Adveritas’ big backers send signal to market with major premium of $3m placement
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Adveritas’ $3m placement, which is backed by some of its existing top 10 shareholders, sends a message of further growth and profitability.
Digital ad fraud prevention specialist, Adveritas (ASX:AV1), is set to accelerate its growth further after a $3m cap raise.
The funds were raised via a placement to professional and sophisticated investors at 10c a share – which is a massive premium of 25% to Adveritas’ closing price on 21 October, and a 34% premium to the 15-day VWAP.
Several existing top 10 shareholders have supported the placement, including major shareholder and 9 times rich lister, Mark McConnell as well as new shareholders who are attracted to the company’s unique technology and rapid growth story.
The funds raised are expected to support Adveritas’ rapid growth amid the success of recent sales and market launch initiatives.
Since the start of 2022, Adveritas has seen its annualised revenue grow by a staggering 87% to over $3.1 million.
CEO Mat Ratty says the rapid growth which is becoming more predictable has put the company on a track to profitability in the near future.
“We are proud to see the continued support from our major shareholders as we deliver on our growth strategy and ramp up our already rapid growth,” said Ratty.
“Our strengthened balance sheet supports continued growth in annualised revenue, which has already increased by 87% this year, and we have a clear path ahead of us to profitability in the future.”
Adveritas’ flagship product TrafficGuard is an ad fraud prevention software that targets invalid traffic before it reaches a client’s ad budget.
The company has invested heavily in its sales and marketing capabilities, resulting in increased global market awareness of TrafficGuard’s solutions to clients across all four quadrants: Google PPC, Mobile app download, Affiliate and Social. This omni channel solution allows TrafficGuard to sell one product into a client and then cross sell into the other quadrants and increasing the contract value.
As a result, the platform is now increasingly being recognised for the significant benefits its multi-channel solution brings.
In 2022, Adveritas’ strategy has seen TrafficGuard achieve rapid growth underpinned by an increasing number of new onboarded clients.
A key part of Ratty’s strategy after validating the technology was to appoint good people in the right roles which started with the Company employing it’s global Chief Revenue officer, Matt Sutton (subsequently he is now the Company’s COO) and Chief Marketing officer Chad Kinlay.
Both additions have been a net positive for the business and it’s understood they have brought additional resources in to help scale the TrafficGuard technology.
Funds raised from the Placement will build upon the company’s growing client base by hiring additional personnel to manage the integration of potential customers – which is the phase preceding trial activation.
There are currently over 60 companies in this phase.
The funds will also be used to hire additional personnel to support customers throughout their engagement with TrafficGuard, and cross-sell other products to them.
In addition, Adveritas will strengthen TrafficGuard by hiring key executives including a chief product officer to drive feature upsells and have the platform do a lot of the selling. This will be Ratty’s third key hire in 18 months, having scaled sales and marketing first.
The company says it will focus on converting Freemium subscribers to paying customers, as well as growing its channel partnerships.
SME (small and medium businesses of which there are millions) and larger enterprises will continue to be the focus of Adveritas’ strategy, according to Ratty.
“With our go-to market channels including our direct sales force, marketing agencies, Google Cloud Marketplace and other channel partners such as RavenTrack, we are well placed to continue our growth trajectory across enterprise and SME clients.”
“Our company is in a strong position to grow market share across the key regions through a combination of new clients and cross selling to existing clients.
This article was developed in collaboration with Adveritas, 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.