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Big Sofa wins two 'significant' new contracts
AIM-listed Big Sofa, an international video analytics provider to consumer brands and market research agencies, has won two "significant" contracts, one with US retailer Target and the other with Zurich North America, the US company of the global insurance group.
Both customers have retained Big Sofa on a monthly subscription model, with initial terms of six and twelve months respectively, starting on 1 January. The subscriptions are expected to lead to "material" revenue contributions this year.
Big Sofa pointed out that an element of its strategy is to convert key client relationships into long-term, recurring revenue generating customers. As such, the board reckons these subscription-based contract wins are further evidence of the validation of this strategy.
Target will leverage Big Sofa's technology and expertise on a continuous basis to analyse existing and new video content to generate detailed insight into in-store consumer behaviour and preference. Meanwhile, Zurich will build on its Big Sofa subscription to data-mine and analyse both existing and new customer video content to facilitate its drive to put customers at the heart of its business strategy.
Chief executive Simon Lidington said: "Big Sofa's status as the disruptive video analytics technology of choice for clients of Zurich's and Target's scale continues to validate our belief that video will transform the consumer insight market as the preferred medium for capturing real consumer behaviour.
"An increasing number of the largest companies in the world are choosing Big Sofa's technology for its unrivalled ability to deliver fast, high quality and cost-effective insight and consumer knowledge and these contract wins demonstrate our ability to convert relationships with these large, global organisations into high quality recurring revenue streams."
At 0940 GMT, the shares were up 4.2% to 13.68p.