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ASX tech stocks: Total Brain confirms it’s underway with live IBM rollout, shares tick higher
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Among ASX tech stocks with news this morning, health & wellness platform Total Brain (ASX:TTB) ticked higher after confirming its live rollout — in partnership with computing giant IBM — is officially underway.
TTB first flagged the rollout at its investor presentation in July, when it said the US Veterans Affairs (VA) administration had made a public announcement on its website regarding the contract award.
The VA administration will mark the first government client of the IBM Health & Wellness 360 platform.
TTB and IBM
TTB’s tech offering is a SaaS platform that allows users to scientifically measure their brain capacity while also “managing the risk of common mental conditions”.
TTB supplies the Total Brain platform for use within IBM’s 360 platform, “which targets the support of large populations in transition”, the company said.
The rollout with the VA administration will see the 360 platform made available for use to 25,000 users, and is expected to generate around $590,000 in annual recurring revenues (ARR) for TTB.
“The contract between IBM and its government client includes provisions for potential deployment up to hundreds of thousands users over the next 2 years, representing a very significant additional ARR opportunity for Total Brain,” the company added.
Effectively, the deployment marks phase one of IBM’s health & wellness platform, which is funded by large government agencies and has the capacity to scale further, TTB said.
Shares in TTB rose by around 7% in morning trade to 29c. The stock popped above 40c in January this year, after slumping from above 80c at the onset of the pandemic in March 2020.
The company announced a $6.5m capital raise in July at 26c, which it said it would deploy to scale its partnership with IBM and pursue additional B2B opportunities.
In its share placement announcement, the company said its integration deal with IBM had the capacity to scale from initial ARR of $590,000 to as high as $15.6m.
In other ASX tech news
Payments platform Cirralto (ASX:CRO) is getting on the M&A trail, announcing plans to acquire software development company Greenshoots Technology.
The all-share deal will comprise an upfront consideration of $1.5m at 6.2c a share, with the potential for a further $3.6m in share-based payments if certain performance and revenue milestones are met.
The company said incorporating Greenshoots’ IP “completes Cirralto’s retail solutions capabilities, enabling it to focus on growth in eCommerce payments and consumer pay-later services to capture a greater share of the $50bn Australian ecommerce opportunity”.
Shares in CRO, which briefly mooned above 20c back in February, rose by 4.69% to 6.7c in morning trade.
And investors responded positively to a corporate presentation from data analytics company Pointerra (ASX:3DP) at the bi-annual ASX Small and Mid-Cap Conference.
The company flagged consistent growth in annual contract values, from $1.6m in Q1 2020 to $9.8m in Q4 2021.
3DP shares rose more than 17% to climb back above 40c, but the stock is still well off its 12-month highs above 90c it reached in late-February.
