13 exciting high growth companies in 1? Sounds like good Ideanomics….
For investors looking at a way to tap into some of the biggest growth trends this decade then today’s company offers that in spades. Their focus is high growth companies and on improving them by providing capital as well as access to leading technologies and services designed to improve transparency, efficiency, and accountability.
The company is Ideanomics Inc. (NASDAQ: IDEX). Ideanomics is a rapidly growing investment company that provides the financial support for growing companies within disruptive industries such as electric vehicles (EVs), social media platform creation, and fintech & financial services. Ideanomics is headquartered in New York, USA, with operations in the U.S., China, Ukraine, and Malaysia.
By my count Ideanomics now holds an interest in 8 commercial EV related companies, 4 financial services companies, and 1 social media company. This means that buyers of Ideanomics effectively get to buy an interest in a total of 13 companies in 1.
Ideanomics revenue is growing rapidly
The recent financial results speak for themselves. In the full calendar year 2020 Ideanomics was busy acquiring new businesses and revenue was just US$27 million. Announced in May, Q1 2021 revenue was US$32.7 million. Interestingly the vast majority of the Q1 revenue came from Timios, the title & escrow business, which generated revenues of $27.6 million. Electric vehicles revenue was US$3.0 million and WAVE contributed US$1.8 million. This is more than all of 2020. Q1, 2021 gross profit was US$10.8 million, up from US$44,000 in Q1, 2020, which is really a stunning performance.
Furthermore, due to the new business acquisitions from the past year, Ideanomics revenue is forecast to reach US$129 million in 2021. If achieved, that would be an impressive 4.77x increase on 2020. 2022 revenue is forecast to climb again to US$145 million and 2023 to US$200 million, or approximately 7.4x higher than 2020.
In perhaps the understatement of the year, Alf Poor, CEO of Ideanomics, stated:
“Ideanomics is transforming dramatically quarter over quarter….I am both pleased and proud to say that as it stands today the company is the healthiest it has been in close to three years that I have been on board.”
Ideanomics earning summary from last 5 quarters
Source: Company investor presentation
An updated summary of Ideanomics’ business
Ideanomics Mobility – EV fleet sales, EV financing, EV charging and mobility services.
- Medici Motor Works aims to develop the North American specialty vehicle and pick-up truck market.
- Wireless Advanced Vehicle Electrification Inc. (‘WAVE’) develops inductive charging solutions for medium and heavy-duty vehicles in the U.S. Ideanomics acquired 100% of WAVE in early 2021. You can read WAVE’s latest news here.
- Mobile Energy Global (MEG, 100% owned) provides group purchasing discounts on commercial electric vehicles, EV batteries and electricity as well as financing and charging solutions in China.
- Treeletrik is an approved EV manufacturer and distributor for Malaysia. Treeletrik plans to drive ASEAN commercial EV sales leveraging Chinese & Korean OEM partners for manufacturing. Ideanomics bought 51% of Treeletrik in 2019.
- Solectrac develops and sells electric tractors and is based in California, USA. Ideanomics bought a 14.7% investment in Solectrac which was later increased to 22%.
- Energica Motor Company is an Italian electric motorcycle company. Ideanomics acquired 20%.
- SilkEV – Italian engineering and design services.
- US Hybrid – Announced in May 2021, Ideanomics acquired 100% of US Hybrid, a company that has pioneered clean transportation technologies for more than 20 years. US Hybrid offers proven zero-emission powertrain components for electric, hybrid and fuel cell medium and heavy-duty municipality vehicles, commercial trucks, buses, and specialty vehicles throughout the world.
Ideanomics Mobility – Ecosystem and shared services platform
Source: Company investor presentation
Social Media – Hoo.be – Ideanomics acquired a 20% ownership of social media all-in-one creator hub platform hoo.be in 2021.
Ideanomics Capital – This division focuses on fintech disruption and financial services.
- Timios Holding Corp. is a leading title and settlement solutions provider based in California USA with operations in 44 U.S states. Ideanomics acquired 100% of Timios Holdings Corp. in 2020.
- Delaware Board of Trade (DBOT) is a next generation broker-dealer bringing the best practices of capital markets to the small cap marketplace.
- Liquefy provides a tokenization and investor onboarding SaaS platform for institutional asset owners. Through its platform, illiquid assets can be traded on exchanges, have fractional ownership, and access global investors – all with automated compliance. Liquefy is a pioneer as the first firm to tokenize real estate and a VC fund in Asia.
- Technology Metal Market (TM2) is a London–based digital commodity issuance and trading platform for technology metals, including those used for EV battery production, energy storage systems, and solar cells.
Ideanomics Inc. 1 year stock price performance
Source: Yahoo Finance
Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption such as EVs and fintech.
Ideanomics continues to make smart acquisitions/investments in fast-growing companies within their circle of competence. Some of these are already returning significant revenue while others will require a bit more time. Ideanomics’ latest purchase of US Hybrid looks to be another good move. In total Ideanomics now has an interest in 13 exciting high growth companies.
Ideanomics stock price was on a tear peaking at US$4.95, but has recently had a pullback to US$2.46; which is well below the current price target of US$7.00. Be sure to take a deeper look at Ideanomics as management is very proactive and the company is growing very fast.