Demand for AppsVillage products and services increases
AppsVillage Australia Ltd (ASX:APV), a SaaS solutions provider for small and medium businesses (SMBs), has provided a promising financial and operational update following a strong March quarter.
During this period, the company delivered higher than expected revenue results, exceeding previous guidance provided just over a month ago.
AppsVillage delivered monthly recurring revenues of more than $150,000 and annualised recurring revenues of approximately $1.8 million, representing an increase of about 250% compared with the previous corresponding quarter, and a 36% increase on the December quarter.
AppsVillage provides an easy and inexpensive SAAS solution that allows small-to-medium businesses to create and manage their own mobile application as a means of connecting with their customers and growing their business.
AppsVillage’s technology has automated the design, development, maintenance and marketing of mobile apps, allowing any business to build, preview and launch their own application without the need for code writing or digital marketing knowledge.
The robust performance in the March quarter represents a continuation of consistent growth in monthly and annual recurring revenue as can be seen below.
Targeting higher margin areas
AppsVillage also delivered 7,840 paying SMBs during the quarter, an increase of more than 250% compared to the first quarter of 2019 and a 22% increase on the December quarter.
These record results were delivered following the implementation of an aggressive and targeted strategy to scale and acquire new customers in high margin geographies such as the US, Australia and the UK.
These results have been delivered despite the outbreak of COVID-19, demonstrating the company’s ability to deliver strong and continuous organic customer and revenue growth in the current uncertain environment.
Management remains confident in its ability to continue to deliver financial and operational growth throughout this year and as a result has projected annual recurring revenues of $4.0 million by the end of 2020.
Underlining the increasing demand for the group’s products in light of the coronavirus, founder and chief executive Max Bluvband said, ”The COVID-19 outbreak is having an unprecedented impact globally.
‘’These are challenging times for all humanity and particularly for small businesses.
‘’Our platform is proving to be essential to SMBs continuous operation and sustainability and our financial results reflect that.”