The Future of The Remote Workforce and What It Means for Investors

The workforce has adapted and is now more remote than ever before. For investors, this opportunity could represent significant potential as companies step up to meet the demands of employers and teleworkers around the world. Investors have begun asking important questions:

  1. Should I invest in remote work solutions for the long term or the short term?
  2. What companies are best positioned to take advantage of opportunities provided by a growing mobile workforce?
  3. What solutions become demanded in a new world where more people work remotely?

Is the Remote Workforce Really Here To Stay?

Before the start of the pandemic, remote work was a perk that many employees sought. In fact, a study performed by Gallup’s Research in January of 2020 found that 54% of workers would be willing to leave their current position for one that would allow them to work remotely. However, very few workers were actually able to find remote opportunities prior to the pandemic with the Bureau of Labor Statistics’ National Compensation survey finding that only 7% of employees in the United States worked regularly from home during this time.

Of course, with the COVID-19 pandemic came the dramatic increase in demand for remote work. What was once an employer perk became a necessity for businesses to remain afloat, and the number of teleworking employees spiked. According to research led by SHRM’s COVID-19 Business Index, 64% of workers in the United States are currently working from home. This was confirmed by an additional independent source, Gallup’s Research, which found that 62% of U.S. employees are teleworking during the pandemic.

Employees and Employers Weigh In On Remote Work

With society desperate for balance, many people are asking: Is remote work the “new normal”? While a variety of important factors could be evaluated to determine this answer, the strongest statistics lay with employees and employers. For employees, remote work offers unmatched convenience, as well as savings for many in the form of commuting expenses. Studies have also shown that teleworkers may be experiencing increased productivity and prefer an out-of-office setting for tougher projects. A study conducted by CoSo Cloud found that 77% of employees reported greater productivity when working from home, while Atlassian found that 76% of workers prefer to avoid their office when they need to concentrate on a project.

For employers, transitioning to a remote workforce can mean a dramatic reduction in costs. These savings can be found by reducing office and real estate expenses. Global Workplace Analytics found that businesses could save an average of $11,000 for every part-time employee transitioned in a telecommuting role. With added convenience and savings, IWG also found that 69% of millennial workers would be willing to trade other benefits for flexible remote options, leading to the possibility of additional employer savings.

Cybersecurity Threats and The Remote Workforce

With both employees and employers experiencing the benefits of the remote workforce environment, teleworking has likely established itself as the “new normal”. However, there are still challenges to be addressed. Research conducted by GetApp, found that despite handling confidential business data from their home, less than half of the employees surveyed say they have received proper internet security training. In another study by iPass, 57% of CIOs reported that they were suspicious that their remote workers had been hacked or had caused a security threat. Studies have also shown an increase in cybersecurity threats as a result of the increasing number of remote workers, as well as a need for safer and more efficient data security alternatives to conventional VPN solutions.

One Company Focused on Remote Workforce Data Security

For investors, this challenge represents a unique opportunity as companies emerge with innovative technologies to tackle this growing problem. While numerous businesses strive to benefit from this opportunity by shifting their focuses in the recent months, one company has been developing remote data security solutions long before the pandemic began: Route1 Inc.

Route1 (ROIUF) is a publicly traded company that has become a leader in the data security space. With their patented solution, MobiKEY, Route1 offers the most advanced secure remote access solution available in North America. For employers, MobiKEY eliminates man-in-the-middle attacks, browser exploits, viruses and other malware by providing a secure way for their employees to work remotely. This technology utilizes comprehensive smartcard and PKI-based multi-factor authentication, which allows authorized employees and contractors access to their company’s assets securely. It reduces costs for employers by eliminating the need for companies to furnish or manage remote devices. The high cost of company furnished tablets and laptops, the software, security, and insurance on those devices, and the ongoing IT management of this hardware can be a significant line item on a company’s financial reports.

As Route1 continues to address the key challenges of data security in a remote world, interest in their technology has grown significantly, and interest means revenues. According to a recent financial report released by the company, Route1 reached record breaking gross profits of over $3 million in Q3 alone. This is largely due to their recurring subscription-based MobiKEY sales, which have helped the company produce growing revenues over the past several quarters.

So, who uses Route1’s remote access technology? Communities, enterprises, and government. Proven to be more effective than even the leading VPN technologies, Route1 recently secured a 4,000-user enterprise license agreement from a component of the Department of Defense, representing $1.5 million in annual revenues and the option to increase the subscription by 1,000 users at a time.

In addition to MobiKEY, Route1 also offers video technology solutions, secure rugged devices, and data acquisition and analytics solutions, which also contribute to their increasing revenues. Their extraordinarily relevant and patented data security technology in combination with their impressive growth tell us that Route1 remains undervalued. The data security company is trading at just under 50 cents per share with a market cap of around $16 million. Although full-year financials are not yet available, Route1 is on track to exceed its 2019 revenues of $24 million CAD.

For investors, the high revenues, relevance, and undervaluation combine for a strong investment opportunity in Route1 Inc, which is only further strengthened by the pressing and likely permanent demand of remote work solutions.

Route1: Building a Smart, Secure, and Adaptive Workforce

As the COVID-19 pandemic surges ahead and the remote workforce positions itself as today’s “new normal”, the investment potential of the data security space continues to grow. Surviving in the current environment means creating a smart, secure, and adaptive workforce. Investors looking for a company with innovative and relevant solutions for the challenges of the remote workforce, as well as the revenues and growth to support it, should consider Route1 before its valuation is reflected more accurately. To learn more about this company, visit Investors can also check out Stock Day Media’s latest podcast interview with Route1, here.