The deal with Air Asia today marks the first step towards its goal in becoming the number one disruptor and market leader in Asia.

Wooboard Tech (ASX:WOO) has just signed a three-year landmark agreement with Air Asia Manila, onboarding the airlines’ staff to its enhanced Wooboard employee recognition and mindfulness platform.

The deal represents the first time that an enterprise customer has converted from a trial to a paid contract, as the company strives to become the market leader in Asia in this category.

Annual minimum subscription fee will be paid based on 1,550 user licences, with additional user licence fees payable if users exceed 1,600 activated users. The company currently charges $3 per user per month based on the current available modules, however rates will increase when new additional modules are rolled out in the coming months.

The deal comes as Wooboard makes new enhancements on its platform to differentiate and position itself as leader in the WFH mental health segment, as it strives to catch up to current market leader, BetterUp.

“BetterUp is undoubtedly the market leader and disrupter in the US market, and is valued at US$1.73 billion,” says Wooboard non-executive chairman, Rumi Guzder.

Number one in Asia

Woodboard has a platform well-placed for the post-Covid workforce. Its SaaS platform focuses on the mental health and wellness of remote workers, following the impacts of COVID-19 pandemic on workplaces around the world.

The company has been undergoing  its largest upgrade in over three years, focusing on improved integration with third-party applications and CRM systems, and the addition of tailored features for users who are currently working from home.

Since December 2020, the platform has secured trials with major international companies including Unilever, Walt Disney Corporation, Lululemon and Verizon Mobile.

Wooboard believes the market for employee recognition has been stale and is ripe for disruption, and aims to position itself as the number one disruptor in this category in Asia through the platform’s unique features and modules that it’s currently rolling out.

BetterUp is currently experiencing a surge in the US market, having recently signed Prince Harry, the Duke of Sussex, as chief impact officer.

WooBoard considers itself to be on a similar trajectory as BetterUp, based on the new modules currently in development and the interest it has received so far from trial enterprise clients.

Guzder says today’s deal is significant in Wooboard making the first step towards becoming the market leader in the continent.

‘Sticky’ business

The three-year deal signed today exemplifies the long term nature of enterprise customer contracts.

Typically, enterprises conduct a long due diligence process before deciding and signing a multi-year contract, bringing in thousands of their employees on board as users.

Once these users are on-boarded and users start to engage, it will be inefficient and costly to switch to other platforms –  making the contract a “sticky” commitment, and providing Wooboard with long-term recurring revenues.

Wooboard’s share price has jumped by more than 30 per cent today after the announcement.

This article was developed in collaboration with Wooboard Technologies, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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