Publicly-traded SOBRsafe(TM) (NASDAQ: SOBR) is worthy of consideration. Not only because there's a valuation disconnect worth seizing but because, more importantly, its cutting-edge alcohol-detection platform is creating a pathway for SOBR to grow faster than expected. And that could close a current window of investment opportunity. Here's another interesting part of the proposition. Despite SOBR providing several updates showing accelerating penetration into several potentially lucrative markets, its share price has weakened over the past two weeks. Still, with news supporting its growth thesis, that's not necessarily bad news since it exposes a value proposition that may be too good to ignore.
And seizing on it sooner than later is warranted. That bullish sentiment is justified. SOBR has brought to market an alcohol-detection platform that can save lives by preventing accidents before they can occur. Not only that, with its SOBRcheck(TM) platform offering multiple benefits over conventional detection systems, this non-invasive and highly accurate SOBRsafe(TM) platform could become one of the most impactful advancements in combating alcohol abuse and misuse in workplaces, legal systems, and commercial enterprises.
It's quickly penetrating the oil and gas services and logistics landscape. They amplified its implementation momentum last week, announcing that oil and gas customer TerraTech Services has completed the rollout of SOBRcheck(TM) to all of its sixteen facilities across eleven states for both fleet and workplace applications. Notably, this deal with TerraTech puts SOBR in business with one of the world's largest oilfield services and logistics providers. (Note: TerraTech closed one minor facility since the previously announced count of seventeen)
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A Big Step Into A Massive Market
According to its update, with the integration of SOBRcheck(TM) into TerraTech's core safety protocols, each of its approximately 300 service center employees scan up to four times a day to continually verify alcohol-free fitness for duty. It's important to note that these are more than just snapshots in time for later review. Each scan provides data transmitted in real-time to onsite TerraTech supervisors and aggregated in SOBRsafe's proprietary reporting software for TerraTech corporate oversight. That difference is a critical distinction from other alcohol detection and screening platforms. It's also a significant advantage.
TerraTech management sounds excited about the implementations. "SOBRcheck(TM) is impressive technology, and I couldn't wait to get it installed everywhere," said
SOBR management commented as well. SOBRsafe Chief Revenue Officer
There are plenty of reasons to support the mutual excitement about the integrations.
Industry Accolades For SOBRcheck Being Better
Foremost is that it's a better and more accurate option to check and continuously monitor for alcohol use. That opinion goes beyond SOBR clients. SOBRcheck(TM) was awarded the
As important from an investor's perspective, each can be a significant value driver. While SOBRcheck(TM) is used to manage employees, patients, and people at the point of check-in, which benefits thousands of companies, SOBRsure(TM) can be a game-changer in the teen drivers market. And it's timely to the opportunity. According to the
Tapping into that market is just the tip of the revenue-generating iceberg. Statistics show that the annual cost of alcohol abuse in the
Best of all, SOBR platforms, SOBRcheck(TM) and SOBRsure(TM), are user-friendly solutions that best traditional alcohol detection methods in accuracy, convenience, and dignity. Additionally, unlike competing platforms and devices, SOBRcheck(TM) seamlessly integrates with client infrastructures, providing real-time cloud-based reports through privacy-compliant measures to assess and report alcohol consumption during testing and continuously throughout the desired measurement period.
A 21st-Century Alcohol Detection Solution With Broad Applications
In no uncertain terms, SOBRcheck(TM) differences are advantages. And as seen through the expanded adoption by current clients, they could accelerate widespread user adoption by besting the deficiencies associated with decades-old screening technologies. Remember, conventional detection methods require frequent calibration, are prone to inaccuracies, and present false positives triggered by common substances such as mouthwash or cologne. These methods also rely on intrusive detection techniques that can make the systems impractical to implement and demeaning to workers. Furthermore, most of these platforms rely on a single measurement, which can lead to false assurances of one's continued sobriety beyond that point.
SOBRsafe understands the current limitations and developed an alternative to transform how workers and employers monitor inappropriate alcohol consumption. Moreover, SOBRsafe's SOBRcheck(TM) is a better option, surpassing traditional methods in accuracy, convenience, and cost-effectiveness while offering the greater potential to prevent accidents, injuries, and fatalities from alcohol misuse. Differences are advantages.
Foremost, SOBRcheck(TM) doesn't rely on blood, saliva, or breath samples to measure for alcohol. SOBRcheck(TM) measures vapors in the skin with a simple finger touch, detecting alcohol presence with impressive 93% accuracy, surpassing the mid-80% accuracy of traditional devices. Additionally, the platform is hygienic, user-friendly and requires no special training for employees or individuals being monitored. These features make it accessible for any individual or company to use.
That's more than a valuable distinction; it also puts over 243,000 fleet companies in
The Focus Is To Curb Workplace Alcohol Use
Keep this in mind. Studies show that over 50% of workplace accidents are alcohol-related. These accidents do more than cause a company's insurance premiums to skyrocket; those directly involved and their families can suffer life-changing injuries or hardships.
