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VMob widens loss but doubles revenue

NZ NewswireNZ Newswire 29/05/2016 Sophie Boot

VMob, the mobile advertising firm which joined the NZX main board in January, widened its annual loss while investing in building a presence in the US market and in the development of its technology platform.

The net loss was $6.6 million in the 12 months ended March 31, from $4.4m a year earlier, the San Francisco-headquartered company said in a statement. Revenue more than doubled to $6.6m from $2.9m in 2015.

Annualised committed monthly revenue (ACMR) rose 70 per cent to $5.4m.

In April, the company affirmed guidance for ACMR of $10m within six-to-nine months and said it expects to reach that target by the end of September.

ACMR soared more than 1,000 per cent to $4.8m in VMob's first half, when it reported a net loss of $3.2m.

VMob said it expects to raise more capital in the second half of 2016, possibly including a US-based strategic shareholder.

The company raised $8.5m in the last financial year and is currently raising up to $4m in a private placement.

Major international clients including McDonald's, IKEA, Anheuser-Busch and 7-Eleven Australia will underpin revenue growth in the year ahead, VMob said, and the company has added sales staff in the US.

VMob's technology platform delivers personalised, location-based promotional offers to mobile phone users on behalf of major brands to increase sales.

In January, founder Scott Bradley said funds raised from an earlier $5m placement would last the company through to mid-year with its cash burn hovering between $600,000 and $700,000 a month.

VMob had $2.6m cash and equivalents as of March 31, from $1.9m a year earlier, and said it was focused on cost management and wants to grow sales without increasing operating burn.

The shares last traded at 38 cents and have dropped 14 per cent this year.

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