Plexure surges into profit after record revenue growth
Mobile engagement software company Plexure has reported its first profit, following a record period of revenue growth. Revenue increased by 51% for the first half of FY19, giving a net profit of $1.1 million. This represents a 658% turnaround on its $0.2 million loss for the same period last year.
Chief Executive Craig Herbison said the $8.1 million revenue and continued cost control gives the company $6.1 million in the bank. This, along with its positive cash flow, will allow Plexure to invest further in scaling its platform and addressing the significant growth opportunity across its global markets.
“Moving into profit is an important milestone on our journey, reflecting a successful rebuilding and refocusing of the business to generate the resources we need to fund further growth and expansion,” said Mr Herbison.
“Our global footprint continues to grow with more than 86 million users on our platform across more than 40 countries,” he said.
Summary of Financial Performance
6 Months Sept 30 2018 6 Months Sept 30
2017 Change Change $’000s $’000s $’000s % Total
revenue 8,108 5,360 2,748 51 Operating
revenue 8,075 5,168 2,907 56 Net profit / (loss) after
tax 1,088 (195) 1,283 658 Cash at
bank 6,141 2,372 3,769 159 Staff
(FTE’s) 37 33 4 12
First half highlights
Mr Herbison said that consumers in 20 new countries were now using Plexure’s platform as a result of growth in the first half of the year.
“Plexure now has more than 58 million users on its platform in Asia, and has grown revenue in this region by 38% over the same period last year,” he said.
In Europe, more than 21 million customers were using Plexure’s platform, a 723% increase over the previous 12 months.
“We are setting up an office in Europe to support the growth in that region,” said Mr Herbison.
Plexure’s Loyalty platform has been rolled out across three countries in Europe over the last 6 months and is already attracting around half a million users.
The company has boosted its sales capability in the US and is poised for growth in that market, not only in app[KR1] -based engagement, based on market demand. It has also begun developing AI-driven engagement tools based on customer demand.
Outlook for full year
The company is now investing for future growth in its platform to provide coverage for an increasing number of users. Investment in the Plexure platform and product roadmap would include strengthening the engineering team to expand development capability in the coming months, Mr Herbison said.
Plexure is a mobile engagement software company. Global brands use the Company’s products to engage consumers on mobile devices and drive them to store with personalised offers, mobile order and pay and loyalty. Plexure’s software integrates with operational systems to remove friction and create a seamless purchase experience for consumers.
Plexure makes the sales process for physical retailers seamless, engaging and profitable by identifying where customers are, what they want and then facilitating their purchases.
The Company’s technology platform and product offering covers five key capabilities:
• Mobile order and pay
• Next generation loyalty programmes
• Personalised offers
• Seamless operations integration
Brands that use Plexure see an increase in customer numbers and visit frequency, higher average transaction values, larger share of wallet and improved customer satisfaction scores.
The Company now has 86 million end users on its platform in over 40 countries.
Plexure has offices in Auckland, Chicago, Atlanta, Tokyo and Copenhagen. Clients include McDonald’s, 7-Eleven, Ikea, and Loyalty New Zealand.