Just months after signing the first paying client for their conversational AI platform, artificial intelligence company Crowd Media (ASX: CM8) is already flagging their next product launch, this time for the gaming and entertainment industry.
Establishing a roadmap in 2019 to pivot their artificial intelligence into conversational commerce, it was somewhat of a surprise to see the first client signed was in the field of telehealth when Crowd confirmed a 12-month licencing agreement with PangeaMed. Revenues generated from that deal have contributed to Crowd reporting its second consecutive cash flow positive quarter with $0.02m for the quarter ended 31 March 2022.
“Crowd continues to build extraordinary technology and optimise its existing business, pushing new tech commercialization ahead of schedule and “soft-launching” products to scale the system sensibly,” said Crowd Media CEO, Idan Schmorak.
“The demand and willingness that is coming from third parties and potential customers to participate in commercializing the Talking Head technology strengthens our core vision and confirms that we are on the right track.
“We keep rightsizing our teams to support commercialization, while maintaining a responsible cash flow regime, allowing us to be operating cash flow positive for a second quarter in a row, an exceptional situation for a company in a growth stage.”
Unlike most companies in the conversational commerce space, Crowd Media also operates a mobile subscription business which has previously been scaled down to reduce operating expenses. Since being appointed CEO in September 2021 however, Schmorak identified an opportunity to reignite the division which is now paying handsome returns to be driving profits that are funding Crowd’s development of their Talking Head platform.
Recently introduced optimisation measures implemented to the Subscription division’s personnel, sales and marketing teams resulted in a 3% increase in average revenue per customer. The division has in fact regained momentum so quickly that Crowd is in the process of establishing an in-house media buying team that will open new revenue streams as well as improve the division’s operating margins.
On top of the rising profits being generated, Schmorak has now commenced a collaborative project between the Subscription division and the Talking Head developers which will work together on a mobile product that monetises Crowd’s conversational AI. The project is specifically targeting the gaming and entertainment industry with a product launch expected by June 2022. Investors got a glimpse of what this might look like in a previous development update released by Crowd where gamers could converse with a NPC (non playing character) and receive their daily horoscope reading.
Other projects that utilise Crowd’s conversational AI which provides computer-generated responses to real questions from humans is their highly anticipated celebrity NFT collection being developed in collaboration with NFT specialists Impssbl.
Jarryd is an experienced Investment Adviser at Emerald Financial Group
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