There are times when a product is simply well suited to address a major need in the market. That’s usually indicated when that product’s adoption upon arriving on the scene takes off rapidly, reacting to years of pent up demand for something people have always needed but never had access to.
And, if the company’s Q2 report is any indication, SmartSoles® from GTX Corp (GTXO) is just such a product. Despite only being available for about seven months, GTX Corp is rapidly adding subscribers. Something that has revenues soaring.
An Important Development for Treating Cognitive Disorders
SmartSoles is an important addition to the rapidly expanding market for wearable tech. However, unlike an iWatch or FitBit, the product isn’t just about a fun new tech toy. These GPS devices can be worn in a person’s soles like any other sort of insole and allows subscribers to track the location of whoever is wearing the shoes.
That capacity represents a crucial change for anyone with a family member suffering from Alzheimer’s disease or any other cognitive disorder. When a parent or loved one has the potential to wander off and/or get lost, finding them quickly is important for their safety.
In the past, the only recourse would be an unfocused search, frequently involving the local police or other public services. And there was no guarantee someone would be found in time to prevent them from meeting harm. With SmartSoles, a missing loved one’s whereabouts can be quickly and easily looked up. Family members or friends can go to them directly without needing to delay, search, or even notify the authorities.
It’s a development that fundamentally changes the lifestyle of people whose loved ones suffer from cognitive disorders, a population that is rapidly increasing in size.
Subscribers, Revenue Increasing Rapidly
A quick look into the numbers of this most recent earnings report would indicate that SmartSoles is getting adopted at a rate that indicates just how useful it is to its target market.
The company saw a 72% quarter-over-quarter increase in subscribers, something that yielded a 136% increase in subscriber revenue over the same period. All told, that produced a mind-boggling 275% year-over-year increase in total revenue, the sort of jump that should have GTX Corp investors jumping for joy. There’s also reason to believe, though, that this is just a sign of things to come, as CEO Patrick Bertagna emphasized that the quarter was part of broader efforts to shift from focusing on R&D to building out distribution capacity.
“Q2 2015 has been about building distribution and infrastructure for future growth,” said Bertagna in the press release that accompanied the earnings report. “As we continue our transition from an R&D company to an early revenue stage company our focus remains on building out and growing our channels of distribution through a global network of resellers, affiliates, distributors, nonprofit organizations, government agencies, manufacturer’s reps and retailers. As with all new product launches we are ramping up distribution and sales channels and pleased to report we have live units in the field and / or paying subscribers in over 20 countries. We have hired 10 regional sales reps in the US, four professional athlete brand ambassadors, signed up over 150 online affiliates, selling SmartSoles in two retail stores, have 13 international distributors and we entered into a joint venture distribution agreement in Ireland to support rapid delivery to Europe. We were also issued a vendor number for reimbursement in two US states, and have applied for other state and federal reimbursement codes, grants and private insurance reimbursement in the US and several other countries.”
This is clearly a company undergoing a transformation from developing a solid product to meeting the market need for it. Bertagna, though, was quick to remind investors that this was about more than just sales growth. SmartSoles success is tied to its ability to actually improve people’s lives.
“Seven months post our SmartSole launch we are starting to see some measurable metrics improvements,” Bertagna continued. “…but there is another metric we measure ourselves by that is also worth noting, and that is the number of phone calls, emails, and testimonials we receive from our customers, whether a mother with an autistic child who wandered off three times in one week and was safely recovered all three times, or the wife whose husband diagnosed with Alzheimer’s purchased a pair of SmartSoles and found some solace and peace of mind in knowing she is ready when the day comes that he wanders off.”
Improving Lives with a Tranformational Product
SmartSoles appears to be en route to becoming a product that’s an important part of the lives of anyone who has a loved one that might go missing for any reason. Certainly, people with cognitive disorders are among the most likely to use the product, but its application go beyond that. Parents of your children, diplomats and other people who may be at risk of kidnapping, and a variety of other people who may go missing for any reason could use SmartSoles to live a safer life.
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