OneSoft Solutions Inc. (OSS) Earnings Call Transcript & Summary

This is Robert Kraft, and I'm your host on SNN Network. And joining me right now is Brandon Taylor. He is the President and COO of OneSoft Solutions. It's a publicly traded company. I got 2 symbols for you, OSS on the TSX Venture and OSSIF on the OTCQB. Brandon, good to see. How you doing?

You too. Good. Thanks, Robert. Thanks for having us.

It's great to have you on. So we last had -- it was -- we had Dwayne on last time on the show back in May this year. So I'd love to get an update, what's been going on at OneSoft since then?

All right. Well, thanks. Lots of activity. As you can imagine, it's a SaaS software company in an industry that's oil and gas. COVID created quite a bit of noise around business continuity. The Pipeline and Hazardous Safety Materials Agency (sic) [ Pipeline and Hazardous Materials Safety Administration ] within our DOT has also come out with some new regulations. They've been -- were supposed to be released in July. At some point, those will come that are kind of driving our clients kind of more into data management. So after COVID hit, we had -- a lot of our customers and prospects got sent home. This is in an industry that's used to working remotely. So they scrambled to find computers and laptops and monitors, except for our customers. Our customers -- it was just business, of course, as normal. And in fact, we got a lot of feedback from them that management initially was very concerned about productivity as most companies are when people aren't in the office. And it turns out through that period of time, they actually measured it, and they found that actually quite -- the productivity gains actually went up. In fact, we think we'll probably be just continuity as far as change, especially if you're in Houston, as an example, and you've been in that traffic, we think there's going to probably be some wax on letting people work certain days at home and different things just because of our solution. All you need is a browser. But we did go heads down pretty significantly on revamping. COVID hit. And for us, oil also took a hit, even though we don't have as much of an impact because we're in that transmission business. So that long-term contracts where they're contracted to basically transmit product, whether that's liquid or gas. But we did spend a lot of time in the solution and mapped our solution to that process -- that business process within operators and came up with some really quantifiable, both implicit and explicit, cost savings. And then we've injected that into our sales process. We've completely revamped our sales process, hired a VP of sales, subsequently, a sales manager and onboarded a full-time lead-gen person, and we've changed that process. And part of it is really pretty definable within what we do and can show explicit savings, with the objective that, over time, we'll go, let's say, for every x miles a pipe that you have, you're going to save this much money running Cognitive Integrity Management. So that was pretty dramatic. But then we didn't stop on product. I don't remember exactly how many releases we've had. But every couple of weeks, we get a new version and supply it across all of our productions around the world. So that's really exciting. The significant thing that we did is we actually and are now ingesting not just data that's coming from inline inspection with these tools that run down the pipe, in-the-ditch data that comes back in and the properties around the pipe, but we now can bring in what's called within industry direct assessment or Cathodic Protection Survey data, which is really exciting because basically now, we can overlay that data with our inline inspection data and, "Okay, we have corrosion growing at this. And is there anything happen with what they call the CIS, the CP (sic) [ CPS ] data?" So that's established a pattern. That's a private preview for now. We have operators that are actually, as we speak, ingesting that data. They go out and do excavations based on that data, help us refine our algorithms. And then that will create the pattern for us to bring in the next data set, soil, depth to cover. So really exciting things on product. We're getting a lot of feedback. I think we're up to 250 integrity engineers running the solution daily. Lots of good interaction with the customers as far as them giving us feedback and [ asking me sent in ] pretty much real time compared to what they're used to. So that's what we've been doing. We've actually been more busy. When COVID first hit, with software companies said, "Okay, what's the impact on us?" We've been working remote for like 15 years. So for us, it's like not much, right? So we just -- heads down, lots of activity. Pretty exciting. We've expanded the team a lot. We brought in account teams, new salespeople. So we're really continuing to grow and really focused on what we call CIM ARR, so Cognitive Integrity -- that annual returning component. So that's really our objective. Super hyper-focused on that. We have a lot going on in our Innovation Lab. Lots of proof of concepts with things around chemical injection, leak detection, things that can basically help us drive CIM ARR. So lots of things around that. Lots of discussions and proof of concepts. We haven't actually slowed down.

Very good. So what would you say is then the main tailwind for your company, obviously from what you can tell us, that you'll start to continue to see more and more growth?

Yes. So the main tailwind for us is adoption, and we're making it easier. So today, when people see the solution at operators, they completely get the value proposition. And this day and age is, okay, we're heads down, we're doing our job. How are we going to -- what's the uplift? That's the term, is how many people? How much effort is this going to take? So that's the other thing. We've already talked about and spent a lot of time last year. We keep evolving the tools to basically do that. We've changed that model from the perspective -- we used to make a traditional software implementation where we'd go out and say, "Okay, we'll sit with you and work through this." We know they're super busy. What we've done -- and there's been a lot of -- if you're an upstream business, there's been headcount reduction across this industry. So we know there are less people. The work is still there so it's really busy. So we've actually shifted our implementation model in that, "Hey, just give us the data, and we'll set it up for you." So we think that once we start adopting and people start seeing that, "Hey, this is a fabulous business value. It's going to save us money. And we have to limit the resources. That is really going to help us this quarter, this next quarter coming up and then going into 2021." That's what we've been really geared towards, is kind of getting ready to scale commercialization and scale in 2021. That is our objective.

Got it. And one last question, and I don't think I've actually ever asked you or Dwayne this, but what -- what's the company's market penetration thus far? And then what's the TAM as well?