That doesn't need to be the case. SOBR offers the perfect platform to support businesses in maintaining a 100% alcohol-free workplace, which can positively impact cost savings and potential catastrophe. In addition to that, SOBR technology has the potential to improve employee productivity, reduce the risk of injury or death in the workplace, and enable proactive treatment rather than termination. Realizing the power of these distinct advantages, SOBR is focused on raising awareness of the many benefits its next-generation platform can offer potential clients and their employees.
SOBRsafe CEO
Moreover, their presence at alcohol and drug-related conferences over the past year has allowed for over 10,000 introductions, which SOBR expects will significantly strengthen their sales pipeline. Given the scale of many fleets, facilities, and departments in the industries targeted by SOBRsafe, know that the value of a single customer can be significant. Once implemented, SOBR's platform can generate hundreds of thousands, if not millions, in revenues over time from these clients. Best of all, investors don't need to wait. This potential has already materialized through signed deals with major industry players.
SOBR Is Scoring Accretive Rev-Gen Deals
Among these agreements, SOBRsafe has signed deals with prominent companies such as Continental Services,
Those include strategic moves to enhance efficiency and quality while reducing fixed costs. The company recently announced a deal outsourcing manufacturing and customer support, signing deals with BGM Electronic Services and Helm, respectively. BGM will manage SOBRsafe's design, engineering, manufacturing, and testing. Another benefit of that relationship could provide SOBR introductions to BGM clients such as
Why is SOBR attracting attention? Because it's earned it. From a product and platform perspective, its technology is simply best-in-class. Unlike traditional methods that involve blood samples or forceful blowing into a tube for an extended period, SOBRcheck(TM) utilizes finger-touch technology that analyzes the natural humidity and vapor from the skin to generate a result within 10 seconds and with an accuracy of 93%. That's impressive, considering that devices like the Breathalyzer can take up to 30 seconds of forcefully blowing into a tube and then presenting results with low to mid 80% accuracy. Other traditional technologies fare no better. But remember this when appraising the SOBR value proposition. The device is only part of SOBR's overall monetization strategy; SaaS services are another value driver.
SOBR is already monetizing the value of its SaaS capabilities through signed agreements, including a deal with a Top 100 Property & Casualty insurance company to test SOBR's technology with its fleet customers. Should the results align with expectations, this respected but unnamed carrier may explore incorporating SOBRsafe technology as a safety solution and incentive for customer discounts. Although specific revenue projections were not provided, A-Rated carriers typically possess a significant customer base.
Additional contributions from these SaaS services appear likely, given recent momentum-generating deals with the companies mentioned that endorse SOBRcheck(TM) adoption.
Building Its Customer Base, Enhancing Its Sales Force, And Rolling Out SOBRsure
There's another value driver to be considered. Specifically, SOBR is making significant strides to transform its ambition into dollars. Since 2022, the company has tripled its in-house sales team, specifically recruiting specialists to serve the justice, commercial fleet, and captive insurance sectors. Moreover, SOBR has implemented a "force multiplier" distributor strategy, leveraging groups' trust-based relationships with potential alcohol detection buyers. This approach aims to expedite sales of SOBRcheck(TM) to early adopters and innovators, all at no fixed cost to SOBRsafe. By the end of the year, these efforts led to signing contracts with 14 distributors, aligning them with 83 sales professionals and a potential user base of up to 20,000 customers.
Of course, leveraging resources to expand market presence can be immediately accretive to growth. And so can marketing other products, including its SOBRsure(TM) wristband, a wearable alcohol detection and monitoring device that has earned considerable attention in the fleet, rehabilitation, and justice sectors. A clear indication of that interest was shown in an announcement in July last year, in which SOBR shared that an innovative in-home alcohol treatment provider placed a pre-order for 1,150 white-label bands. In another update, SOBR announced that a specialized, member-based rideshare company has committed to equipping its highly vetted drivers with SOBRsure(TM) upon its commercial launch. This opens up possibilities within the expansive market for school-bus drivers and related services that depend on the sobriety of its employees to keep customers, which can include millions of children, safe. And not only in
SOBR's commitment to preventing alcohol abuse in the workplace has landed them deals with businesses outside
Another deal has SOBRsafe entering into an agreement with global distributor
SOBRsafe also announced signing a software-as-a-service agreement with a prominent Native American tribe, a self-governing nation serving thousands of members in
A Valuation Disconnect Worthy Of Quick Consideration
Combining its deals made, the ones expected, the intrinsic value, and the blue sky inherent, SOBR is indeed a case study in valuation disconnects. Even single parts of the SOBR asset portfolio can justify and support higher share prices. But appraising in that way isn't a fair representation. SOBR is not a wait-and-see proposition- it's marketing its technology now, tapping into vast revenue-generating opportunities in the products and SaaS markets. And from the updates provided, the momentum behind the already appreciable growth since 2022 is strengthening.
In other words, SOBRsafe presents quite a value. So good, in fact, that it may be the closest thing to what's typically called a ground-floor investment opportunity. With technology, cash to accelerate growth, a product launch targeting a massive teen drivers market in its crosshairs, and faster-than-expected market penetration into the transportation sector, that assessment is indeed justified. And so is the presumption that the next update from SOBR could be transformative. Reaching into new opportunities, including those from a
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