By Gavin Evans
July 3 (BusinessDesk) - Workforce management software company Geo says licence sales rose in the June quarter on the back of new features added to its core product in the period.
The software-as-a-service provider trimmed its guidance in May citing slower sales and deferred marketing due to delays releasing the new features for its Geo product.
Sydney-based Geo said the new product release saw about 250 new licences sold in June.
“All new features have now been delivered and are live in market, with sales momentum increasing,” the company said in a statement to NZX. “A further 500 - 1,000 Geo licences are expected to be sold during July and August.”
Earlier this year, Geo had been aiming to break-even at an operating level mid-2019, on the back of 25-30 percent revenue growth in the year ended June 30. In May it revised that, saying total full-year revenue growth was likely to be 20 percent, while growth in annual recurring subscription revenue was expected to be 21-23 percent.
Today, the company said it will report a 21 percent increase in recurring subscription revenue for the year.
It said the repricing of its Geo product is complete, with average monthly revenue per user up to more than $17 at the end of the year, from $7.70 a year earlier. It estimates it had about 17,250 licences at June 30, down from the 18,736 it reported at Dec. 31.
Geo said the increased pricing was the main driver of revenue growth, but a “significant” investment in customer service is also helping the firm retain customers for longer. Both measures have increased the value of its customer book, it said.
The company’s shares last traded at 8.5 cents, and are down about 43 percent so far this year.
Geo said it has about $1 million of cash on hand and expects to receive a further $500,000 in research and development grants shortly.
It plans to update investors on its cash reserves, burn rate and profitability – based on its July and August trading – when it formally reports its full-year result on Aug. 23.