We
believe that Hostopia is a leading provider of Web services that enable
small and medium-sized businesses to establish and maintain an Internet
presence. Our customers are communication services providers, including
telecommunication carriers, cable companies, Internet service
providers, domain registrars, and Web hosting service providers. Our
customers purchase our Web services on a wholesale basis and resell
these services under their own brands to small and medium-sized
businesses. We provide our customers with the technology,
infrastructure, and support services to enable them to offer Web
services, while saving them research and development as well as capital
and operating costs typically associated with the design, development,
and delivery of Web services.
Our Web services include:
- Website hosting, creation, and maintenance applications;
- Managed email with virus and spam protection;
- Ecommerce application services; and
- Customer communication and Website promotion applications
Investment Highlights
- North American Leader In Large & Growing Market
- Exclusive Supplier to Growing Blue-chip Customer Base
- Highly Scalable Business Model with Proven Operating Leverage
- Recurring Revenues with Strong Margins & Profitable
- Proven Profitable Growth Strategy
- Experienced Management Team
Our Growth Strategy
We
expect to maintain and enhance our market position as a leading
private-label, wholesale provider of Web services to the service
provider market. Key elements of our strategy include the following:
- ACQUIRE
NEW CUSTOMERS - Target the largest service providers (in terms of
revenues, employees, and end-users serviced) in the categories of
telecommunications, cable broadband, Internet service providers,
hosting service providers, and domain name registrars, to significantly
increase our growth.
- FURTHER PENETRATE OUR CUSTOMERS'
EXISTING END-USER BASE - Leverage the brand-name strength of our
customers in order to increase the penetration rate for our Web
services with their existing end-user base. Based on our research,
including information received from our customers, we believe our
customers have a collective end-user base of approximately 5,000,000,
of which only approximately 298,000 use our services
- GROW
AVERAGE REVENUE PER END USER - Increase average revenue per end-user by
introducing new Web services that we expect will command higher prices,
both as stand-alone Web services and as part of a bundled offering
involving several Web services.
- PURSUE APPROPRIATE
BUSINESS ACQUISITIONS TO ACCELERATE GROWTH - Pursue selective
acquisitions of, or investments in, complementary services,
technologies and businesses, that we believe can accelerate the growth
in our customer base, the number of our customers' end-users, our suite
of services, and/or our revenues.
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Colin Campbell interview
June 20, 2008
8:10 AM ET
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