Perth-listed Connected IO has posted a staggering 363 per cent lift in revenue in calendar year 2017 to $2.44m after a better-than-expected December quarter. The “internet of things” upstart company expects further growth in 2018 and says it has already secured a strong pipeline of new purchase orders worth more than $2 million for 2018.
ASX listed Internet of things company Connected IO has outperformed its 2017 revenue expectations, lifting top-line growth by a staggering 363 per cent over the 2016 calendar year result.
The company’s modem like devices that provide an operator with the ability to control and monitor machines and other things via the internet appear to have hit a sweet spot in the market.
Their uses appear to be varied and almost unlimited with Police forces using them to record Police Officer lapel vision, Coca Cola using them to determine if their vending machines have run out or product and local councils using them to record CCV vision to name just a few.
In the recent market update, Connected IO said the revenue revision was due to a better-than-expected December quarter after originally announcing an expected 340 per cent revenue surge for 2017 last month.
Revenues for the 2017 calendar year reached $2.44m for the young and growing wireless technology tyro.
In the update, Connected IO said it expected even higher percentage growth across 2018 with confirmed purchase orders already exceeding $2 million on the back of a strong pipeline of anticipated contracts.
Further positive developments, according to Connected IO, include five purchase orders currently being negotiated and the pending finalisation of an expanded partnership with an as yet unnamed US based cyber security company.
According to Connected IO management, the deal with the US based cyber security company, if locked down, could result in a multi-year relationship that would enable the company to significantly grow its profit margins by offering new premium managed services with higher price points.
Once finalised, the deal is anticipated to deliver recurring revenue of approximately 10-15 per cent of the company’s total revenue in 2018,.
“These opportunities have been developed throughout 2017 and have taken some time to bring to the market. However the company has confidence that these and other new opportunities will be developed and confirmed to the market soon.”
Additionally, Connected IO said it was also in discussions with the world’s largest franchise business which was currently evaluating the company’s wireless technology solutions for its corporate and franchise stores.
Connected IO’s push into the Internet of Things sector is based on its proprietary wireless products, such as its increasingly popular Cat-1 modem like device, for cellular connectivity and machine-to-machine communication.
Connected IO’s aim is to cash in on the accelerating desire of millions of consumers across the globe to hook up everyday devices to the internet as part of the burgeoning multi-trillion dollar internet of things sector.
It has established strong ties with US telcos AT&T and Verizon and counts the likes of Mach Networks, US electronics behemoth Arrow, LG, Coca-Cola, The Red Cross and Cisco as clients.