AppsVillage continues strong revenue growth fuelled by mounting interest in app development
Monthly recurring revenues for the December 2019 quarter are expected to be up over 50% on the prior quarter.
SaaS solutions provider AppsVillage Australia (ASX: APV) has published updated revenue guidance with the company declaring that its commercial growth is set to exceed expectations this quarter.
The news validates the company’s own prediction made last month after it reported record results and rapidly growing revenues on the back of strong interest in app development from small businesses.
As a company, AppsVillage allows small and medium businesses to create and manage their own mobile applications in order to better engage with their customers and to roll out service features made possibly by smartphone connectivity.
Its technology has automated the design, development, maintenance and marketing of mobile apps, allowing any business to build and launch their own application without professional coding experience or digital marketing knowledge.
One of the most attractive features of its offering is cost-effectiveness.
AppsVillage gives businesses full access to its platform for around $25-50 per month which means they can forego the thousands of dollars typically required to develop a smartphone app if obtained from professional developers.
Another string to its bow is ongoing development of micro-financing software that can allow small businesses to raise capital, thereby reducing dependence on banks and financial intermediaries.
Last week, AppsVillage commenced the pilot phase of its micro-finance funding offering in the US, following the signing of partnership agreements with Seek Capital and Fundomate.
AppsVillage said it is now rolling out micro-finance products valued between US$5,000 and $50,000 in a limited number of locations and small businesses across the US.
In total, the pilot phase is expected to last eight weeks and once complete, AppsVillage plans to launch its micro-finance offering to its existing customer base while hopeful of expanding its SME-market footprint.
Strong revenue growth
In a regulatory filing, AppsVillage said it has experienced an acceleration in growth so far in Q4 this year with monthly recurring revenue expected to reach $105,000 at the end of December – an increase of over 50% from the prior quarter and a trebling of its performance compared to December last year.
On an annual basis, AppsVillage estimates it will reach $1.26 million in recurring revenues compared to around $400,000 this time last year.
Regarding its customer base, AppsVillage reported that it expects to deliver a growth rate of at least 45% in terms of paying customers which would mean it exceeded its previous forecast made in November this year by over 40%.
In total, the SaaS solutions provider expects to attain 6,000 paying customers in December, up from 1,685 in January – a growth rate of 256%.
The significant improvement in growth is encouraging going into 2020 and has been delivered faster than expected following the roll-out of AppsVillage’s expansion into emerging markets such as India, Malaysia, Philippines and multiple countries within Africa, the company said.
This morning’s revenue guidance boosted AppsVillage shares by over 78% to $0.34.