Adveritas books major revenue upgrade as it prepares to go live on Google Cloud in FY22
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Adveritas’ market-leading TrafficGuard ad fraud prevention software has been selected as the only certified ad verification vendor on the Google Cloud platform.
Data software company Adveritas (ASX:AV1) confirmed its operating momentum in the June quarter with another strong revenue result this morning.
The company said it booked new contracts for the quarter that will contribute another $350,000 in annualised revenue, bringing total AR to around $1m by the end of June.
“This marks a 60% increase in annualised revenue from Q3 FY21 — a key lead indicator of future revenue,” the company said.
Heading into FY22, AV1 has already contracted another $190,000 of AR in the month of July, amid rapidly expanding growth in its customer base.
Within those top-line growth numbers, Adveritas’ ad fraud prevention software, TrafficGuard, contributed Q4 revenues of $290,000 – a gain of 35% from Q3.
And the company flagged a key operational update in this morning’s announcement, with TrafficGuard set to go live on the Google Cloud Platform before the end of the September quarter.
AV1 said admission to the Google Cloud marketplace was a “key priority” for the company, in line with the strategy of “other major SaaS companies that have utilised Cloud marketplace benefits”.
In addition, TrafficGuard has been selected as the only certified ad verification vendor on the Google Cloud platform, giving AV1 a first-move advantage in a major distribution channel for enterprise clients.
“TrafficGuard will have direct exposure to all Google Cloud Platform customers, with the support of the global Google Cloud Platform sales team,” AV1 said.
The launch of TrafficGuard will follow on from a carefully-planned development period which resulted in the successful migration of the relevant Adveritas infrastructure onto the Google Cloud platform.
Those changes set the business in good stead “for further rapid growth”, AV1 said. The company also reduced its operating expenditure by 12% in Q4 after implementing a more streamlined cost structure as it looks to drive higher margins in the year ahead.
TrafficGuard’s dataset is based on its profiling of more than 700m IP addresses globally (of the 4.6bn available IPs on IPv4). Each day it adds close to 1m new IP addresses, and uses its proprietary technology to score that IP and filter out fraudulent addresses.
With strong momentum across all of its key-performance metrics, Adveritas is poised to convert that groundwork into a material revenue uplift in the year ahead.
The company has found early success with its ‘Freemium’ model user acquisition strategy, which rose by 20% in the June quarter to 2,750 customers.
AV1 executed on a conversion rate of 13% for Freemium customers into recurring SaaS customers, which exceeded management’s expectations and is comfortably in excess of the global 2-5% average.
“New marketing initiatives to be rolled out in Q2 FY22 should see both Freemium sign ups and conversions increase,” AV1 said.
The company also bolstered the strength of its capital raise with a $3m share placement in the month of July, to fund its FY22 growth initiatives.
Commenting on the outlook, Adveritas CEO Mathew Ratty said the company has deployed its fraud-prevention software for multiple global clients following successful product trials – deals which will “underpin our future revenue growth”.
“Our pipeline continues to build, with several global companies currently undertaking trials and current customers trialling additional services,” he said.
“The recent increase in our customer base which spreads across enterprise, mid-level and Freemium conversions, combined with new sales initiatives we have put in place gives me great confidence we will achieve significant growth in the coming quarters.”
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.