Jim Roberston

SmallCap Network (SCN)

Ask any seasoned investor what makes a technology business truly valuable, and you’ll often hear one word: recurring. Unlike one-off sales that constantly require new customers, recurring revenue compounds over time, delivering predictability and operating leverage. It’s why subscription businesses, SaaS platforms, and ad-driven ecosystems often trade at premium valuations.

This is where MiMedia Holdings Inc. (TSXV: MIM | OTCQB: MIMDF | FSE: KH3) is positioning itself. MiMedia isn’t just building another consumer app that hopes to be downloaded. Instead, it is in the process of embedding itself directly into tens of millions of Android smartphones as the default media gallery, in partnership with major telecom carriers (telcos) and device manufacturers (OEMs). The result? Every new phone that ships with MiMedia is effectively a new customer locked into a recurring revenue funnel.

The Recurring Revenue Engine

MiMedia’s revenue model is elegantly simple but powerful. It relies on two primary recurring streams:

Mobile Advertising: Ads are delivered inside MiMedia’s visually engaging gallery application. These ads are designed to be non-intrusive, yet strategically placed where engagement is highest. As more devices deploy MiMedia, the advertising inventory scales exponentially. Advertisers are already paying US$12+ CPMs in the U.S., proving demand for the platform’s audience.

Cloud Storage Subscriptions: Every user gets a free storage tier, but as photos, videos, and documents accumulate, many will upgrade to paid plans. Even a 1-3% conversion rate creates a high margin recurring revenue base. Subscriptions bring SaaS-like economics into MiMedia’s model, with high gross margins.

Together, these two pillars transform every shipped device into a monetization opportunity.

The Numbers Behind the Model

MiMedia has outlined a clear set of projections for the future:

40 million devices deployed with MiMedia.

US$200M+ gross revenue potential at scale.

US$20M-$40M recurring revenue from subscription conversions alone.

Net revenue run-rate of US$130M+.

To put these numbers in perspective, MiMedia today trades at a fraction of that future revenue potential. Many SaaS companies with similar revenue trajectories trade at billions in market capitalization. For retail investors, this gap represents a compelling opportunity.

How Distribution Drives Revenue Without CAC

One of the biggest challenges in consumer apps is customer acquisition cost (CAC). Whether through advertising, influencer campaigns, or paid promotions, CAC can eat away margins and make scaling unprofitable.

MiMedia sidesteps this entirely. By embedding directly into smartphones via partnerships with Walmart LATAM, América Móvil, Telcel, Orbic, and Schok, MiMedia starts with the user already on board. No app store downloads. No marketing blitz. No CAC.

This is why MiMedia’s model is so powerful: every new device sold is effectively free user acquisition. As the company likes to put it, MiMedia is not competing for attention in the noisy app economy, it is becoming part of the phone itself.

Financial Leverage and Non-Linear Growth

Here’s where it gets interesting for investors. MiMedia’s cost structure is primarily tied to software development and R&D, which scale linearly. But revenue scales non-linearly because each incremental batch of devices magnifies advertising inventory and subscription potential.

For example:

At 5M devices, MiMedia would generate ~$20M revenue.

At 10M devices, revenue doesn’t just double, it should accelerate toward ~$40M+ thanks to stronger ad demand and network effects.

By 30M devices, management projects ~$120M in advertising revenue alone, before counting subscriptions.

That kind of scaling profile is why investors prize platforms with recurring revenue funnels. Once distribution kicks in, revenue growth outpaces cost growth dramatically.

Strategic Partnerships as Revenue Catalysts

MiMedia’s partnerships aren’t theoretical, they are signed, sealed, and already rolling out.

América Móvil and Telcel: The largest carriers in Latin America, representing hundreds of millions of subscribers, are positioned to expand MiMedia’s reach across key growth markets.

Orbic & Schok: OEM deals in the U.S. ensure MiMedia gains visibility in North America, broadening its advertising base. 

Walmart’s Bait: Mexico’s third-largest carrier with 18M+ subscribers will preload MiMedia across selected new smartphones, while pushing updates to existing ones.

Each partner represents a distribution channel that feeds directly into the recurring revenue machine. As more partners are added, device rollouts will accelerate, compounding financial upside.

Why the Market is Undervaluing MiMedia

At present, MiMedia’s valuation is still tied to its status as a small-cap growth stock. But the financial profile it is building mirrors that of established SaaS and cloud companies: high gross margins, recurring revenues, and global distribution.

Why the disconnect? Simply put, the market has not yet priced in the scale of MiMedia’s partnerships or the magnitude of its device funnel. That creates asymmetry: limited downside because of existing deals, but massive upside if execution continues.

It’s worth remembering that many of today’s tech giants were once small caps trading at modest multiples before recurring revenue models unlocked Wall Street’s attention.

Potential Acquisition Value

Recurring revenue businesses don’t just attract investors, they attract buyers. Tech history is filled with acquisitions based on monetizable user data and engagement:

Instagram sold for $1B in 2012.

WhatsApp sold for $19B in 2014.

LinkedIn sold for $26.2B in 2016.

MiMedia, with tens of millions of embedded users, high-margin recurring revenue streams, and a patent portfolio of 16 issued patents, has the DNA of a potential acquisition target. If advertising ARPU continues to climb and partnerships scale globally, larger players could see MiMedia as a bolt-on acquisition to capture Android’s underserved ecosystem.

Retail Investor Takeaway

For retail investors, the case is straightforward:

MiMedia is contracted for 35M device rollouts.

Full rollout at scale represents a recurring revenue funnel worth ~$200M+.

The model is high-margin, low-CAC, and globally scalable.

Partnerships with Walmart LATAM, América Móvil, and others validate the strategy.

Upside includes both revenue growth and potential buyout value.

In short, MiMedia is one of those rare small-cap plays where recurring revenue potential meets distribution certainty.

SCN Conclusion

Recurring revenue separates winners from losers in the technology space. MiMedia’s model, powered by pre-loaded distribution, mobile ads, and subscription upgrades, is designed to scale into hundreds of millions in predictable, high-margin revenue.

For Android’s 3.5B users, MiMedia offers an iCloud-style solution. For investors, it offers a ground-floor opportunity in a company transforming smartphones into recurring cash machines.

Learn more: Visit MiMedia’s Investor Page