—from recording and centrally storing details for tradespeople building properties to enabling residents themselves to access information about the building at the swipe of a screen.
In fact, it even allows residents to book shared spaces such as a pool or BBQ area with ease and allows a building owner to check the exact color of the walls to redecorate. Almost every aspect of the building, both pre-and post-construction is stored centrally and made easily accessible.
Unlike any other offering available, Tribe has cleverly catered for all parties in the industry, making it a one-stop-shop for owners & tenants, councils & boards, property managers, landlords, developers, and tradespeople alike.
In short, Tribe educates both homeowners and the industry about the complicated intricacies of community living—particularly when it comes to regulations and compliance.
It’s how—despite still being at an early stage of its own development as a business—the company has already become both the sixth-largest condo management player and sixth-largest rental management player in Canada.
Now, having lowered its customer acquisition costs, having identified a number of further M&A targets (after successfully acquiring six already), and having recently listed publicly on the Toronto Venture Exchange…
Tribe is set to continue its growth in an even more significant way.
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A three-pronged approach to revenue generation
Aside from the fundamental fact that Tribe has timed the market perfectly by moving to disrupt what is already a growing industry…
Among the key drivers of its success to date is its three-pronged approach to revenue generation.
You see, because the community living platform Tribe has developed takes into account the needs of all those parties involved, it’s able to generate revenue from those stakeholders, too.
In the first instance, the company can generate revenue from the software and services it provides. This can come from property developers who want to use the platform, from new and existing owners, and from landlords.
Second, the company enjoys an additional stream of transactional revenue from various fees that might be incurred while using the platform, or from banking services performed through the platform or other one-off special projects where transactional charges are applied.
Finally, the company has a third source of revenue from digital services and partnerships that it can promote through its platform. For example, an insurer might wish to offer any user of the platform a discount for using its services and, in turn, Tribe generates revenue.
Indeed, it’s this third income stream that could become enormous as more and more companies realize the potential to connect with various residents, owners, and developers who all use Tribe’s platform.
And, naturally, it’s in part thanks to these multiple sources of revenue that the company has seen quarterly revenue growth of almost 250% year on year…
But by no means does Tribe plan to rest on its laurels.
Indeed, the company is targeting aggressive expansion as it looks to sweep up traditional property management companies in need of drastic modernization…
Over 13,000 opportunities to revolutionize the market
TRIBE PROPERTY TECHNOLOGIES INC. TSXV:TRBE
As it stands there are roughly 13,000 property management companies in North America alone.
And the vast majority of them are running in an outdated way, with virtually no centralized data store and mostly paper records.
It represents a huge opportunity for Tribe.
You see, Tribe’s M&A strategy is to acquire traditional property management firms at accretive multiples, streamlining them, digitizing them, and then driving new growth using the ground-breaking technology it has developed.
As pointed out before, Tribe has already made six acquisitions and has already targeted various markets elsewhere in Canada and in the US, including Seattle, Los Angeles, San Francisco, Boston, New York, and Miami.
Now, it’s just a case of executing the next stage of growth, which it has already started to do.
On a fundamental level, too, the company has an experienced leadership team, which includes CEO Joseph Nakhla (who previously served as Chief Operations Officer at TIO Networks, which was acquired by Paypal) and CFO Jim Defer (who has over 25 years in the finance and technology industries).
READ OUR EXCLUSIVE REPORT for a deep dive into how Tribe could be on track for a massive valuation re-rate as it revolutionizes property management
And that’s not to mention its super-smart board, which features experience in real estate, technology, and finance, giving it direct relationships throughout all three industries.
Plus, having only recently listed, Tribe is well-funded to enable it to continue with its aggressive M&A program.
All signs point to a strong future for a company that is already one of the fastest-growing residential community management players in Canada and is determined to provide best-in-class service to all its customers.
But still, perhaps more compelling than any other element of this story is the fact that Tribe has identified an already growing market in desperate need of modernization.
Any investor knows the startling rise a market disruptor can experience…
And with this story playing out as we write, smart investors will be keen to jump onboard with Tribe before others notice the scale of the disruption that’s already underway.
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