Vonex delivers all-time record sales in May
Telecommunications innovator and fast-growing service provider Vonex Ltd (ASX:VN8) continues to deliver strong growth in its retail business, exceeding a record 29,000 registered Private Branch Exchange (PBX) users as at June 4, 2019.
As a backdrop, Vonex is a full service, award-winning telecommunications service provider selling mobile, internet, traditional fixed lines, and hosted PBX and VoIP services - predominantly to the small to medium enterprise (SME) customer under the Vonex brand.
Management’s targeted nationwide marketing program and constructive engagement with its network of channel partners are having a positive effect on business activity, with May 2019 being the most productive sales month in Vonex’s history.
This outreach is also driving consistent growth in Vonex’s active user base, which at 29,000 users has grown by 24% in the last 12 months.
PBX registrations are a key indicator of business development progress as Vonex penetrates the multibillion-dollar Australian market for telco services to small and medium enterprises (SMEs).
These factors are driving sustainable expansion in new customer activity, and Vonex is on track to deliver 25% year-on-year growth in new customer orders in the June quarter.
This is an outstanding performance given that it builds on the 20% growth rate achieved in the March quarter.
NBN to provide additional momentum
In order to assist Vonex in maintaining this impressive growth trajectory, management has recently appointed Terry Tangredi as Head of Sales.
He brings more than 25 years of senior management experience in IT, telecommunications and telematics, with expertise in the areas of organisational performance, strategy and leadership.
Vonex expects to continue to grow its PBX user base as the company steps up its focused marketing to SME customers.
Management is targeting the NBN rollout in Australia’s capital cities as its campaign develops, which should drive website traffic growth and yield new customer leads online and through channel partners across the country.
Channel partners drive exponential growth
A critical element of Vonex’s rapid and consistent growth in PBX users is sales through channel partners, a productive network of hundreds of qualified sales partners who collaborate with Vonex.
Typically, IT business and managed service providers and channel partners connect Vonex with SME customers in all major Australian cities and accelerate the company’s growth by selling Vonex’s proprietary technologies, including its cloud-based PBX and Vonex-branded traditional mobile, internet and business phone plans.
In the financial year to date, Vonex has recruited 72 new channel partners.
Management continues to sign up and onboard new channel partners sourced through inbound enquiries and targeted marketing to the IT and communications managed services provider community.
With national marketing in capital cities underway, the company’s focus continues to be on the recruitment of new channel partners across Australia to support the anticipated growth driven by the NBN rollout.
Vonex expects to attract more high-performing channel partners as it continues to display the value of its Channel Partner focused sales software, Sign On Glass.
This software has now processed 900 orders to a mixture of new and existing customers, making customer onboarding efficient and ensuring new customers become active sooner.
Short-term positions in small, early stage ASX companies,
with high potential and near term price catalysts.
Focusing on resource exploration, early-stage tech, and biotech.
Exceptional opportunities across a broad range of
early-stage growth sectors with strong management.
Seeking 1,000% plus returns across medium to long-term holds.
Longer-term positions in a variety of sectors.
Seeking strong management where traction is established and have entered into a growth phase.
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.
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.