For Crowd Media, proof is in the Q1 pudding after big October rally
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Special Report: After a busy September quarter, Crowd is in prime position for further growth in FY21.
For social commerce company Crowd Media (ASX:CM8), a steady run of news flow has converted into a strong market rally in October.
Shares in the company have almost doubled over the past month to new 2020 highs of 4c.
And in its quarterly 4C filing today, the company highlighted a combination of strategic acquisitions and steady revenue growth which have caught the market’s attention.
Headlining the result was quarterly revenue of $3.8m, which was consistent with the prior quarter and also included a 136 per cent surge in revenue from the Crowd Direct platform, to $317,000.
Momentum in the Crowd Direct division was driven by the launch of two new ecommerce beauty and skincare brands – MD Complete and Teadora.
CM8 also flagged an improvement in sales through its Amazon partnership, which provides a key distribution channel into its core markets via Amazon EU.
Subsequent to quarter-end, CM8 has also stayed busy on the acquisition front.
The company announced it has acquired the assets of I am KAMU, a Germany-based ecommerce website specialising in beauty products.
Bringing the I am KAMU brand in-house will allow CM8 to leverage its core strengths in social media, influencer marketing and conversational commerce to drive growth.
It also matches with the company’s broader strategic vision, to “sell exemplary products integral to the lives of European-based millennials on a Direct to Consumer model”, Crowd said.
“Crowd has deep experience in digital marketing to millennials and Gen Z in most European countries, across 12 different languages, and will be using influencer and performance marketing strategies to drive KAMU sales.”
The company’s AI-based chatbot now accounts for 65 per cent of customer queries without any human interaction, and Crowd is also applying for the relevant fintech and insuretech licenses to launch additional products in 2021.
Capping off a busy quarter, the company also paid down $500k of debt and accelerated the R&D program surrounding its investment in Forever Holdings Ltd, a London-based company that provides a platform for influencers to engage across digital channels in a 1-to-1 setting with followers and customers.
It all adds to an exciting outlook ahead, as Crowd looks to execute on the next phase of its multi-year growth strategy in FY21.
Near term, the company said it’s on track to book another record sales result for its Crowd Direct platform in the December quarter.
And over the next 12 months, Crowd anticipates signing up additional brands for its European marketplace as it drives marketing and distribution reach across multiple channels.
This article was developed in collaboration with Crowd Media, 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.