Fraud protection platform Adveritas accelerates in Q3 as quarterly TrafficGuard sales surge by 95pc
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Adveritas’ strong growth in revenues and freemium user base during a productive quarter was underpinned by its large enterprise contract wins, and acceptance into the Google Cloud Marketplace.
Ad fraud prevention company, Adveritas (ASX:AV1), has continued its rapid growth trajectory, accelerating revenue and its freemium use base in the last quarter.
For the September quarter, the company’s revenue was up 57% q/q to around $1.6 million.
Its flagship platform, TrafficGuard, reported $565k of sales in Q1 FY22, up a massive 95% from Q4 FY21.
Sales of Traffficguard has also brought in a record $422k in cash receipts, up 150% from the prior quarter.
It was an extremely productive quarter for Adveritas, highlighted by its acceptance and integration into the Google Cloud marketplace.
In July, TrafficGuard was selected as the only certified PPC (pay per click) ad verification vendor on the Google Cloud platform.
“We made substantial progress with scaling our revenue during the September quarter, signing up a number of market leading enterprise customers to increase annualised revenue by 57% since June, reaching circa $1.6 million,” said Adveritas CEO, Matt Ratty.
The September quarter (Q1 of FY22) saw Adveritas sign up several key customer contracts, adding around $585k in annualised revenue.
This was a 57% increase over the prior quarter, a testament to the successful execution of its growth strategy which includes making investments into its sales and marketing initiatives.
Major contracts signed for the Trafficguard platform during the quarter include Indonesian unicorn ecommerce platform JD.ID; CAR24, a platform for pre-owned autos, and Singtel, Asia’s leading telco company.
AV1 also has a growing pipeline of companies on trial in the sports betting and gaming, retail, and finance verticals across Asia, Europe, India, and Australia.
In the growing sector of sports betting , AV1 has also signed major enterprise contracts that will allow it to tap into the multi-billion dollar market.
Contracts signed in this segment include heavyweight Betfred, the largest private retail bookmaker in the UK; Betbull, a rapidly growing social sports betting company that has partnered with the Wynn Group; and Palmerbet, an Australian sports betting company with a 50-year history.
Adveritas also continues to rapidly grow its freemium subscribers, which is usually a strong leading indicator of future revenue growth.
The freemium subscriber base provides a paying customer pipeline with significant cross and upsell potential, and a rich data set across multiple industry verticals and markets.
Over Q1 FY22, AV1’s freemium subscribers increased by 17% to over 3,100, providing a large base of users to convert into paying customers.
A Chief Marketing Officer has been appointed to further drive the conversion of freemium subscribers to paying customers, as well as increase the conversion and retention ratios.
“We are highly encouraged by the increasing number of enterprise trials taking place, and look forward to converting the majority of these companies into paying clients in the months ahead,” said CEO Ratty.
Acceptance into the Google Marketplace has been a key priority for Adveritas over the last nine months, as the company looks to rapidly scale TrafficGuard’s services by taking advantage of Google’s extensive reach.
All solutions that are accepted into the Google Cloud Marketplace have been vetted by Google against security vulnerabilities.
This results in reduced contracting times and makes it easy for customers to adopt solutions, allowing them to quickly deploy functional software packages that run on the Google Cloud Platform.
AV1 says this integration will provide Trafficguard with access to Google Cloud’s huge customer base across numerous key targeted countries, and in the process increase AV1’s annual recurring revenue.
“As a result of the launch of TrafficGuard on the Google Cloud Marketplace, the growing recognition of our solution from client testimonials and our revitalised sales approach, we expect to continue to rapidly grow through the remainder of FY22,” Ratty said.
To accelerate sales and marketing activities, Adveritas raised $3 million via placement in July, further strengthening its balance sheet.
Ratty says that Trafficguard is increasingly being recognised for the significant benefits its multi-channel solution brings, which is solving a massive global ad-fraud problem.
Digital advertisers’ total loss to fraud is indeed becoming a major problem for the industry, and is forecast to hit $100 billion by 2023.
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.
“Recent client wins provide powerful use cases, as new customers see around 15-25% of ad fraud on average, and in some extreme cases upwards of 80%,” Ratty explained.
“TrafficGuard automates the removal of invalid traffic so it does not impact on our clients’ budgets, and clients now have the added bonus of clean analytics on which to base informed decisions.”
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.