Can microcap companies deliver large-cap style returns? The team at
SaverOne technology has the power to do that. Its flagship In-Cabin Driver Distraction Prevention Solution (DDPS), branded as the SaverOne system, can identify when a cell phone is in the vicinity of the driver's seat and, with the addition of the SaverOne App, block access to distracting apps and social media channels without disrupting necessary apps like navigation, emergency signals, and hands-free phone calls. SaverOne's DDPS was designed with other compelling features.
Foremost, the system automatically engages when a phone (with the app installed) is near the driver, not the passengers. That difference is a significant advantage over potential competing products. And by the SaverOne solution only focusing on limiting phone functionality to cell phone signals around the driver's seat and no one else's, its differentiation could make it the best-in-class option for consumer vehicles.
AI-Empowered Functionality
From a functionality perspective, SVRE's solution uses sensors and AI algorithms to identify and detect the position of a mobile phone in a vehicle. That find is made easy by its installation partners placing a concealed "Phone Location Unit" in the vehicle, typically under the dashboard. That sensor can determine a phone's location based on the relative strength of the phone's RF signal. Still, a driver entering the vehicle with a cell phone needs to have the SaverOne app installed and open. If the app is not enabled, an alarm will be triggered that can only be silenced by removing the phone from the driver's area or downloading and activating the mobile app if the phone is to remain in the vicinity of the driver. From there, things get super easy.
After the app is installed on a driver's phone and activated, the system blocks all applications while the vehicle moves except calls, navigation, music apps, and other hands-free or non-distracting apps. A corporate fleet manager could elect to "safelist" specific apps (for example, a delivery company could add its internal delivery app to the approved list). For private vehicles, the list of allowed apps can be modified by a third party, such as a parent or an insurance company that might offer incentives for compliance. Its product and technology put SVRE in an excellent market at the right time.
Remember, billions of cars are on the roads daily. And with antonymous driving still years away, that puts billions of drivers behind the wheel, which allows SaverOne, with its in-market product, to focus strategic efforts on exploiting a massive targeted opportunity. That mission is in progress. SaverOne is already deploying its flagship product to the commercial market, specifically targeting revenue generation from those companies putting commercial vehicles, buses, and employee-driven vehicles on the road. That effort is to help those clients mitigate their liability associated with distracted driving. And since SaverOne's launch in 2019, plenty are signing up.
SaverOne Order Book Continues To Increase
The company announced securing roughly 4,300 systems ordered, with about 3,000 of them already installed. SaverOne also launched a second generation of the distracted driver protection solution in Q4/2022 that targets earning business from the larger global auto market. In 2023, it scored another milestone with its first international sales. Those sales are leading the drive to expedite best practice distribution, installation, and marketing strategies to further penetrate global markets. Those efficiencies are needed sooner than later to serve a current ramp in demand.
Last month, SaverOne reported initial orders of 90 new installations of its in-cabin Driver Distraction Prevention Solution (DDPS), primarily on school buses. While the number is small, after evaluating the value of keeping drivers focused on the road, the company believes the initial placement can lead to more significant orders from that client and potential clients that provide similar services. Groundwork completed supports meeting that potential. Also in October, SaverOne signed a distribution agreement with
By all measures, SVRE is timely to its opportunity. Despite safety improvements added to vehicles in the
But one stat does stand out: smartphone ownership has surged from roughly 56% of the American population owning one to approximately 85% as of 2022. Excluding the very young and the oldest generations from this calculation leads to a revised estimate showing that nearly ALL drivers in the
The Issue Of Driver Distraction Opens A Massive Market
Still, the issue isn't entirely under the radar. Progress toward making cars safer and more distraction-free includes the advent of hands-free technology to reduce the use of the handset. However, while that alleviates issues related to in-car conversation, it does little to curb the explosive use of social media, where texting is the primary tool to communicate a message. While companies like Apple and Android offer means to mitigate distraction for drivers in moving vehicles, they typically require opting-in, which for many drivers, especially younger ones, is a deal breaker, leaving significant phone use while operating a vehicle in its wake. Only when legislation makes the penalties of getting caught using the phone keypad when driving more costly, expecting a decrease in occurrence is unlikely.
That doesn't mean companies like SaverOne won't continue trying to limit the practice despite a period of status quo. In fact, SVRE is already advancing an ambitious initiative from developing an OEM solution that could be integrated into a new vehicle and then offered to the purchaser. Some manufacturers are already on board.
So far, SaverOne has announced a deal with at least one OEM partnership, major truck manufacturer
SaverOne Growth Curve Is Steepening
In the first half of 2023, SVRE reported a significant increase in year-over-year revenues, reaching roughly
Those increases show that this microcap company is earning sales traction. While the numbers are not yet in the millions, that milestone is a target in play for 2024 based on the pace of deals made and interest from large fleet vehicle operators. As of
Supporting the proposition that SVRE can weather potential dilutive financing is an announced deal with Electra Afikim, an Israeli-based public transportation company expected to install the SaverOne System in its bus fleet, currently at 1,200 vehicles. That deal is SVRE's largest to date. But it's far from the only contributing value driver. The company recently announced an expansion of its pilot projects outside of
SVRE entered into a memorandum of understanding with leading medium/heavy truck manufacturer
Notably, at an estimated retail price between
SaverOne Turing Ambition Into Revenues
And to turn ambition into sales, SVRE has a management team proven to deliver shareholder value. The CEO has held leadership roles in several companies, the COO and Co-founder spent over two decades at Motorola, last serving as Senior Manager of Program Management and Business Operations, and its Vice President of R&D served as the VP of R&D for
That team should be able to quickly leverage SaverOne intrinsic strengths to capitalize on revenue-generating opportunities from a market size of billions, which can yield as many dollars over the long-term mission SVRE has embarked on. The critical thing to remember when appraising SVRE on its merits is that it targets a problem that will likely never go away. And those trying to target the parts instead of the whole may find their competitive standing shrinking as those companies fully dedicated to solving the driving distraction quagmire, like SaverOne, earn more significant market share and become substantially more robust to leverage leadership positions.
So far, all signs point toward SaverOne growing into a leadership role. And if it continues to execute its plan to become a recognized global provider in its space, the impressive growth seen since 2019 may be the precursor to more of the same. Actually, more likely than not, performance will be better.
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