Leafbuyer Technologies Inc (OTCMKTS:LBUY) is another beaten-down cannabis name that is making a comeback. After a steady decline from $3 last year, LBUY finally showed some life while the Dow Jones plummeted 660 points. This is indeed a positive sign and one which signals that LBUY is set to run.
For those that are not familiar with Leafbuyer, he is a brief background. Leafbuyer is one of the most comprehensive online sources for cannabis deals and information. Leafbuyer works alongside cannabis businesses to showcase their unique products and build a network of loyal patrons. The Company’s online network reaches millions of marijuana consumers every month. Leafbuyer is the official cannabis deals platform of LA Weekly, Voice Media Group, Dope Media, Grasscity, and The Stranger.
Point of Sale Integration
Leafbuyer is working to expand its POS capability and plans to announce more in the near future as the company expands its national footprint. Last month, the company announced its integration with five industry-leading Point of Sale (POS) systems, including GreenBits, Adilas, Cova, MMJ Menu, and MJ Freeway.
POS systems help dispensaries in every legal market track cannabis products from seed to sale and then conduct a transaction. At any point, the dispensary’s POS system knows the total inventory for every product in the store. By integrating with these technologies, Leafbuyer is not only able to display real-time, accurate information to consumers looking to pre-order online, but will soon be able to pull purchase information. COO Mark Breen said:
“Integration takes our consumers’ online ordering experience to the next level. Consumers need to know immediately if, for example, their favorite edible is in stock before they pre-order. If we didn’t integrate with POS systems, we would have to rely on people to update the inventory, which leads to human error. Now, it’s automated.”
Record Quarterly Numbers
Last quarter, Leafbuyer saw sales rise 67%. COO Mark Breen said:
“Our record growth this quarter is a function of our bolstered national expansion and the higher dollar value we are receiving for our bundled packages. We are seeing a high demand for our loyalty services as well as our customer acquisition platform. We expect to see a significant increase in revenue coming from loyalty and order ahead products from our cannabis dispensary customers.”
Back in November, Leafbuyer closed on its acquisition of Greenlight, the leading loyalty rewards and order ahead software in the cannabis industry. The Greenlight app is designed to give businesses a competitive edge and to better retain their customers. Greenlight’s mission is to help businesses serve more customers, grow their revenue, and increase patient retention.
The Greenlight mobile application provides cannabis consumers real-time ordering and loyalty rewards through a native progressive web application (PWA) that integrates with the local dispensary’s point of sale system. The acquisition more than doubled Leafbuyer’s client base in California.
The acquisition added additional revenue streams to leverage Leafbuyer’s market penetration. Incorporating Greenlight’s order ahead mobile platform into Leafbuyer’s bundled package offers a unique, industry-leading combination. The company projected the deal will be accretive to earnings within six months, which will impact first-quarter earnings of 2019. CEO Kurt Rossner said:
“We look forward to expanding Greenlight’s platform in California and bringing the technology to other legal cannabis markets, including Colorado. Both the consumer and client experience will improve with the addition of this user-friendly technology. With this integration, dispensaries may see higher customer retention rates since they can easily reward their consumers with convenient ordering options and loyalty benefits.”
Currently trading with a market cap of $33 million, LBUY is an exciting play among pot stocks. With Greenlight expected to boost Q1 earnings, we expect 2019 to be a big year for Leafbuyer. A return to last year’s highs would produce a gain of 320%. Considering the demand for cannabis, we wouldn’t rule it out.
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Disclosure: We have no position in LBUY and have not been compensated for this article.
Image courtesy of Cannabis Culture via Flickr