Record growth for digital bodyguard Adveritas as major global clients sign up
Adveritas’ digital ad prevention TrafficGuard continues to deliver record sales and attract global clients.
Aussie digital ad-fraud bodyguard Adveritas (ASX:AV1) has continued its record growth in Q2 of FY22, delivering an annualised revenue of over $1.7m as at 31 December 2021.
Post the quarter end, this annualised revenue has further increased to around $1.85 million as sales picked up hotly across January.
For the first half of FY22, the company’s flagship TrafficGuard recorded revenue of $960k, up 108% from H1 FY21. Cash receipts gained from sales increased by 113% to a record $1.073m.
The company’s focus and execution of its growth strategy has seen sales increase by 80% since the end of the last financial year.
This follows significant investment into sales initiatives, as well as the company’s ability to convert a record trial pipeline into paying customers.
“Our growth momentum continues to build in FY22 with the launch of TrafficGuard on the Google Cloud Marketplace,” said CEO Mat Ratty, commenting on his company’s rapid growth.
“Further enterprise client wins and strong renewal rates from existing clients have left us in an excellent position to scale out TrafficGuard,” he added.
Adveritas continues to rapidly grow its Freemium subscribers, a strong leading indicator of future revenue growth.
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.
This data set could potentially enhance the value of the company’s proprietary anti-fraud database.
Over Q2 FY22, Adveritas’ Freemium subscribers increased by approximately 20% to over 3,140, providing a large base of users that could convert into paying customers.
Digital advertising is a huge industry, but how much of that is wasted to fraud?
Latest estimates show digital ad fraud is costing advertisers and brands $44 billion, which is set to increase even further to $100 billion by 2023.
Fraudsters game the system by creating malicious ad selection algorithms that select fake web pages over legitimate websites, and charge advertisers a premium for the ‘service’.
Adveritas’ TrafficGuard prevents and targets invalid traffic before it reaches a client’s ad budget.
By having a software like TrafficGuard in place, it will make the business of ad fraud infeasible for fraudsters, or simply put, you don’t rob a bank when there is no money in the vault.
The company has kicked off 2022 with huge wins with a number of major global new clients, validating TrafficGuard’s world-class technology.
Contracts were executed with various organisations across telecommunications, legal and retail industries during the quarter, with clients like William Hill and MyRepublic signing up post quarter end.
“We are successfully rolling out our enterprise strategy through our direct sales force, attracting market leading clients across our key target verticals,” Ratty said.
“Several multi-billion dollar unicorns and a strong amount of mid level clients are currently trialling TrafficGuard, which if converted would support a continued rapid scale up of our annualised revenue.”
In 2021 Ratty spent time sourcing the best of breed in sales and marketing and has added global chief revenue officer, Matt Sutton who has led the shaping of the sales force. Ratty also expects the appointment of Chad Kinlay as Chief Marketing Officer in January will help scale enterprise meetings for the company’s direct sales force even further in 2022.
Needless to say Ratty is deploying his efforts to hire quality people to drive this expansion
During Q2 FY22, Adveritas raised a total of $5 million, $3.6 million of which resulted from the exercise of 36 million listed options (AV1O), and $1.4 million through a placement of 14 million shares.
The fresh funds have significantly strengthened Adveritas’ capital position, bolstering its balance sheet that comprises $6.4 million of cash as at 31 December 2021, and no debt.
The funds are expected to directly grow sales, allowing the company to further expand its sales pipeline across key verticals and deliver further enterprise contract wins.
With Ratty’s deputy Matt Sutton (global CRO) leading the sales force the company is confident of rapid growth to come in 2022.
Adveritas will also use the funds to broaden its digital marketing footprint, and to hire additional sales representatives across Asia and Europe.
“With a record sales pipeline and an increasing number of enterprise trials, we expect to see high conversion rates in the months ahead,” says Ratty.
“Our recent reshaping of our sales team across Asia and Europe will also underpin expansion into new verticals and continued global growth.”