Adveritas celebrates a huge first half with big new clients across betting, telco and marketplaces
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The firm’s strong first half reveals a digital niche specialist on track to convert its growing enterprise client pipeline into further sales ahead of the financial year-end.
Aussie digital ad-fraud bodyguard Adveritas (ASX:AV1) continues to make inroads after rapidly growing its revenue in the first half of FY22.
Following record sales in Q2, the company finished the half with a 68% jump in annualised revenue to more than $1.7m , compared to the previous corresponding period (pcp).
During the period, Adveritas continued to gain enterprise client wins, penetrating key verticals in lucrative sectors from betting to telecommunications and marketplaces.
Technological enhancement of its flagship platform TrafficGuard has underpinned this growth, and has also rapidly increased the Freemium user base by over 40% to around 3,800 corporate users.
“We expect this strong annualised revenue growth to be reflected in billed revenue and cash receipts during the remainder of FY22,” said Adveritas CEO, Mat Ratty.
“Our substantial Freemium pipeline continues to build, and we’re making investments to convert Freemium users into paying customers,” he added.
Adveritas has also finished the half well capitalised, with $6.4 million cash and no bank debt as at 31 Dec 2021.
Adveritas has continued to rapidly grow its Freemium subscribers, a strong leading indicator of future revenue growth.
This is because the Freemium subscriber base provides a strong pipeline with significant cross and upsell potential, as well as access to a rich data set across multiple industry verticals.
Adveritas’s conversion of Freemium to paying customers is approximately 8% for the half, beating the global average of 2-5%.
A new marketing officer, Chad Kinlay, was appointed in January to drive this conversion and increase retention ratios further.
Having enhanced the TrafficGuard platform, the company is now in a position to drive growth over the remainder of FY22 and beyond.
In January, Adveritas executed contracts with major global betting company, William Hill, and telecommunications provider, MyRepublic, along with a number of multi-billion dollar enterprises currently undertaking trials.
“We are establishing a strong pedigree of delivering client success in key verticals of online gambling, marketplaces and telecommunications, which we are leveraging to further build our pipeline,” Ratty said.
A major milestone was achieved in October 2021 when TrafficGuard was accepted into the Google Cloud Marketplace.
Cracking Google Marketplace had been a priority for Adveritas, as it rapidly scales TrafficGuard’s services via Google’s extensive reach. Adveritas says TrafficGuard is the only Australia and New Zealand based company that primarily exists online – and – been snapped up and on-boarded into the giant’s cloud marketplace over the last 12 months.
“We aim to leverage our integration with Google Cloud Marketplace to further accelerate growth in annualised revenue, as customers can easily procure TrafficGuard through the Marketplace, if Google is a preferred vendor.”
TrafficGuard is an ad fraud prevention software which targets invalid traffic before it reaches a client’s ad budget.
Using TrafficGuard, marketers, agencies and ad networks can both detect and prevent invalid traffic in real time in order to maximise the return on their advertising spend.
Digital advertisers’ total loss to fraud is becoming a decisive problem for a lot of businesses in the industry.
Those losses are forecast to hit $100 billion as soon as next year.
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.