DirectLink Expects To More Than Double Calix SmartBiz Subscribers in the First Quarter With Rapid Adoption Among Oregon-Based Small Businesses
- DirectLink is on track to double their SmartBiz subscribers in the first quarter of 2024
- SmartBiz provides comprehensive, purpose-built solutions for small businesses
- DirectLink has seen rapid success with SmartBiz, meeting adoption expectations, securing 100% app adoption, and increasing accessibility by adding the business productivity solution to their existing package
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Insights
The rapid adoption of Calix SmartBiz by DirectLink in Oregon reflects a growing trend in the broadband market where managed Wi-Fi solutions are becoming integral to small business operations. This surge in subscriber base, particularly in a niche market segment like small businesses, can be indicative of a strategic pivot that may have long-term revenue implications. The reported doubling of subscribers within a single quarter suggests a successful market penetration strategy and could signal a positive trajectory for Calix's growth in the managed services sector.
From a market perspective, DirectLink's ability to exceed adoption expectations within three weeks and the reported 64 percent increase in business subscribers over three months demonstrate a strong product-market fit for SmartBiz. Such performance metrics are critical for investors as they reflect not only the potential for increased revenue streams but also the efficiency of DirectLink's go-to-market strategy. The 100 percent app adoption rate of the SmartBiz subscribers underscores the high level of engagement and satisfaction among DirectLink's customer base, potentially leading to higher customer retention rates and a stronger competitive position in the market.
The financial implications of DirectLink's adoption of Calix SmartBiz are multifaceted. On one hand, the increase in subscribers is likely to translate into higher recurring revenues and improved margins due to the nature of managed services. The operational efficiencies gained from using a unified platform like GigaSpire technology for service delivery could result in lower capital expenditures and operational costs, enhancing profitability.
However, it is important to consider the cost of customer acquisition and the investments made in the Smart Start for Managed Services program. While the initial results are promising, the long-term financial sustainability will depend on DirectLink's ability to maintain this growth momentum and manage costs effectively. Investors should closely monitor subsequent financial reports for metrics such as average revenue per user (ARPU), churn rates and overall profitability to better understand the financial health and potential of this strategic initiative.
The integration of SmartBiz into DirectLink's offerings is a testament to the increasing demand for tailored technology solutions among small businesses. The ability of SmartBiz to cater to a diverse array of business types, from coffee shops to law offices, highlights the versatility and customization capabilities of the platform. This level of customization is critical in the technology sector as it allows service providers to address specific needs and pain points of small businesses, which can vary significantly across industries.
Furthermore, the emphasis on network security and business productivity tools within SmartBiz's offerings aligns with the broader industry trends towards comprehensive cybersecurity solutions and efficiency-enhancing technologies. As businesses increasingly rely on digital infrastructure, the demand for such integrated solutions is expected to grow, positioning Calix and DirectLink favorably within the technology services market.
As a flexible and purpose-built managed Wi-Fi solution that enables the success of small businesses, Calix SmartBiz proves wildly popular in
As a managed service fully integrated into the Calix broadband platform, SmartBiz was simple for DirectLink to adopt and launch. Knowing their small business owners needed a network management solution that was purpose-built, easy to use, and flexible to serve any need, DirectLink strategically streamlined their SmartBiz deployment with a playbook and onboarding program. Fully supported by resources from the Calix Smart Start for Managed Services program, the cooperative is rapidly exceeding market share projections and reinforcing their position as the preferred broadband service provider (BSP) for small businesses in their region.
Prior to the launch of SmartBiz, small businesses in
Small businesses that partner with DirectLink now have comprehensive, purpose-built solutions to support everything core to their operational success, including high-speed internet access; dedicated Wi-Fi channels for guests, staff, and point-of-service devices; network security; and business productivity tools. DirectLink took advantage of these capabilities on the Calix platform to advance their business Wi-Fi package into a customizable, versatile offering catering to any small business.
By leveraging SmartBiz, DirectLink continues to achieve new successes with their business subscribers. Their achievements include:
- Meeting adoption expectations for SmartBiz in three weeks and converting 64 percent more business subscribers than expected over three months. DirectLink first deployed Calix GigaSpire® BLAST systems for subscribers interested in a tailored business solution. Because SmartBiz uses GigaSpire technology for service delivery, this deliberate planning created a quick and seamless implementation for early adopters without extra equipment. Existing business subscribers have continued to adopt SmartBiz, and the flexibility of the managed service is enabling the cooperative to add more new subscribers from unexpected business categories.
- Securing 100 percent app adoption of SmartBiz subscribers. DirectLink helped jumpstart SmartBiz adoption with a complete onboarding program, including a consultation to customize the application and training sessions to educate business subscribers on every feature, like DirectLink’s OMNI Pro-branded CommandWorx app. This mobile app allows business owners to manage their network on the go, and the unprecedented adoption reflects its incredible value.
- Increasing SmartBiz accessibility by adding to their existing package. To accelerate adoption of SmartBiz, the business productivity solution was added to DirectLink’s existing business offering. This creates the ultimate small business package to maximize productivity and drive customer engagement.
“What sets SmartBiz apart is its flexibility and seamless integration into any small business,” said Derrick Mottern, chief operating officer at DirectLink. “From insurance companies and law offices to coffee shops and local farms, we are seeing a diverse array of businesses now benefiting from productivity tools that will save them time and money. Since the launch of SmartBiz in October 2023, DirectLink is now on track to double our SmartBiz subscribers in the first quarter of 2024. With Calix, DirectLink is transforming our business model and our go-to-market strategy. We’re excited by how seamless it was for us to make this enormous impact on small businesses and our communities throughout Oregon.”
"DirectLink is a great example of what broadband managed service providers can achieve with the Calix platform," said Michael Weening, president and chief executive officer at Calix. "We designed SmartBiz to help BSPs like DirectLink easily adopt, deploy, launch, and support this managed service to quickly enter new markets while keeping their operational costs as low as possible. The high demand for SmartBiz from DirectLink is very impressive. They are showing how to help small businesses in their area, giving them the right tools to run their business effectively, while increasing revenue. DirectLink exemplifies how, together, we can make a big difference for the small businesses that are the core of local economies."
Download the How Broadband Service Providers Can Become the Catalyst for Small Business Growth eBook to learn how broadband providers can better serve small businesses in their communities.
About Calix
Calix, Inc. (NYSE: CALX)—Broadband service providers of all sizes leverage the Calix platform and teams to simplify their business and excite their subscribers to grow the value of their business and for their communities for generations. The democratizing power of the platform and portfolio of managed services enables them to operate efficiently, acquire subscribers, and deliver exceptional experiences. Calix is dedicated to driving continuous improvement in partnership with our growing ecosystem to support the transformation of our customers and their communities.
This press release contains forward-looking statements that are based upon management’s current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this release, and we assume no obligation to revise or update any such forward-looking statement to reflect any event or circumstance after the date of this release, except as required by law. Actual results and the timing of events could differ materially from current expectations based on risks and uncertainties affecting Calix’s business. The reader is cautioned not to rely on the forward-looking statements contained in this press release. Additional information on potential factors that could affect Calix’s results and other risks and uncertainties are detailed in its quarterly reports on Form 10-Q and Annual Report on Form 10-K filed with the SEC and available at www.sec.gov.
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Press Inquiries:
Zach Burger
669-369-1991
zach.burger@calix.com
Investor Inquiries:
Jim Fanucchi
investorrelations@calix.com
Source: Calix, Inc.
FAQ
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