Velpic CEO Russell Francis on Snaring a Share of a $4 Billion Industry Growing at 25% Per Annum

In The Chair

In this show we deconstruct ASX-listed Velpic with CEO Russell Francis. While only 18 months old as a company Velpic has been growing rapidly, and its core product is now the tool underpinning management of staff training for a number of Australia’s largest companies. We cover the operating sector drivers, revenue generation, target company valuation and much more. Enjoy!

• Listen to it on iTunes.
• Stream by clicking here.
• Download as an mp3 by right-clicking here and choosing "save as".

---

Links From the Episode

• Velpic

Show Notes

• 1:15 – Workplace training a $130B industry globally
• 1:21 – By 2018 $7.8B of that will be spent on the technology to provide online training
• 1:29 – Industry growth 25% per annum
• 4:10 – High demand for better trained staff driving growth in product
• 5:36 – Video based training reduces the time to train by up to 70%
• 6:40 – Traditional LMS industry and companies
• 7:05 – Capabilities of a traditional LMS versus Velpic
• 7:50 – Globally unique
• 9:07 – Barriers to entry
• 10:24 – Customer pillars targeted
• 12:12 – Example of Velpic customer outcome from system implementation
• 13:11 – Velpic product pricing including pricing power versus the competition
• 14:39 - Recurring revenue expectations for Velpic
• 17:04 – Margins and investment for growth
• 17:50 – “Turning up the wick”
• 18:50 – Progress metrics to look at
• 21:00 – Thoughts on M&A
• 24:18 – Organic growth is primary focus for foreseeable future
• 27:23 – Company management structure
• 30:22 – Key company risks
• 32:00 – Company funding position for current business structure
• 32:40 – One, three and five year goals for Velpic
• 34:35 – Billion dollar valuation in five years
• 35:46 - $50M revenue per annum in five years
• 37:00 – Three-year ‘number of lessons delivered’ target

Companies & Organisations Mentioned

• Oracle
• SAP
• Microsoft
• Alcoa
• BGC
• Atlassian
• Xero
• Surfboard Industry Association of Australia
• Dash Digital

People Mentioned

• Leanne Graham – Chairperson
• Pat Connell – CEO of Dash Digital
• Glen Moora – Co-Founder, National Head of Sales
• Harry Korelis – Board member from original shell
• Dan Rohr – CFO
• Justin Panté – CTO

---

Direct and Indirect Investments Neither In The Chair as an entity nor its employees/contributors have any economic interest, direct or indirect, in Velpic (VPC.AX).

---

Disclaimer In The Chair is not providing investment advice, share investment recommendations or attempting to convey an investment view, either positive, negative or neutral, on any of the companies interviewed. In reviewing companies listed on the Australian Stock Exchange (ASX) as potential investments, investors should rely on their own due diligence in arriving at a decision to buy, sell or do nothing with regards to a potential investment in an ASX-listed company. In The Chair exists for informational purposes only, and a decision to interview or not to interview a company should not be taken as an endorsement, or non-endorsement, of that company’s shares as a potential investment. Neither In The Chair nor its interviewers are Australian Financial Services Licensees, nor purports to act in a capacity as such. In choosing to listen to an interview on In The Chair the listener acknowledges and agrees to all of the above.