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Vonex delivers record revenues

ASX listed telco upstart Vonex looks set to end the year with a bang after posting its strongest ever monthly customer billings of $741,000 in November, representing a year‐on‐year growth of more than 13%.

The financial boost is largely due to the market disruption caused by the continued rollout of the NBN in metropolitan areas, the start of Vonex’s online marketing campaign in all States and Territories and improved engagement with new and existing channel partners.

Notably, the company said the revenue number is overwhelmingly recurring in nature and will drive its operational cashflows in the December 2018 and March 2019 quarters.

Vonex is also continuing to enjoy success in growing its cloud based PBAX telephony business with the number of registered users rising by 26% year‐on‐year to 25,800.

The company expects to have more than 26,000 users by early next year as its marketing program takes full effect.

Vonex has also added 30 new reseller channel partners in the 2019 financial year to date and is on track to add 100 new partners by 30 June 2019.

This is largely due to the marketing acceleration for the channel partner program, which has resulted in 28 new enquiries in the first two weeks of December.

More potential partners have been either approved and are awaiting onboarding or have made enquiries and are awaiting approval according to company management.

The company has also re‐engaged with 62 of its existing channel partners after identifying opportunities to provide additional support, increase productivity and realign its incentives.

Separately, Vonex said mobile versions of its game changing new “Oper8tor” communications App are expected to be available on both the Apple App Store and the Google Play Store by March 2019.

Oper8tor was designed to enable users of multiple voice communication platforms such as Skype or Whatsapp and others to communicate with each other in real time regardless of which platform each user subscribes to.

Management said the mobile version will provide most of the functionality of the desktop version whilst adding several mobile only features.

Since listing in June 2018, Vonex has pressed ahead with initiatives to grow its business and with the record revenues it enjoyed in November, the company’s business model is now clearly starting to be validated.

The exquisite part of Vonex’s model is the recurring nature of a lot of its income with many clients paying regular subscription fees to access Vonex technology.

Given that its marketing initiatives have just started to kick into gear, it will be interesting to see just where this small cap tech player finishes the year in 2019.

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Vonex (VN8)

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