OpenDNA posts strong growth in cash receipts for third consecutive quarter
OpenDNA has reported a more than 350% growth in customer cash receipts for the June quarter with sights set on further expansion in China and Australia.
Artificial intelligence (AI) and e-commerce marketer OpenDNA (ASX: OPN) has more than quadrupled its customer cash receipts for the third quarter in a row as it pushes on with expansion plans in Australia and China.
Utilising AI and machine learning technology, the digital analytics company provides real-time, targeted marketing to help businesses better promote products to consumers based on their profiles and online behaviours.
Over the past few months, OpenDNA has been busy extending its capabilities and expanding its online footprint with several inked deals and the acquisition of digital marketing company Blackglass.
Now, its expansion plans appear to be paying off with the company reporting customer-generated cash receipts totalling $763,000 for the June quarter, up 354% on March quarter receipts of $168,000.
OpenDNA has achieved its third consecutive quarter of +300% growth in cash receipts.
Net cash from operating activities was reported as a loss of $694,000, although this is narrowed from the $850,000 net loss in March.
Net operating loss for the full financial year totalled $2.5 million, with more than a quarter of operating expenses attributed to product manufacturing and operating costs, and another 20% going on research and development.
This is a considerable improvement from the previous financial year, which recorded a loss in net cash from operating activities of $3.09 million.
In addition, the company closed out the 2019 tax year with $2.1 million in cash, thanks to a $2 million oversubscribed share placement completed in April. This is compared to the $669,000 the company held in cash by the end of June 2018.
Blackglass acquisition
During the June quarter, OpenDNA completed its acquisition of Sydney-based digital strategy and tactics company Blackglass from IncentiaPay (ASX: INP) for a consideration of $300,000.
OpenDNA considered this a strategic move to drive immediate additional future revenue from existing Blackglass clients, as well as open a larger customer base for the company’s AI platform.
The acquisition also expanded OpenDNA’s geographic footprint, with an established Sydney office now in addition to Perth, Singapore and China.
RooLife portal
OpenDNA launched its RooLife e-commerce marketplace in China and Australia, as well as inked a deal with Petrus Pharmaceutical to sell its health and wellbeing products exclusively in China.
Petrus’ products are currently sold through more than 5,000 Australian pharmacies and are expected to have strong market appeal in China through the RooLife portal, OpenDNA said.
The company also integrated Novatti Group’s (ASX: NOV) China Payments platform into its RooLife portal, extending its payment processing capabilities to service Chinese customers living in Australia as well as Chinese tourists, business travellers and students.
Novatti’s platform enables Chinese consumers to purchase products and services from WeChat and Alipay while in Australia and in Australian dollars.
In addition, it completed the integration of a new e-commerce AI recommendation engine, Daishu, with its RooLife platform.
According to OpenDNA, the engine is designed to optimise RooLife sales by making appropriate recommendations to online shoppers while also providing insights into consumer preferences and behaviours.
AI technology distribution
Also during the quarter, the company clinched a deal with Chinese high-tech agency Qingdao Edge Technology Company (QEdge) to sell and distribute OpenDNA’s AI and machine learning technology in China.
Targeting e-commerce applications, the technology works by tracking user interests in apps and web platforms and combining third party data to build psychographic maps of these interests.
Expansion plans
In its announcement today, OpenDNA said it aimed to continue building on its customer base in Australia and expand its digital services in China.
The company said it was seeking to develop key sales partnerships in the tourism and daigou markets, as well as student channels.
Other objectives include striking up partnerships in online and retails sales and assisting Australian businesses and brands to enter the China market.