Actual Experience plc (LON:ACT), the analytics-as-a-service company, has announced that it has been awarded a multi-year Continuous Improvement contract from a leading global energy supplier. This follows a successful Business Impact Assessment project which the Customer completed in collaboration with one of Actual Experience’s Channel Partners.
· The CI contract is with the UK arm of a leading global energy supplier
· The total value to Actual is expected to be approximately £1 million, based on the initial contract
· The contract is for an initial three year period with potential for subsequent extensions
· This is the first large customer to convert to a CI engagement having initially completed a BIA project
This new contract award follows Actual Experience’s initial work undertaking a BIA for the Customer in March 2021, from which a number of significant operational and financial benefits for the Customer were identified. Under the terms of the contract, Actual Experience will identify further potential operational inefficiencies, as well as gaps in ESG, diversity and inclusion policies, and recommend improvements as necessary. This project is expected to deliver significant actionable data to the Customer as it shifts its focus to hybrid working following the pandemic, and will demonstrate the value of our new professional services offering to other large enterprises.
This contract win provides Actual Experience with a potential opportunity to execute on its ‘land and expand’ business model, whereby the initial revenue stream will expand if the Customer adds more employees to the service.
This contract win represents significant validation for Actual Experience’s new professional services business model:
· Market validation – that our key sales opportunities are with businesses transitioning to hybrid working post pandemic;
· Target customer validation – that our key target customers are large enterprises; and
· Product validation – that our BIA demonstrates the significant economic benefit to customers of our actionable data, enabling upselling to an initial CI contract, with the potential thereafter to expand into a larger portion of the customer’s business (‘land and expand’ strategy).
This contract win is the first of a number of direct sales and channel partner sales opportunities that the Company is currently targeting. The total addressable market of employee in the sales pipeline has grown from four million to more than ten million since January 2021.
Dave Page, CEO of Actual Experience plc, commented:
“This contract win is a significant milestone for Actual Experience. It follows our pivot to professional services and is validation of our new business strategy.
With the potential to further enhance the value of this contract with our ‘land and expand’ strategy, in the UK and internationally, as well as providing an important reference customer, this contract is a significant milestone for the business.
With further opportunities in the pipeline, we look forward to updating the market with news on our progress in the coming months.”