Expansive software development beckons for Syntonic

Software developer Syntonic (ASX: SYT) has expanded its long-standing relationship with Tata Communications and hopes to amplify its ability to generate e-commerce opportunities as a result.

Syntonic has developed a proprietary product called the Tata Sponsored Data Exchange (Tata SDX), comprising of its Syntonic Connected Services Platform (CSP) and its Freeway Software Development Kit (Freeway SDK).

The Tata SDX is the basis for Syntonic and Tata to further entrench their existing agreement by adding further layers of co-operation, to transform how consumers and businesses access applications and content across the mobile internet.

The two parties have agreed to extend their partnership with Syntonic granting Tata a “worldwide, non-exclusive, limited 3-year license” to use additional Syntonic application program interfaces, commonly known as API’s.

The level of bespoke customisation offered by API integration is expected to broaden and extend the capabilities of Tata SDX and to deliver better outcomes for its users.

Syntonic and Tata have also agreed on a revenue-share split for all business generated using the Syntonic licensed technologies in the Tata SDX.

According to Syntonic, by broadening its relationship Syntonic empowers Tata to deploy its Sponsored Data Exchange (SDX) with global telecommunications carriers and expand its commercial footprint.

The extended partnership underpins continued growth in Syntonic’s installed user base, creates additional future revenue streams and is expected to add significant value to Syntonic’s overarching business model.

Syntonic’s flagship products

Syntonic’s Freeway product provides consumers with unlimited mobile access to content and applications, supported by subscription and sponsorship.

In parallel, Syntonic’s DataFlex product enables businesses to manage split billing expenses for employees when using their personal mobile phones for work purposes.

The two products empower Syntonic to commercialise both the retail consumer and business sectors.

Recent results

As far as recent performance goes, Syntonic has beat analyst expectations by recording a 43% increase in quarter-on-quarter profit and an impressive 2,450% year-on-year increase in quarterly cash receipts.

In the first half of this financial year, Syntonic says it recorded a 502% increase in revenues which it hopes to escalate even further courtesy of the expanded agreement with Tata.

More broadly, Syntonic’s Freeway user base increased to 25.3 million, representing a 26% quarter-on-quarter growth rate and helping Syntonic to scoop two prestigious awards in recent months. Syntoinc won Best Mobile App Gold Award and the Mobile Star Award for the best mobile app last year.

At the present time, Syntonic is focusing on five territories where it thinks there is best opportunity to extend its already strong growth rate: China, Vietnam, Turkey, sub-Saharan Africa and Mexico.

“We expect this new agreement to have a significant positive influence on Syntonic’s business by hastening the deployment of our branded product, Freeway, in new geographies, increasing our platform revenue with broad Tata SDX deployment and usage, and lowering Freeway’s costs of carrier acquisition, hosting and integration,” said Gary Greenbaum, CEO and Managing Director of Syntonic.

“As Tata rolls out its SDX globally, we see solid opportunities to leverage Tata’s reach, introducing Freeway to new markets, and amplifying growth in Syntonic’s installed base growth,” he added.