ActivePort’s ASX listing sets the stage for the next phase of its growth, as it expands rapidly in Australia and globally.

Global telecommunications software provider, ActivePort Group (ASX:ATV), is listing on the ASX today after raising $12m at 20c in an oversubscribed IPO led by Bridge Street Capital.

In just a short period of time, the innovative cloud software company is already experiencing robust growth, signing up global telecommunication clients and strategic partnership deals.

ActivePort has developed a software used to orchestrate data connections between offices, factories, sites and branches at the edge of enterprise networks to core computing services in the cloud.

Its global Virtual Edge now consists of 62 nodes, providing users almost anywhere in the world with a fast, cost-effective way of connecting to the cloud using software defined wide area network (SD-WAN) technology.

“ActivePort offers some unique service orchestration capabilities in the software defined wide area network (SD-WAN) market, a market that I believe is one of the fastest growing in the IT industry today,” commented Karim Nejaim, CEO of ActivePort.


Robust growth

SD-WAN is revolutionising data communications, making networks easier to connect and cheaper to operate.

ActivePort is at the forefront of this revolution with a stated goal to “connect the world and make it simple.”

The company runs a high-margin revenue business by licensing its software to telecommunications carriers, internet service providers (ISP), and IT managed service providers.

These clients use ActivePort’s software to offer more cost effective network solutions to their own small, medium and enterprise-scale business customers.

ActivePort is currently installing its software at four large telecommunications companies in four countries, with six more planned for FY22.

The company has signed deals with three strategic partners – Australian-based companies  Vizstone and Starboard, and also PCCW Global.

The collaboration with Console Connect by PCCW Global enables ActivePort to extend the availability of its SD-WAN 2.0 solution to more businesses worldwide using the power of Software Defined Interconnection.

The IPO funds raised will be used to support this very global growth the company is currently experiencing.

CEO Karim Nejaim told Stockhead earlier that it has hit a sweet spot in the MSP (managed services provider) market in Australia.

“Similar to the response from international telecommunications companies, the interest in our product from the Australian MSP market has been very strong – they have jumped at our Software Defined Networking capability,” Nejaim told Stockhead.

He said that out of the 150 or so Australian companies that ActivePort has been talking with, only one had declined a second meeting on pricing and proof of concept.

As a result, the company has begun to expand its Australian sales team since July this year, with the appointment of a new chief sales officer in Sydney.

This newly formed team is now delivering results with a 100% uplift in customers in the June and September quarters, and a 162% increase in annualised revenue so far in FY22 compared to FY21.

ActivePort’s revenue from its general MSP business is also tracking significantly higher, up 65% on the previous corresponding period and 8.7% on the previous quarter.

The result was in-line with the group’s 35% compound growth (CAGR) expectation for that division in FY22.

With the ASX listing, Nejaim believes that ActivePort is now ready to scale up and go to the next level.

“I  joined ActivePort in the second half of 2020, after a 20-year career at Optus and Telstra, and since then have built a fantastic team of highly skilled professionals that are carrying the company forward both locally and globally,” he said.

“A listing on the ASX is an important milestone, because it allows us to fund expansion and keep up with the amazing software sales growth we are experiencing with telcos, ISPs, and MSPs at home and around the world.”

This article was developed in collaboration with ActivePort, 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.