By: Javier Hasse
In an article/video recently published on Marketfy, SecretCaps Founder Tom Shaughnessy interviews Smtp Inc (NASDAQ: SMTP)’s CEO Jon Strimling and CFO Ed Lawton, who provide some color on the company’s growth strategy.Why Interview Management?
SMTP’s market cap barely surpasses $38 million and, according to Shaughnessy, “A MicroCap's management team is the most important characteristic of an investment in this realm.” The expert believes SMTP’s management team is strong and capable, and has executed remarkably, “integrating three companies seamlessly into one with strong results already feeding growth.”
Related Link: Shaughnessy Micro-Cap SMTP Has 125% Upside PotentialThe Interview
Question: SMTP recently acquired SharpSpring and GraphicMail and is already seeing the results of the purchases. So, how did the company locate these two takeover candidates?
Answer: In evaluating acquisitions, the company looked into more than 180 firms in the email and marketing automation industries. They finally decided for the two they acquired based on three criteria: the quality of the companies, the quality of the teams and "how all the pieces fit together in this particular case."
Q: Are these acquisitions currently topping the management’s expectations?
A: The acquisitions are topping expectations both in financial terms and in terms of the strategic value.
Q: What are the top synergies from these acquisitions?
A: The acquisitions allow SMTP to “fulfill the needs of the majority of email senders, who demand integrated solutions,” and transform it from a niche player to one that can address 95 percent of the market. On the other hand, SMTP provided SharpSpring and GraphicMail with “tremendous scalability,” which they did not count with before being purchased.
Q: Does the international client base GraphicMail had allow SMTP to upsell SharpSpring?
A: The company is definitely seeing some traction here.
Q: What are the features driving SharpSpring’s growth and high client retention?
A: Three things are driving the success of this product: (1) its flexible architecture, (2) the scope of the solution and (3) the usability of the platform.
Check out the full interview in the video here: