ActivePort goes heroic, doubling revenue as it pursues a multimillion dollar software pipeline
Link copied to
ActivePort’s year-to-date revenue of $12.3 million puts the company on track for more than a 100% growth in revenue in H2.
Global software provider ActivePort (ASX:ATV) has reported strong software revenue growth and momentum as we approach the end of FY22.
The company’s group revenues have now climbed to $12.3 million on a year-to-date basis, on track for a double growth rate from H1 to H2 FY22.
ActivePort’s high margin software business continues to be the primary area of growth, as the company pursues a multimillion dollar pipeline within the segment.
A significant contract signed in this quarter was with India’s Lightstorm Telecom, a deal projected to bring in more than $1m to ActivePort.
Under the terms, ActivePort will deliver its Management and Orchestration (MANO) software to help Lightstorm build its utility-grade fibre network called SmartNet, which connects all of the major economic hubs in India via 45+ data centres.
This deal and others have resulted in ActivePort’s software-related revenue to climb to $1.23m as of May, with H2 revenue growing at 666% more than the $0.16m achieved in H1.
ActivePort CEO, Karim Nejaim, says that ActivePort’s share price has been hit along with many of its peers on the ASX as a result of the current market turmoil, but it is by no means a reflection on the state of the business.
“ActivePort is a global business that’s growing rapidly from a relatively small base, so I’m confident we can manage our way through this period of global economic uncertainty to deliver revenue growth across the business,” Nejaim says.
ActivePort’s Managed Services division also continues to deliver significant value to the group, providing new revenue opportunities.
Clients signed in this segment during the period include a large Australian utility and several Australian financial institutions.
ActivePort says it will continue to drive growth through this business, expanding reach into new markets and supporting the roll-out of ActivePort’s core software products. During Q4, ActivePort also announced several other new customers including a new expanded deal with Radian Arc.
Since 2020, ActivePort has been supporting Radian Arc’s global customer base of major telco providers by including its software into Radian Arc’s platform.
Radian is using ActivePort’s software used to orchestrate their GPU (Graphics Processing Unit) servers that are used by telcos globally to provide cloud gaming, artificial intelligence and Metaverse solutions at scale.
Combined with Lightstorm, revenues under both contracts are in excess of $10m.
It also goes to demonstrate the versatility of ActivePort’s software to help telco companies build new products and services for their customers.
In April, ActivePort announced the acquisition of Australian telco provider, Future Broadband.
Under the deal that’s expected to generate $1.8m in revenue, ActivePort will integrate Future Broadband’s technology into its Global Edge platform – delivering a single-vendor, self-service edge-to-cloud SD-WAN orchestration portal.
Global Edge is a self-service network portal that aims to simplify connecting offices, facilities, and devices at the edge of the network anywhere in the world, to data centres and cloud services at the core.
ActivePort has now progressed the integration of Future Broadband’s core technology into the Global Edge platform, and is now set to launch the Global Edge self-service system for automated network provisioning early in FY23.
ActivePort continues to develop its world-class software, and in May announced ActivePortal version 6.5.
This release included network function virtualisation (NFV) at the network edge that allows customers to deliver integrated SD-WAN and network security on a single device in their branch offices.
NFV allows customers to rationalise their network equipment from many devices to just one that can run routing, voice, switching and security technology from almost any vendor across ActivePort’s integrated SD-WAN.
“ActivePort continues to deliver on all fronts, and we have several exciting projects in the sales pipeline,” Nejaim says.
This article was developed in collaboration with ActivePort, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.