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Plexure signs second $1m contract to push revenue over $10m goal

The software-as-a-service company's latest deal is with an unnamed client.

Paul McBeth
Thu, 05 Jan 2017

Plexure Group [NZX:PLX] says it has passed $10 million in annualised committed monthly revenue (ACMR) after signing a new $1 million contract with an undisclosed client.

The company had been targeting $10 million in ACMR – a favoured revenue measure for software-as-a-service companies – by the end of calendar 2016, and announced a new $1.1 million contract with Arcos Dorados, the biggest McDonald's franchisee in Latin America and the Caribbean, on Deember 30.

Today, Plexure said it had signed another material contract, worth about $1 million, after the market closed on December 30. With those two contracts and expansion from existing customers, ACMR is now at $10.1 million, it says in a statement to the NZX.

"Plexure is at this time unable to announce details of the new contract as they remain confidential and commercially sensitive," the company says.

"Further particulars will be announced to the market when the final terms and conditions have been agreed."

ACMR "can increase or decrease in any given month due to a number of factors," including foreign exchange movements and customers adding or removing services on a monthly basis, Plexure says.

"The company's directors remain confident about the growth opportunities for the business in 2017 and thank shareholders for their ongoing support." 

The shares rose 3.1% to 33c. 

Stock market operator NZX is "assessing" Plexure's recent trading after the stock soared 26% on December 29, a day before it announced the Arcos Dorados deal.

The shares rose 33% to 32c when Plexure announced the deal on the final trading day of 2016. The stock had sunk to a record low 19c on December 22.

Paul McBeth
Thu, 05 Jan 2017
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Plexure signs second $1m contract to push revenue over $10m goal