Pareteum Corp (NASDAQ: TEUM) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced that it has signed a contract that represents a value of $4.5 million. Of course, this led to excitement among investors, sending the stock screaming for the top. Today, we’ll talk about the news, what we’re seeing from TEUM, and what we’ll be watching for ahead.
TEUM Announces $4.5 Million Agreement
As mentioned above, Pareteum is having an incredibly strong start to the trading session this morning after the company announced that it has entered into a $4.5 million contract. In a press release issued early this morning, the company announced that it has signed a 5-year contrat to provide its Global Cloud Services Platform (GCSP) and Connectivity for roaming, airtime, voice and SMS to a National Mobile Virtual Network Operator who provides services through Mexico.
In the release, TEUM said that it is powering its new customer to build their subscriber revenues with applications surrounding mobile money, mobile banking, e-commerce, education, healthcare, financial inclusion, and emergency management. Through the GCSP, there will be no heavy infrastructure or software investment for the JV and more of their investment will go to serving the underserved. Of course, TEUM will be paid monthly for every subscriber on the platform as well as additional payments for connectivity services. In the next 36 months, the contract is expected to drive $2.7 million in revenue and could drive $4.5 million over the next 5 years.
In a statement, Vic Bozzo, CEO at TEUM, had the following to offer:
Last year we set in motion a strategy to acquire customers in every corner of the globe by giving them one simple platform and connectivity in as many places as we could through partnerships with incumbent Mobile Network Operators and Carriers. This latest win is specifically a result of the hard work of our talented sales force and market leading technology with simple interfaces and bundle conditions.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news surrounding Pareteum proved to be overwhelmingly positive. With more contractual revenue to add to the backlog, excited investors are pushing the stock for the top. Currently (9:32), TEUM is trading at $2.93 per share after a gain of $0.13 per share or 4.64% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on TEUM. In particular, we’re interested in following the continued growth of the company’s contractual revenue backlog as recent additions have been impressive to say the least. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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