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What they do: Technology (software) develops and distributes digital visualization software for the renovation and new home construction sectors in the United States, Canada, and internationally.
Potential rewards: I have known RenoWorks for a while now and have been cheering for them. This is a tiny <$7M CAD market cap company specializing in digital visualization software for the remodeling and new home construction industry. Their solutions enable homeowners, contractors, and manufacturers to create realistic 2D and 3D renderings of home exteriors, facilitating design decisions and project planning. After years of developing and testing RenoWorks shareholders were hoping for a break-out year in 2024 as back in January they partnered with a much larger company in EagleView who works with contractors and would be able to use (and market) RenoWorks product. So far this has been working (slowly) as RenoWorks hasn’t reported full year 2024 earnings yet but their YTD (9-month) numbers are $5.2M revenue (9% increase), recurring revenue $1.9M (20% increase), and a net loss of $2,333 (and no that’s not $2.3M but only two thousand bucks of losses). Slow but steady improvement.
Potential risks: RenoWorks gives microcap investors a lot to like in 2025. A little bit of growth (especially recurring) and hopefully an inflection point to profitability in 2025. I do have some concerns that this product always seems to excite investors, share price goes up, and then share price goes down as people get tired of waiting for that explosive quarter that never comes. This company just moves slow, and without EagleView (if that partnership ever fell apart) then it would be slowly down.
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