Plexure's annualised revenue rises to $7.1M, mulls capital raise

Thursday 29th September 2016

Plexure Group, the digital advertising firm formerly known as VMob, has increased annualised committed monthly revenue (ACMR) by almost a third with a view to reaching $10 million mark by the end of the year, and is considering raising new capital.

Chairman Phil Norman told shareholders in Auckland the company's ACMR - a favoured revenue measure for software-as-a-service companies - rose to $7.1 million as at Sept. 28 from $5.4 million at the firm's March 31 balance date. Last month Plexure delayed its projection to reach $10 million of ACMR in the September quarter until the final three months of the calendar year, a target Norman affirmed today.

"The pace at which sales contracts progress through these teams can be frustratingly slow and, as a result, our sales revenues are lumpy and particularly hard to predict," Norman said in speech notes published on the NZX. "We don’t offer this as an excuse, rather by way of explanation."

Plexure rebranded in July to shift away from the idea it's solely focused on mobile devices and reflect its role it plays for global brands including McDonald's and Ikea.

Norman said that rebranding has been well-received in the US and Europe.

Plexure has slowed its monthly cash burn to $600,000 a month, and Norman said the company has enough funds to sustain working capital until the end of the year, but is looking at options to raise new capital.

"We are continuing to engage in discussions with prospective US-based strategic investors with the objective of bringing one on board as an investor before the end of the year," he said. "The board is also considering other capital raising options, including the potential for a share purchase plan (SPP) offer to existing shareholders."

The share rose 3.5 percent to 30 cents, having slumped 34 percent so far this year.

BusinessDesk.co.nz

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