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.”
Where to invest $1,000 right now
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
Publishers Notice
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.
