Adveritas continues ‘rapid’ growth in annualised recurring revenue
Adveritas chief executive officer Mat Ratty says the company is “well placed” to continue its rapid ARR growth.
Adveritas’ (ASX: AV1) annualised recurring revenue (ARR) continued to “rapidly grow” during the September quarter (Q1 FY2023), closing out the period 88% higher at $3 million compared to the previous corresponding period.
Cash receipts also rose to $593,000 – up 40% on Q1 FY2022 levels.
Adveritas co-founder and chief executive officer Mat Ratty said the company’s rapidly growing ARR was a “key highlight” this year.
He said underpinning the growth was a refreshed global sales and marketing team, along with its “quality suite of TrafficGuard digital anti-fraud software products” that provide clients with a “measurable and significant return on investment”.
RavenTrack partnership
A recent key milestone for Adveritas is its new partnership with RavenTrack.
According to Adveritas, RavenTrack is a leading online gaming affiliate tracking platform.
Under the partnership, TrafficGuard was integrated with RavenTrack’s platform.
Mr Ratty said the integration had generated “several new opportunities” over the September quarter.
“We feel that both businesses naturally align through our product offerings and services to prevent ad fraud and reduce invalid traffic for brands,” he added.
Blue-chip clients
In addition to the RavenTrack partnership, Adveritas onboarded several blue-chip clients during the period including Better Collective, Lux Escapes and Disney Streaming Services.
The new clients are using TrafficGuard’s digital anti-fraud software.
“Adveritas’ Freemium TrafficGuard product is a growing source of lead generation, providing companies with an insight into the benefits they can generate from TrafficGuard’s technology and prompts them to upgrade to paying customers,” Mr Ratty noted.
In progressing its product suite, Adveritas is revising commercial packages with features that unlock as users increase their package tier.
These commercial packages are expected to be launched in the current quarter.
Channel partnerships
Also, during Q1 FY2023, Adveritas continued to build its channel partnerships with major global organisations including Google Cloud Marketplace and Meta’s Facebook.
This is part of Adveritas’ go-to-market strategy, which continues to generate cross and up-selling opportunities across its TrafficGuard suite.
“With sales from Google Cloud Marketplace, the revenue potential from our self-serve product across Google PPC and Meta’s Facebook, new channels like RavenTrack quickly getting traction, and continued success in engaging global companies such as Disney Streaming Services, we are well placed to continue rapidly scaling,” Mr Ratty said.
Further growth expected
To continue its growth momentum, Adveritas raised $3 million via a placement earlier this month.
This built the company’s cash reserves to about $6 million.
“We are well placed to continue our rapid growth and protect brands’ marketing efforts through preventing digital ad fraud and reducing invalid traffic,” Mr Ratty said.
Rich List investors
Backing Adveritas in its growth are Financial Review Rich List investors (formerly known as the BRW Rich List).
On the rich list is Mark McConnell, which is also Adveritas’ largest shareholder with an almost 16% stake in FY2022.
Mr McConnell said he is attracted to Adveritas due to its “large addressable market”, high ARR growth, unicorn and corporate clients.
He previously founded and privatised Citadel Group and remains with the group as chief executive officer.
Mr McConnell is experienced in business strategy, investor relations, capital raising and innovation.
Additionally, Canberra Airport owners via the Capital Property Corporation have been scooping up Adveritas shares on-market since May.