Video-Direct Insite Corp. President and CEO Matthew Oakes Interviewed by

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Kurshen: Hi, Ed Kurshen with your global investment network. We’re here at the Broadway Millennium in New York City at the Rodham Renshaw Investment Conference, surrounded by a lot of activity, a lot of noise. A very exciting day, a lot of exciting companies, but none more exciting than the gentleman sitting to my left, Mr. Matthew Oakes, the CEO and President of Direct Insite Corp. Matt thanks for being with us tonight.

Oakes: Thank you, thank you very much.

Kurshen: Sorry the Giants aren’t doing better.

Oakes: Yeah, it was a rough night last night, 15 more games, we’ll get there

Kurshen: Why don’t you us a favor, give us a brief overview and a history of your company.

Oakes: SaS based business. We are currently headquartered in Fort Lauderdale, FL we’ve been there for about two years. About 50 people, about 9 million dollars in revenue, we serve some of the largest companies in the world and we do AP automation and transformation. So our play very simply is, we come into an organization that is largely paper based that has a lot of people working doing very monotonous tasks that can be transformed or automated and then what we try and do is not only automate them but then provide value on the other side of it with hot data and information and dashboards that allow a CEO or executive run his business in a more streamline fashion, better information, more quickly, and also tie the relationship with his vendors and the other the B2B relationships he has more tightly.

Kurshen: You guys are over the counter?

Oakes: Bulletin Board traded DIRI and Direct Insite Corp.

Kurshen: What’s your current market cap?

Oakes: Current market caps around $20 million. We’ve seen a real nice surge in the stock in the last 6 months from about $0.60 up to about a $1.75 hovering right around $1.60 right now. It’s a good business, I think companies and investors are looking for automation and tools that they can deploy to make their labor more efficient, more effective and provide better financial results to their shareholders and their business partners.

Kurshen: What do you see as the growth prospects in your target market and how to do you plan to capitalize on that?

Oakes: 3 prong strategy. Number 1 only about 60% of our target market, which is the fortune 3000 has the automation tool in place. And so they’re now starting to look, as the economy starts to recover, businesses start to grow, they’re looking for tools, not necessarily having to hire more people but to implement tools. We see a market that is very manually task based in the back office along with a lot of paper based solutions and we just want the ability to come in, implement a transformation outsource plan, show you how you can move off paper onto electronic formats for the submission or the receipt of invoices and/or payments. And then really enhance your ERP system no matter what it is and use this tool to kind of super charge it and give yourself better information and like I said tighten the relationship with your vendors and your customers.

Kurshen: Tell our investment community a little about your company’s competitive edge, your strategic advantages over competitors.

Oakes: I think there are a couple things, we do a great job of getting participation in the network. We have a vendor network of approximately 350,000 distinct individual vendors, that we call users. I think what we do really well is we board those vendors into the portal and encourage them on behalf of the companies that they do business with to submit electronically and interact electronically. So I think our competitive advantage is that we not only have this very robust web based tool, that’s SaS, that’s pure cloud, but it also is something that the vendor is excited to use because it really streamlines and helps them with a submission and what they are trying to do with a company. This allows a vendor to see when the invoice is being submitted and track it all the way through the process of it being submitted, accepted through the workflow, payment status and then being authorized and then I think in the long-term as you see companies try and stretch their days payable outstanding and they really try to lengthen those payment terms, companies are going to need financing vehicles i.e. the company can take a discount capture but can I as a vendor receive my money faster and so I think that’s where you start to get into some financing vehicles and everything off the backend of this automation and that’s the real win-win. How do you get that vendor happier, how do you keep your vendors tightly linked with these big companies.

Kurshen: Tell us a little bit about your background and some of the other key members on your team.

Oakes: I’ve got a great executive team. I’ll take about them; my bio is up on the website. I have a phenomenal CTO a guy by the name Arnie Leap, a really outstanding sales executive in Joan Foley. The team that we have at Direct Insite we are a small company, 50 people doing 10 million in revenue tells you a lot about what you need to know based upon, we deal with the Hewlett Packard’s of the world, the IBM’s, the Citibank’s and big companies. I think something that has taken place is that I got a real proactive, strong Board of Directors that’s really forward thinking and wants to push these type of initiatives and taking some risk and getting out there and understanding not where the business is today but where’s the business going to go and how do I partner with management to get there. Great associates, great management team, and I think a really strong board. I’m really lucky to be the leader of the organization.

Kurshen: What are a few milestones or goals you hope to accomplish over the next 12 months?

Oakes: We always look for top line revenue growth but we also try and manage that with being profitable at the same time and invest really prudently in those things that are going to provide us long term benefit to the shareholders. So not a lot of ready, fire, aim, ready, fire, aim, this is a lot of really managed growth looking at where the opportunities as this market continues to evolve. The good news is we are sitting in a spot right now where the market is coming in this direction. Getting out of paper based solutions, getting away from manual processes and automation and transformation initiatives is only going to become a buzzword as information needs to be collected faster. We look at this where a CFO or CEO used to be you wanted financial reporting once a month then it was a couple times a month, then it was once a week and now it has almost turned into real time, on a daily basis. Where’s my money going, how’s it being utilized, how fast are we being paid, our fast are we paying- and these type of solutions are going to continue to transform that f and a that back office and I think we are going to be right in the forefront of that because of our core competencies we’ve got a great set of reference customers, strong group of associates and I think at the end of the day you see where the market is heading, and if you can stay out there in front and that’s what our goals are. And we measure ourselves daily, but I think quarter over quarter growth making sure we are there for every opportunity that comes in front of us and then capturing and moving the ball forward. That’s our goal.

Kurshen: Any additional closing comments for our investment community?

Oakes: Love to have you as a shareholder and I think we’ve got really nice company and coming to conferences like this and speaking with you helped that. So thank you

Kurshen: Matthew Oakes thanks for being with us.

Oakes: Thank you

Kurshan: Ed Kurshan See you next time.

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