Cloudcommerce Inc (OTCMKTS:CLWD) Stock Surges After Announcing a New Client
The advertising business might have taken a hit due to businesses effectively shutting down and not spending on promotions, but things have started improving on that front as the economy opens up. Hence one can expect the wind to be back on the sails of the digital advertising space.
New Client
One of the notable companies in this sector is Cloudcommerce Inc (OTCMKTS:CLWD), and on Thursday, its stock rose significantly on the back of an important partnership. The company is best known for having developed SWARM, a proprietary marketing solution that allows brands to analyze a wide range of data and then decide on their marketing plan.
The company uses market research, data analytics, artificial intelligence, and behavioral science in order to crack the code. On Thursday, the CloudCommerce stock rallied by as much as 23% after the company announced that it had signed a new client. The client in question is Desert Mountain, which has roped in CloudCommerce in order to boost its club membership and also home sales.
As per the terms of the agreement, CloudCommerce is going to take a multipurpose approach to the project and create a laser focussed digital marketing campaign. Desert Mountain is looking to establish a marketing strategy that is entirely rooted in hard data, and it believes that CloudCommerce is the company that best suits its purposes.
The financial details of the deal have not been revealed by either company, but it created enough buzz in the market among investors and stock soared. It will be interesting to see if the CloudCommerce stock can end the week further gains or not. The company is going to SWARM to drive the data analytics component of the project.
Expects 2020 Full Year Revenue To Exceed $14 Million
CloudCommerce also made a crucial announcement earlier this month, and that must have come as a boost for investors as well. The company announced that it expects its revenues for the full year 2020 to be more than $14 million and the net income to surpass $1 million for the same period.
The company derived the confidence to provide a projection on the basis of the guaranteed revenues from clients under contract and also because of the addition of new clients in recent months. In addition to that, the company also announced that rising revenues would help it in generating more value for its investors as it reduces its need to raise cash through share dilution.
Andrew Van Noy, the Chief Executive Officer of the company, stated that the CloudCommerce employees have been able to perform admirably despite the challenges posed by the coronavirus pandemic. The announcement must have come as a major boost for those who are already bullish on the company. However, it could also prove to be a compelling argument for potential investors.
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