- Provides cybersecurity and IT-support for small and medium-sized enterprises as well as corporate and residential users
- Operates in 10 Canadian cities and in three US states
- Generates about $8 million to $10 million in revenue annually
What Nerds On Site does:
Nerds On Site Inc (CSE:NERD) (OTCMKTS:NOSUF) provides cybersecurity and mobile IT-support services for small and medium-sized enterprises (SMEs) as well as for corporate and residential users.
The Canadian company offers more than a dozen services, including network installation and support, PC setup, tailored software services, website design and hosting, and wireless networking. It also runs round-the-clock network security and device monitoring, on-site and remote support, and IT-asset management, among other services.
Nerds On Site, which operates in 10 cities across Canada and three US states - Florida, Nevada and North Carolina - has teams of carefully chosen technology specialists ready to visit homes or workplaces to diagnose problems on the spot and offer ongoing managed solutions to prevent problems occurring in the first place.
Nerds On Site each year services more than 12,000 clients, including a large number of Canadian Tire locations. It doesn’t really have a direct competitor - Best Buy Co Inc's (NYSE:BBY) Geek Squad provides similar services, but those are targeted more towards the installation of video and audio systems rather than onsite IT solutions.
When it comes to software, Nerds On Site also has the ability to develop unique, state-of-the-art solutions through third-party developers to handle services such as electronic-records processing and security applications. The company has also been named an Apple Inc (NASDAQ:APPL) mobility-solutions partner to SMEs that use iPads and iPhones
The company uses a revenue-sharing model with its workers who are dubbed EntrepreNERDS, or eNerds. Simply put, they are independent contractors who share between 37% to 50% in revenue from each contract they sign.
Its sharing model on average generates about $8 million to $10 million in revenue and has garnered about $160 million in total revenue since its inception in 1996. Management owns 50% of the company’s shares.
Each eNerd is certified by industry leaders such as Alpabet Inc's (NASDAQ:GOOG) Google, Microsoft Corporation (NASDAQ:MSFT), Dell Technologies Inc (NYSE:DVMT), Amazon.com Inc (NASDAQ:AMZN) and Cisco Systems Inc (NASDAQ:CSCO) to ensure that they can provide clients with IT solutions for any system interface.
How is it doing:
In an update on August 13, 2020, Nerds On Site revealed that it is seeing "new opportunities" and a steady increase in business due to the coronavirus (COVID-19) pandemic, mainly related to remote workplaces and schooling as well as an increase in cybercrime
Nerds said it continues to design and implement at-home/remote "WorkZones", adhering to coronavirus work safety standards. It is also advancing remote "SchoolZones" inside homes - a three-level offering with hardware protected with the company's AdamONE security offering.
The group noted that it can also provide a first stage cybercrime assessment to gauge and recommend proper protocol which may include deploying its AdamONE 'Don't talk to Strangers' offering.
Nerds also said it continues to advance its insurance brokerage channel partnership in the USA. The pilot program has resulted in a further five clients over the last month. Based on the success so far, the work is being expanded to six additional states.
2019 proved to be a successful year for Nerds as it expanded operations and staff in Canada and the US to position itself for stronger growth.
Last year the company penetrated the Nevada and North Carolina markets, added 20 new Nerds On Site teams, and won 70 new retail operations in Canada now using its proprietary TimeWellScheduled software. It also grew full-year gross revenue year-over-year by 20%.
But the company’s biggest move in last 2019 was a well-timed launch of its CyberSecurity Incident Response program for SMEs -- which comprise some 70% of cyberattacks.
The program, designed to win over new clients whose systems have been compromised, can minimize damage, reduce recovery time, and lessen related expenses by getting networks back on track and protected going forward. The company proudly points out that its incident response team managed last year to thwart a $600,000 ransomware attack.
To spread the word about its cybercrime-fighting operations, the company has started a channel marketing pilot partnership with select chambers of commerce in Florida, North Carolina and Ontario to educate hundreds of clients on the cybersecurity risk they face and what Nerds On Site can do to help.
And to strengthen its cybersecurity capabilities it has invested in AdamNetworks, a Canadian firm established by Nerds On Site Co-Founder David Redekop, which has developed a technology based on the industry’s ZEROTRUST standard called AdamONE that is a critical element in Nerds On Site’s endpoint security offering. It prevents any information from leaving a client’s network by giving the appearance that its systems are unplugged and inaccessible.
Nerds On Site has provided about C$1 million in the form of debt over the last four years to establish AdamNetworks. The company postponed interest payments as its technology was under development in exchange for a 20% royalty payable to Nerds. AdamNetworks has now begun debt repayments with interest of 8% annually.
The momentum in revenue growth the company began in 2019 has carried over in 2020 -- stemming in part from the telecommuting revolution spurred by the coronavirus (COVID-19) pandemic and shutdown. More people working from home means more cyberattacks as criminals try to exploit those home-to-office server connections -- and that translates into greater demand for cybercrime-fighting services.
The company’s strategic focus on the cybersecurity market is paying off in the new year, as gross revenue between June 2019 and February 2020 increased 22%.
Meanwhile, NOS Holdings Ltd, an entity owned by Nerds On Site founders John Harbarenko, David Redekop and Charles Regan, recently purchased 400,000 company shares. And the company has launched investor information pages on LinkedIn and Facebook so management can communicate directly with investors who also can chat with each other.
- Continued coronavirus pandemic boost benefits
- Expand cybersecurity business
- Move into the 10 fastest-growing US cities with 10 eNerds in each
- Deploy an area developer franchise model in the US in which geographic franchises can be purchased
- Continue expansion in Canada with a focus on more corporate relationships
What the boss says:
In the August 13 update, Nerds On Site CEO Charlie Regan said: "As a result of the pandemic, the requirements for many companies to establish and operate remote workplaces has increased business volume for NERDS."
"As it relates to protecting clients from cybercrime, a key business unit for NERDS, there has been a substantial increase in cybercriminal incidents, which has also resulted in increased business volume," he added.
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