# STG - Straker Translations



## System (13 October 2018)

Based in New Zealand and founded in 1999, Straker Translations has established itself as a leading global technology driven translation services platform. Straker has developed a hybrid translation platform that utilises a combination of machine translation and a crowd sourced pool of freelance translators.

Straker's cloud-based platform manages the end-to-end translation process, leveraging machine translation technology (comprising both third-party owned engines and engines within Straker's platform) to create a first draft translation and subsequently matching the customer's content with one or more of the approximately 13,000 crowd-sourced human freelance translators for refinement. This process is managed using Straker's proprietary 'RAY Translation Platform' which has been developed over eight years and is an enterprise grade, end-to-end cloud-based platform. By leveraging machine translation and its big data assets, the RAY Translation Platform enables the delivery of faster and more accurate translations, lowering the time and cost to deliver versus traditional translation services.

The platform can be integrated directly into customers' systems and consists of a customer dashboard, machine translation integration and modules for assisting and managing translators.

Being a cloud-based platform, Straker has the ability to capture vast amounts of translated data sets and data on the quality and speed of the freelance translators which is unlike many of its competitors where the work undertaken by translators is not performed on a centralised platform. As Straker's translation data set grows, so does the efficiency with which Straker and the translators can operate. Unlike many of its competitors, Straker primarily charges its customers by the word but translators charge by the hour. As the efficiency of its platform increases, this advantage is reﬂected in improved economics.

In FY18, Straker provided services for approximately 8,400 customers globally with 88% of pro forma revenues sourced from outside Australia and New Zealand.

It is anticipated that STG will list on the ASX during October 2018.

https://www.strakertranslations.com


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## Dona Ferentes (11 November 2020)

Shares in local small cap language translation tech company *Straker *have soared 49 per cent after it closed a potentially game-changing deal with tech giant IBM.

On Wednesday Straker announced that IBM had signed a two-year deal with the business to use its artificial-intelligence-powered translation services for 55 languages. The contract extends its relationship with the Aussie company, whose services it had been using since 2018, but previously only for Spanish translations.....

_Weekly, since listing :_


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## Tommy Shelby (5 June 2022)

2022 FY Annual Report highlights below;

$56m rev 2022
54% gross profit margin
$15m cash in the bank down from $25m from the cap raise last year.
Adjusted (_technically_) positive EBITDA
Forecasting 20% revenue growth next year ($65-70m)
I haven't dug too deeply into it but I assume that the majority of their revenue comes from IBM? obviously this creates questions around risk due to the client concentration.

The company goal is $100m revenue PA at a gross margin of 50-60% with current overheads at $35m approx. 

Market Cap of $77m which seems quite cheap when you run through it. Dumb question but how does this compare to Appen in terms of the model itself?


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