Q: With small companies I often check the quality of their web portal. ZOOMD doesn't impress me; some links don't work. They don't list a phone number in the contacts. Their address appears to be a law firm. Is the Toronto address just a front? I don't mind if the company is based in Israel but they shouldn't hide it. Ex-ceo has lots of shares to sell even if half is via controlled sale.
They had some big organizations as customers but i wonder how sticky these contracts are. And if not, why is that? Do you have any insights into it?
They had some big organizations as customers but i wonder how sticky these contracts are. And if not, why is that? Do you have any insights into it?
5i Research Answer:
ZOMD operates primarily out of Israel, but the Toronto address is standard for Canadian-listed tech firms. Links being broken on the site can indicate a red flag in terms of investor confidence. The former CEO, Ofer Eitan, set up an automatic share sale plan for up to 2 million shares to be sold by December 31, 2025 (starting on May 5, 2025). It has mentioned some big organizations as clients, and it has a customer retention rate of about 90% or more. It is a small name ($113M market cap) and free cash flows are strong and growing. It seems OK, but we would consider it to be on the riskier side given its small size and volatile growth rates.