Boardwalktech Software Corp., the quiet player in the enterprise software space, just released their Q3 2024 earnings transcript. While the headlines focused on a revenue dip and operational shakeups, something else jumped out from the text, something with the potential to rewrite the company's trajectory: a subtle shift in the relationship between their flagship Digital Ledger platform and the newly launched Unity Central product. This subtle shift, I believe, is a critical piece of the puzzle that most analysts seem to have missed.

Here's why this is significant. For years, Boardwalktech has been known for its Digital Ledger, a powerful tool that helps enterprises manage complex, spreadsheet-driven processes. It's a proven winner, boasting a 48% CAGR in license revenue over the past three years. But the market was waiting for the next act, and Unity Central, focusing on document-centric workflows, was positioned as that next big thing.

Initially, the story seemed clear: Digital Ledger for spreadsheet issues, Unity Central for document challenges. Two products, two distinct markets. But the Q3 transcript, almost in passing, reveals a different narrative. Charlie Glavin, Boardwalktech's CFO, drops a key phrase: "Unity Central is not going to be the bigger driver probably over the next couple of quarters, but that's okay because part of that is as Unity Central is growing from virtually zero to material amounts, we're also getting traction within our digital ledger." He goes on to say, "We're actually getting a symbiotic relationship."

Symbiotic. That's not just two products coexisting; that's two products enhancing each other. It's a potential game-changer, moving away from a siloed product approach to a holistic platform play. Further bolstering this idea, Glavin explains, "Going forward, we will probably have a lot of these customers who will be doing both the Digital Ledger and Unity Central, and that is the point I want to make...We now can present to existing and prospective customers a holistic solution."

Think about what this means. Boardwalktech is no longer just pitching a solution for a specific problem (spreadsheets or documents). They're offering a comprehensive, integrated platform that addresses the entire spectrum of unstructured data challenges facing enterprises. This is a significantly larger value proposition, capable of commanding higher price points and driving deeper customer engagement.

The evidence is already there. Sekisui Specialty Chemicals, a longtime Digital Ledger customer, has already adopted Unity Central. And the transcript hints at other existing Digital Ledger clients showing interest in the new product. This land-and-expand strategy, combined with the holistic platform approach, could unlock a wave of growth exceeding even the most optimistic projections.

Projecting Boardwalktech's Growth

To put some numbers on this hypothesis, consider this: Boardwalktech's current ARR is $5.7 million, not including the full impact of recent deals. Let's assume their Digital Ledger business continues to grow at a conservative 20% annually. Now, factor in the potential of Unity Central to be cross-sold to even a fraction of those Digital Ledger customers, generating additional ARR. The combined effect could easily push Boardwalktech's ARR to $10 million or more within the next 12 months.

This isn't just wishful thinking. The market is ripe for this type of solution. A recent PwC survey revealed that 86% of supply chain executives haven't seen a return on their supply chain technology investments. Boardwalktech, with its combined platform, is perfectly positioned to address this unmet need and capture a substantial portion of this frustrated market.

Challenges and Opportunities

There are, of course, risks. Execution remains critical, and Boardwalktech needs to demonstrate the combined value proposition of Digital Ledger and Unity Central to both existing and new clients. They also need to ramp up their sales and marketing efforts, as acknowledged by both Duncan and Glavin in the transcript.

But the potential is undeniable. If Boardwalktech can capitalize on this "symbiotic relationship" between their products, they have a clear path to becoming a major force in the enterprise software landscape. The Q3 transcript, for those who read between the lines, just might be the first glimpse of that future.

Visualizing Boardwalktech's Potential

"Fun Fact: The term "symbiotic relationship" comes from biology, where it describes interactions between different organisms that benefit both parties. Just like in nature, a successful business ecosystem relies on mutually beneficial partnerships and integrations."