Salesforce Senior VP Leaves for Cannabis Opportunity

06/21/2016 9:18 am EST

Focus: CANNABIS INVESTMENTS

Michael Berger

President & Founder, Technical420.com

Michael Berger, Associate Editor of MoneyShow.com, a leading expert on the cannabis sector, highlights a leading cannabis company that is attracting talent from several Fortune 500 companies as it continues to execute on growth initiatives, generate revenue, and attract new users.  

The legal cannabis industry is the fastest growing industry in the world and cannabis businesses continue to attract talented new employees.

We believe that the success of any business starts with its management team and this is especially true in the legal cannabis industry.

Salesforce Senior VP Enters Cannabis Industry

Yesterday, MassRoots (MSRT) - the Facebook of the cannabis industry - further strengthened its management team after it appointed Lance Galey as its new Chief Technology Officer. As the company’s CTO, Galey will focus on improving MassRoots’ engineering processes and software platform.

Prior to joining MassRoots, Galey led the development of core infrastructure and Software-as-a-Service (SaaS) applications for Salesforce.com (CRM).

This is a significant addition as Galey brings a lot of experience to MassRoots as he also worked in similar capacities for companies such as Disney (DIS) and Amazon (AMZN).

Network Continues to Grow

MassRoots helps its members locate specific strains and has more than 900,000 users. Although this number is lower than expected, more than 300,000 of these members engage every day, which is very impressive.

The company is able to aggregate data from its users which provides valuable information with regard to consumer trends and preferences. This information provides MassRoots with a competitive advantage and serves as a barrier to entry to other companies.

MassRoots also has over 7,000 cannabis businesses on its business-to-business platform, with 2,500 actively posting every day.

Product Pipeline Creates Catalysts

MassRoots has provided investors with a product pipeline calendar in its investor presentation and highlighted the upcoming initiatives:

  • Dispensary Finder and Menu: This update will be launched in July and it will direct consumers to the best dispensaries to purchase legal cannabis
  • Product Pages and Reviews: Expected to be released in early August and will further improve engagement within its rapidly growing community.
  • Sponsored Posts 2.0: Expected in late August, MassRoots will launch improved customer targeting opportunities for advertisers on its platform
  • Enhanced Profiles: This initiative is focused on improving user experience through enhancing their profile. The updated profile will display the most relevant information as well as that which drives user engagement and makes the user want to return to the platform

In late 2016/early 2016 MassRoots will release a data sales application that helps dispensaries, growers and new businesses operate more efficiently. The company’s business dashboard will feature its proprietary data in a format that is easy to access and understand.

Also coming later this year is a premium subscription service, which will cost approximately $5 to $10 per month. The subscription will help consumers find their favorite products at the best prices.

Revenue Continues to Grow

Since inception, MassRoots has generated over $300,000 in revenue and it currently has $320,000 in deferred revenue. The deferred revenue is associated with forward advertising contracts and will be accounted for when realized.

A majority of MassRoots’ revenue has been derived from cannabis businesses in Colorado and California, which is a trend we expect to see change during 2017 as marijuana programs continue to develop across the country.

Attracting Best-in-Breed Talent

Although the addition of Lance Galey is exciting, it is nothing new and reflects a trend that we expect to not only continue but to accelerate in the near future.

During the last year, MassRoots has been able to attract talent from some of the biggest and fastest growing technology companies such as Microsoft, Skype, Target and Blizzard Entertainment.

MassRoots also has an impressive Board of Advisors that includes people such as James Veraldi, Head of Strategy and Partnerships from Snapchat, and Anthony Nystrom, Principal of Artificial Intelligence at Mashable.

Attractive Valuation

MSRT plunged more than 40% after the Nasdaq rejected its listing application and we recommended buying shares on this weakness.

There was no basis behind the Nasdaq’s rejection and MSRT has rallied more than 50% off of its May lows. MSRT is trading at $0.80 and we see significant upside to current levels. Although we find the shares attractive at current levels, MSRT tends to find support at $0.75 and $0.70 and we would continue to add to our position when its shares breach this level.

MassRoots is the Cannabis Investing Event Sponsor at MoneyShow San Francisco. Click here to register for this free conference!

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