GenIP shares rose in early trading on Tuesday after the Generative AI analytics company announced a sharp increase in sales.
According to a market update released on Tuesday, GenIP has already sold 40% of a year’s revenue for its legacy product in just one month since the launch of its Generative AI services.
GenIP shares were up 8% at the time of writing.
The company said they were ‘encouraged’ by early orders which included a Fortune 500 technology company doubling its order rate.
“We are highly encouraged by the strong demand for GenIP’s Generative AI analytic services over the past five weeks, with total orders amounting to approximately $121,000,” said Melissa Cruz, CEO of GenIP.
“We remain laser-focused on building on this momentum, expanding our client base, and delivering our services to research organisations globally.”
The current rate of orders suggests annualised revenues of around £1m, which implies a forward price-to-sales ratio of just 5x at the current share price for GenIP. Technology companies tend to trade at 10x, suggesting an element of value in the current share price.
When you take into consideration the new Gen AI services were launched just one month ago and the company is in ongoing discussions with new and existing customers, it’s not inconceivable GenIP’s sales will be a lot higher over the following one year period.
Indeed, the company said its ‘anticipates the level of new orders from current and new customers to grow’.
While the UK equity market is still getting comfortable with this company, recent orders suggest that GenIP’s clients are more than comfortable with its service.