ROC's Mexican bank trial successful - rollout negotiations begin
Our small cap AI tech Investment RocketBoots (ASX: ROC) has updated the market on two of its retail banking customers.
ROC sells "Vision AI" software that runs on existing in-store camera footage, helping giant retailers and banks cut theft at self-checkouts and run their stores and branches more efficiently.
The update covered two existing contracts, all up, ROC confirmed ~A$231k in total invoices issued:
(source)
The main update was the trial with a Mexican retail bank operating over 1,200 branches, which the customer has confirmed was successful.
ROC has invoiced $131k for the trial, and discussions on a broader rollout beyond the trial branches is now underway.
The scale of any wider deployment is yet to be agreed, and no rollout contract has been signed yet, but the network is over 1,200 branches, so there is some good scale in the network.
When the trial was first announced around 12 months ago, we ran a rough back-of-the-napkin calc that a full rollout could be worth ~$3.5M per year to ROC (rough numbers only, no guarantee it converts).
We covered that initial trial announcement - ROC: Second Major Bank in two weeks... this one is overseas validating international expansion potential.
Also in this update, an existing New Zealand retail bank customer has signed on for another 12 months, extending the relationship out to 4 years.
The bank first engaged with ROC back in 2019 before moving to an enterprise agreement in 2023.
(always good to see customers showing longevity as it shows the product keeps delivering value, and as a result - revenues)
What else is ROC up to?
The big one we are watching for is the ~$9.1M per year software deal ROC signed with a tier-one global retailer late last year, followed by a separate ~$3.3M activation contract in March.
We haven't had a standalone update on this one in a while now, so we could get one soon.
In the recent quarterly, ROC confirmed the first invoice was sent in June, with payment expected in August, and "first country activations" set for this quarter, that country is in North America:
(source - recent quarterly)
So we think an update could be on the way soon to cover the progress and the rollout officially beginning.
ROC also put out an investor presentation last month, here is a look at the contracts and value ROC is currently rolling out:
(see the full presentation here)
We covered the rollout plan for this deal in our most recent ROC article: ROC (AI for giant banks and retail store chains) announces another ~$3.3M revenue... on top of its $9.1M annual recurring revenue deal..
What's next for ROC?
🔄 Rolling out of the $9.1M ARR (+ $3.3M activation contract)
We want to see ROC roll out the contract today’s announcement is related to.
Here are the milestones we are tracking:
✅ SaaS agreement signed (~$9.1M ARR, 5 years)
✅ Activation Contract executed (~$3.3M)
🔄 Rollout commenced (EU deployment underway)
🔲 US deployment (scheduled Q1FY27) (source)
🔲 Rollout completed (Full rollout across ~40% of customer's global store network)
🔄 First $9.1M ARR payment received
New Sales from the advanced stage pipeline
We want to see ROC convert some of its ~17,000 site advanced-stage sales pipeline into new signed deals.
Here are the milestones we are tracking:
🔄 Multiple advanced pipeline opportunities in scaled deployment contract discussions
🔲 New deal signed #1
🔲 New deal signed #2
🔲 New deal signed #3
