Adveritas’ rising annualised recurring revenue highlights rapid growth
Adveritas founder and chief executive officer Mat Ratty says ARR has continued rising in FY2023 and that the growth momentum is expected to continue.
Adveritas (ASX: AV1) has revealed its results for the financial year ending 30 June (FY2022), which highlight rapid growth in the company’s annualised recurring revenue, which was up 145% from FY2021 to $2.51 million.
During FY2022, the Australia-based company experienced multiple major client wins, launched new go-to-market channels with Facebook and Google and accelerated cross/selling and the expansion of the company’s services to existing customers.
Adveritas’ TrafficGuard product is its first available software as a service (SaaS) offering – detecting, mitigating and reporting on ad fraud before it impacts digital advertising budgets using its patent-pending technology and proprietary big data.
Adveritas founder and chief executive officer Mat Ratty said as the brand grows and larger companies become accustomed to TrafficGuard, the company’s ARR will only continue to increase.
“The implementation of our growth strategy is delivering results with ARR currently up over 170% since 30 June 2021 and we don’t see growth slowing given our pipeline of potential new clients is the largest it’s ever been,” he said.
The company ended the financial year with a cash balance of $5 million, which will be added to after year end with a research and development grant of $1.1 million – further supporting its growth initiatives going forward.
Major client wins in FY2022
FY2022 for Adveritas was headlined by several major client wins across industries including gaming, telecommunications, retail and media and entertainment.
“Digital ad-fraud is a serious and ongoing problem for many companies and industries around the world,” Mr Ratty explained.
“The rise of interest in our technology from companies such as Banco Santander, William Hill, Singtel, and Disney Streaming Services, reflects the value we create through our software.”
“Our new channels and scaling of our technology platform means that we can further increase our services to help new and existing clients avoid fraudulent traffic, so they can maximise the return on their digital advertising.”
During the period, Adveritas took on board two bookmakers, Betfred, the largest private retail bookmaker in the UK, as well as UK-based William Hill, a leading global online bookmaker.
Adveritas’ cliental also grew with new clients such as Singtel, Asia’s leading communications group, also the parent company of Optus; and Fortuna Entertainment group, an omni-channel betting and gaming operator within parts of Europe.
Banco Santander, one of Spain’s main banking and financial services companies, was among another of the clients won over, as well as Smarkets, an award-winning, low commission betting company.
Finally, BoyleSports, a bookmaker based in Ireland with more than 320 retail branches in the UK and Ireland was secured by the Australia-based company.
TrafficGuard on the Google Cloud Marketplace
In October 2021, TrafficGuard integrated with the Google Cloud Marketplace platform, which enabled Google Cloud’s customers to make the most of TrafficGuard’s pay-per-click (PPC) product.
The company’s first sale of TrafficGuard through the marketplace platform took place in May 2022.
Currently, TrafficGuard is the only digital anti-fraud solution on the Google Cloud Marketplace, and as a result has opened additional global sales channels for the company.
As well as offering PPC verification, TrafficGuard offers its flagship mobile app install verification, which makes sure clients are not paying for misattributed or fake installs of apps, and affiliate verification, which reduces affiliate misattribution and ensures clients are paying for real conversions to their website.
More recently, TrafficGuard entered beta trials for PPC with Meta’s Facebook platform to help users reduce invalid and fraudulent advertising traffic, and has now started a new channel offering social verification for Meta.
Commercialisation has been planned for later this calendar year, with already a number of new and existing clients putting their hands up.
Looking forward to FY2023
Adveritas aims to continue its growth into FY2023, building on the past financial year, which saw its ARR continue expanding.
Post FY2022, new blue-chip clients including gaming business Better Collective, Lux Escapes, a global online travel company and Disney Streaming Services, have all signed contracts to use TrafficGuard’s anti-fraud software.
“While we’re only eight weeks into the new financial year, our ARR has continued to grow, and we expect to continue the growth trajectory given our new client wins, extensions and upgrades to existing clients, and a growing pipeline of opportunities,” Mr Ratty added.