Plexure inks second $1M contract at end of 2016, pushing ACMR over $10M goal

Wednesday 4th January 2017

Plexure Group, the digital advertising firm formerly known as VMob, 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 Inc, the biggest McDonald's franchisee in Latin America and the Caribbean, on Dec. 30. Today, Plexure said it had signed another material contract, worth about $1 million, after the market closed on Dec. 30. With those two contracts and expansion from existing customers, ACMR is now at $10.1 million, it said 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 said. "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 said.

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

The shares rose 3.1 percent to 33 cents.

Stock market operator NZX is currently "assessing" Plexure's recent trading after the stock soared 26 percent on Dec. 29, a day before it announced the Arcos Dorados deal. The shares rose 33 percent to 32 cents when Plexure announced the deal on the final trading day of 2016. The stock had sunk to a record low 19 cents on Dec. 22.

BusinessDesk.co.nz

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