Technology provider AD1 Holdings (ASX: AD1) has reported a new record in sales performance from its wholly-owned subsidiary Art of Mentoring, which achieved a 94% revenue rise in the September quarter.
AD1 has attributed the increase to two new contracts secured last month worth more than $100,000 each, together with strong renewals and upsells of existing deals.
As a result, Art of Mentoring’s quarterly revenue is 2.3 times higher than the same period last year and smashed through its previous revenue record set in the June quarter by 94%.
“Art of Mentoring finished the quarter even more strongly than anticipated,” AD1 chief executive officer Brendan Kavenagh said.
“The market for mentoring program management software is exploding and customers love the Art of Mentoring product and stellar service. It is little wonder we are seeing such outstanding performance,” he added.
Art of Mentoring sales momentum continues
AD1’s acquisition of its Art of Mentoring business a year ago changed the company significantly by adding $1 million to its revenue and expanding its software-as-a-service (SaaS) footprint. The group recorded 65% year-on-year growth in revenue for ordinary activities in the 2021 financial year as a result.
In the first two months of this financial year, Art of Mentoring signed six new clients valued at $160,000 for the year alone. The lifetime value of the contracts is expected to exceed $600,000.
Last month, it secured two additional two contracts worth more than $100,000 each. The first is a 12-month deal to provide a wellbeing program to Australia’s Department of Defence. It’s the third contract that Art of Mentoring holds with the government agency.
The second deal, signed in late September, is with North America-based human relations network HR.com and marks the beginning of Art of Mentoring’s expansion outside of Australia.
These new contracts add to the enormous growth Art of Mentoring has achieved in global clients in the last 12 months.
AD1 said online training subscription sales are also growing at the same rate, with more international clients in the government, corporate and association sectors.