on Jan 13 2014
Large companies have teams called “Bill Review Units” that review and adjust legal bills (vaguely similar to medical bill adjustment). Today, these teams are entirely manual.
We programmatically review 100% of the incoming bills to automate or assist in the reviews.
For smaller companies, those spending <$25M/yr on legal bills, no tools exist today. They are forced to manage PDF or paper bills and retype amounts into Excel.
We bring a streamlined version of the tools larger companies use down to this market. We are the data supply chain connecting the law firm, in-house legal, and finance teams.
For smaller companies, the “status quo” is the main competitor. They have people today who manually re-key invoice amounts into Excel to allocate expenses.
For larger customers, potential competitors are the existing eBilling vendors: Bottomline (NASDAQ: EPAY), DataCert, CSC, Mitratech, LexisNexis, and Thompson Reuters. They don’t offer what we have but they claim to come close through basic key word filters.
An outside company like HearsaySocial could escape their “social” roots. They have the skill set, the enterprise sales force, and industry credibility to launch a competing product. But they could represent more opportunity than threat because both of our customers would likely be interested in both sets of products.
Existing vendors run 50% gross margins (NASDAQ: EPAY). So for them, life is good. Why change?
Their value used to come from connecting to law firms. But with today's technology, securely sending and receiving files is a commodity. Unburdened by legacy systems, we built a platform to connect to all law firms. We understand that sending/receiving data is critical, but is a commodity.
We believe the real value comes from helping customers understand what to do next to actually help them save time and money. Our machine learning software makes it clear to our customers what they should do next.
We charge a subscription fee based on the volume legal dollars billed through the application. That’s how companies currently pay for products in this space.
Incumbents today who only offer a portion of what we offer have revenues > $100M/yr.
Customer acquisition is a combination of distribution parters to a broad array of smaller customers and direct enterprise sales to larger enterprise customers.
We have a distribution deal pending with a large PE firm to provide our service to their portfolio companies.
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