Nerds On Site joins the cybersecurity battle while offering mobile IT-support for the little guy

• 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:

Nerds On Site has been reporting higher demand for its services as more people work and learn from home due to the coronavirus (COVID-19) pandemic restrictions.  

For its third-quarter results ended February 28, 2021, the company’s latest reporting period, Nerds On Site reported record revenue of C$2.8 million, compared to C$2.7 million in the year-ago quarter. It also reduced its net loss to C$76,839, versus C$206,947 during the same period in 2020. Operating expenses also came down during the quarter as the company heads toward profitability. 

The company noted that it has seen increased demand from existing and new small and medium-sized enterprise clients to implement secure NERDS WorkZone setups in their team member’s homes, condos, and apartments as COVID-19 circumstances continue to impact both work and personal lives in all its markets. 

Its NERDS SchoolZone set-ups have also been assisting families to create secure, and distraction-free in-home classroom settings for their children’s online school sessions.

Meanwhile, the company recently announced an exclusive partnership with Staples Canada to launch Nerds On Site for Business. The new collaboration will help support small business customers with IT and cybersecurity services. Nerds On Site will support Staples small business customers across Canada with remote and on-site solutions for everything from setting up a company’s workforce to work from anywhere to managing an entire IT network.

Nerds On Site also continues to advance its insurance brokerage channel partnership in the US. 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. 

The company has also 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. 

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. 

Inflection points: 

• Expand cybersecurity business 
• Deploy 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
• Announce details of planned joint-offering with major tech partner

What the boss says:

“We have been building NERD from the ground-up with our franchise model delivering consistent and stable revenues in each quarter,” said CEO Charlie Regan in a recent statement.

“Our strategy of providing IT solutions to small business owners and residential clients has proven so successful that we recently signed a country-wide partnership with Staples Canada. We believe that 2021 is a breakthrough year for the company as we are well on the path towards profitability in the second half of the year.”

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

Story by ProactiveInvestors