VMob postpones ASX listing despite sales growth

NZAX-listed VMob has delayed a planned listing on the ASX due to “significant momentum” and “ongoing commercial negotiations.”

VMob is a mobile personalisation platform that delivers location-based marketing promo offers to smartphones for big brands.

In an announcement, the company said it will update the market when the board has confirmed the timing of the ASX listing. The company had previously hoped to list on the ASX by the end of last year.

Asked for further comment, VMob chief executive Scott Bradley says the negotiations refer to “the significant pipeline of new commercial opportunities we have working with the Microsoft sellers.”

Last week he told NBR ONLINE the ASX listing will have to come after the company rolls out its product in McDonald’s US stores later this year.

VMob’s platform is being used by the fast food chain in South Korea, Japan and Sweden. After the US rollout, Mr Bradley says VMob will be present in about half of McDonald’s stores worldwide.

The listed company also counts 7-Eleven Australia and IKEA Sweden among its customers.

Sales increasing
In the same announcement, VMob said its annualised committed monthly revenue (ACMR) was $4.5 million as at July 31, a 41% increase on the $3.2 million reported in March.

AMCR is the value of recurring portion of subscription revenue for software as a service companies.

VMob says its platform has been deployed to customers, to which the ACMR refers, but not all have their mobile apps in the market.

The company reported a loss of $4.39 million on $2.94 million revenue for the year ended March 31, 2015. Mr Bradley says company aims to reach profitability in 18 months’ time.

VMob collects data from the Microsoft Azure cloud platform and Mr Bradley says it now processes 10,000 transactions per second. He says VMob adds value to Azure and helps Microsoft shore up its customers as a de facto product.

But Mr Bradley says the product can migrate to other cloud providers, such as Amazon.

The company employs 65 people globally, up from 20 people at the same time last year.

VMob is still in negotiations with the Financial Markets Authority around its market disclosure.