9 Spokes International Ltd (ASX:9SP) attributes its creditable performance in the December quarter to continued traction of small-business demand for its business insights dashboard.
Signings were up 66% to 33,700 as at the end of the quarter, and this momentum has continued into January with 39,000 small businesses now registered on the platform.
Cash receipts outperform expectations, up 125% on a quarter on quarter basis to NZ$1.8 million.
Recurring revenue a feature of the business
One of the most compelling aspects of the business is its generation of recurring revenue which provides income predictability.
The company’s revised annualised recurring revenue (ARR) target is NZ$6 million to NZ$7 million, up from the previous target of NZ$3 million.
READ: 9 Spokes expects to more than double annual revenue by end of March quarter 2018
White label platform also performing well
Management has since reaffirmed this guidance, while also noting that its corporate white label platform is also performing well.
9 Spokes successfully deployed Royal Bank of Canada’s (TSE:RY) white-label platform on 1 November 2017.
With RBC now live, 9 Spokes has live platforms within RBC, Barclays Bank (LON:BARC) (NYSEARCA:VXX), Suncorp, Deloitte UK, and the Direct platform via 9Spokes.com.
Global partnerships expected to boost bank clients
The company continues to deliver on the business development strategy of forming global alliance partnerships.
A third partnership has been forged, in addition to IBM (NYSE:IBM) and a leading global consulting firm, with one of the largest technology consulting firms globally.
9 Spokes expects these partnerships to contribute to further bank wins during 2018.