AD1 Holdings’ subsidiary AoM makes ‘record-breaking’ start to FY2023
AD1 Holdings’ (ASX: AD1) expansion efforts in the United States are already paying off, with subsidiary Art of Mentoring (AoM) making a “record-breaking” start to FY2023 with “unprecedented” new business sales.
Since the start of FY2023 (1 July 2022), AoM has onboarded eight new customers with a total contract value of around $290,000. These include key not-for-profit organisations Social Futures and She Raises Africa, along with a major US defence contract.
Using an historical customer retention rate of four years, AD1 estimates the contracts have a lifetime value (LTV) of more than $1.6 million.
Additionally, existing customers renewed agreements with AoM since the start of FY2023, which have an LTV of about $2.56 million.
Compared to this time last year, AoM’s sales pipeline in the US has grown more than 700% to reach $3.2 million in LTV.
AD1 chief executive officer Brendan Kavenagh said AoM had delivered a “strong performance” since the start of FY2023 – underpinned by new customer wins and key contract renewals with existing customers.
“This has created great momentum throughout AoM and the AD1 group and we are thrilled to keep this momentum going as we move forward into FY2023.”
Continued growth expected
As FY2023 advances, AoM will continue to pursue its US expansion by leveraging existing relationships to secure new customers.
Additionally, AoM will continue its marketing activities in the US and seize opportunities to up-sell to existing customers.
AoM has also hired a senior account representative and client success manager to facilitate these strategies.
“ is confident it is well positioned to accelerate sales growth within the US market in the final months of 2022 and beyond,” Mr Kavenagh said.
To steer the US expansion, AoM chief executive officer and co-founder Alex Richardson relocated to Texas in August.
During the September quarter, AoM had its first North American contract win with US tech giant Intel.
This contract alone had an LTV of $150,000.
In addition to AoM, AD1’s other divisions include ApplyDirect, Jobtale and Utility Software Services.