BioHiTech Global (OTC:BHTG), one of my favorite (clean) tech startups, is out with an update on its food digester (its core product at this point). Specifically BioHiTech has updated market participants that it has launched a mobile app for helping access its analytics platform - BioHiTech Cirrus. Those that have been following the BioHiTech story so far into my coverage of the name know that the analytics platform is an ancillary product to the core digester.
Is this launch meaningful? You bet. Let's breakout why.
First, any time a startup expands its product portfolio that's something I would consider "meaningful". So, that matters. Second, it becomes doubly meaningful if that product portfolio expansion is value-prop enhancing of the core-product; in this case BioHiTech's new product certainly is. Third, considering that BioHiTech's initial target market - at least this is how it's appearing in the early going - is SMB-franchise owners of regional or national restaurant franchises having mobile, in-between-location access to the productivity/analytics platform is huge.
Put another way, if I own 10 restaurants I'm likely mobile (as in "on the move") more often than not as I'm traveling from location to location in an effort to maintain top productivity at each respective location; having mobile access to the analytics platform that I'm paying for in an effort to drive business outcomes is meaningful. The BioHiTech Cirrus mobile app provides easier access to real-time data creating immediate opportunities to identify inefficiencies and improve operating margins. Again, this is bigger than most will realize.
While I don't anticipate this being a huge "selling point" or "sales closing" product within the BioHiTech model I do think that this is a mission-critical product add for the current core target market (as stated above). While the value of having multi-platform access to the analytics product won't (and maybe shouldn't just yet) be reflected in BioHiTech's market cap (it likely wouldn't regardless as the name trades very thinly on the OTCQB) my opinion is that it will be reflected in mid/long-term retention numbers and in overall expression of digester value to customers (which in itself will help with retention). For BioHiTech, retention is as key a metric right now as overall growth (as it is with most startups).
I'll keep this update note concise but I will reiterate that I continue to be impressed with the pace and scope of progress at this startup. My professional background has given me access to many a startup - especially in tech; the ones that execute and the ones that make smart product expansions this early into the game are few and far between. Keep your eyes on BioHiTech over the next few quarters. My guess is it continues to perform from a fundamental improvement standpoint.
Good luck everybody.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.