AppsVillage smashes guidance, revenue up 58pc
Link copied to
Special Report: AppsVillage’s first complete quarter on the ASX delivered more than it promised.
AppsVillage (ASX: APV) has beaten its December quarter guidance, with revenue surging 58 per cent.
Annual recurring revenue reached $1.34m and monthly recurring revenue came in at $111,898, each representing a 58 per cent increase over the September quarter.
The company had 6,418 paying subscribers during the quarter, representing a 323 per cent increase year-on-year and 7 per cent higher than outlined in its revenue guidance issued in early December.
This represents a significant achievement for the company and demonstrates its ability to deliver on its core growth strategy.
Behind the numbers, the AppsVillage story is one of strong commercial growth as during the quarter it expanded its service offering and introduced micro-finance services to its small and medium business (SMB) clients.
As part of this offering AppsVillage will offer one-click credit and loans of between $5,000 and $50,000 to existing customers within Australia and the US before it is rolled out more widely.
The company also partnered with US companies Seek Capital and Fundomate, and Lumi Financial Management in Australia to offer white labelled microfinance products to its existing SMB customers as well as its extended database of over 500,000 SMBs globally.
AppsVillage was as active building its financial war chest in the quarter as it was in securing sales.
The company successfully completed a private placement to key strategic funds and sophisticated investors in both Australia and Asia. The placement raised $2.5m by issuing 10 million shares.
Merchant Corporate Advisory acted as lead manager to the transaction. AppsVillage will use the funds to continue its operational expansion into the US and implement an aggressive customer acquisition strategy to deliver strong commercial growth in the coming quarters.
The placement followed a strong acceleration in operational and commercial performance since the company’s IPO in August 2019 and the funds raised will ensure AppsVillage remains in a strong cash position to deliver revenue growth in 2020.
It also appointed former Israeli Defence Force officer Shahar Hajdu to its board.
Hajdu was a captain in the IDF elite technology unit, Mamram, and he brings more than 25 years’ experience in mobile and full stack software development.
>> NOW WATCH: 90 Seconds With… Max Bluvband, AppsVillage