SeeThruEquity Issues Update on MassRoots, Inc. (OTCQB: MSRT)

NEW YORK, NY / ACCESSWIRE / January 10, 2017 / SeeThruEquity, the leading independent equity research firm focused on smallcap and microcap public companies, today announced it has issued an update on MassRoots, Inc. (OTCQB: MSRT).

The report is available here: MSRT Update Note.

MassRoots Founder and CEO Isaac Dietrich issued an upbeat year-end letter to investors and stakeholders of MassRoots on January 4, 2017, highlighting the recent accomplishments by the company, important corporate development initiatives including the hiring of a CFO, and the significant opportunities for growth going forward. In our view, with a critical mass of users, strong industry trends, and growth buoyed by organic and acquisitive means, MassRoots is emerging as a leading technology provider in the rapidly growing cannabis space.

The company achieved stellar percentage growth in 2016. We were impressed by 3Q16 results at MassRoots, which met our expectations for rapidly climbing revenue from a small base as the company seeks to monetize its sizeable user base. Revenue reached $794,621 in the first three quarters of 2016, well ahead of $63,982 in the comparable year-ago period. Though from a small base, the company has only just begun to monetize its users, and this represented stellar 1,140% YoY growth over the first three quarters of 2015. Dietrich suggested this growth has continued in 4Q, stating that the company’s growth and expense trajectory has MassRoots on pace to generate positive adjusted monthly operating cash flow in the first half of 2017E.

Highlights from the note include:

Robust Growth sprouting at MassRoots as sales accelerate

MassRoots has demonstrated strong growth from a small base in 2016, as it begins the process of monetizing its 900,000+ user base. The company generated revenue of $794,621 during the first three quarters of 2016, representing stellar 1,140% growth from $63,982 in the comparable year-ago period. Dietrich suggested MassRoots’ strong growth has continued in 4Q in his investor update, noting that the company’s current growth rate had placed it “on track” to be cash flow positive on a monthly basis in early 2017 – which would be a major milestone. Looking ahead, Dietrich has set an intermediate-term goal of reaching a similar revenue scale as industry leaders Weedmaps and Leafly in 18 months. While our outlook is slightly more conservative, this would be a significant accomplishment given that Weedmaps and Leafly are expected to generate more than $25mn and $15mn, respectively, in 2016 sales.

Favorable industry trends support growth, acquisitions

MassRoots’ expectation for robust growth appears to be supported by strong industry trends, and the its recent acquisitions strategy position it well as a leading tech provider in the rapidly growing cannabis space. According to projections from ArcView Market Research & New Frontier Financial, the regulated cannabis industry is expected to grow from $5.7Bn in 2015 to reach $23.1 Bn in 2020, representing a CAGR of 35%. Industry growth appears to be supported by the regulatory / political climate, with eight states voting to regulate the production and sale of cannabis in November. It is worth noting that three quarters of MassRoots revenue comes from Colorado and California, so the company should be positioned to drive growth as new markets emerge for growth. Management also expects growth to accelerate from its acquisition of Whaxy in the dispensary space, and we would expect MSRT to look at additional moves in the future to capitalize on this growing market.

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About MassRoots, Inc.

MassRoots Inc. (MSRT) is one of the largest and most active technology platforms for cannabis consumers, businesses and activists with over 900,000 registered users. It is proud to be affiliated with the leading organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association. MassRoots has been covered by Fox Business, CNBC, Fortune, Denver Post, and The Financial Times. www.MassRoots.com.

About SeeThruEquity

Since its founding in 2011, SeeThruEquity has been committed to its core mission: providing impactful, high quality research on underfollowed smallcap and microcap equities. SeeThruEquity has pioneered an innovative business model for equity research that is not paid for and is unbiased. SeeThruEquity is the host of acclaimed investor conferences that are the ultimate event for publicly traded companies with market capitalizations less than $1 billion.

SeeThruEquity is approved to contribute its research reports and estimates to Thomson One Analytics (First Call), the leading estimates platform on Wall Street, as well as Capital IQ and FactSet. SeeThruEquity maintains one of the industry’s most extensive databases of opt-in institutional and high net worth investors. The firm is headquartered in Midtown Manhattan in New York City.

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SOURCE: SeeThruEquity

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