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Airnow aiming to be the go-to company for app developers and publishers

Snapshot

  • Business has been transformed by Airpush deal 

  • Relisting on London Stock Exchange is planned 

  • Expected to be solidly profitable this year 

Domino's Pizza -

We have seen in the last four or five weeks a massive upturn in traffic and that traffic, in turn, has resulted in an increase in our revenues, which are fully automated. So, we are in a lot better position than many companiees

Philip Marcella, chief executive

It has been an interesting and busy year and a half for the company formerly known as AppScatter.

It has changed its name to Airnow following its acquisition of Airpush, which was concluded last December – a deal that moves the group a step closer to being a one-stop-shop for app developers and publishers.

This strategy will be further aided by a second purchase, the completion of which late next month should pave the way for a re-listing of the enlarged business.

The company’s stock market quote lapsed after six months’ suspension from trading as it carried out due diligence and the other important ancillary work required to complete Airpush the deal.

 

Funding boost

In August, Airnow entered into a £40mln investment agreement over a three-year period with Global Emerging Markets, the US$3.4bn Luxembourg-based investment group.

The funding, which expires on the earlier of three years or when GEM subscribes for securities in the capital of Airnow with an aggregate value of £40mln, provides the company with the financial flexibility to accelerate the growth of its existing app management business ahead of its planned return to a London listing.

“Airnow has made considerable progress in recent months and the ability to draw down on these funds will significantly accelerate the growth potential of the business,” said chief executive Philip Marcella.

The company said in the summer that it was trading at break-even and at the current revenue run rate expects to make US$5mln in profits this financial year.

The Airpush marriage has propelled the company to a new level, not just financially, but operationally too.

 

Scaling up

The enlarged business is home to 1.3mln developers and publishers, giving the company access to more than 250mln devices through its firmware updater.

The group has long-term blue-chip clients such as Amazon, Uber Eats, Domino's Pizza, YOOX, Net-a-Porter, LabCave Games, Bosch and McKinsey.

“Both Airpush and appSatter had the same goal – to create a one-stop-shop for app developers and publishers to manage their apps,” said CEO Marcella. “I think we are starting to achieve this.”

Practically, this means the company provides distribution and monetisation services for developers and publishers as well as security and data services.

The Airnow Data division was launched in August to help developers better track how their products are doing, offering a quality of information on the app ecosystem that “few companies around the world can compete with”. 

 

Partnerships aid growth

Where it can’t buy-and-build it will organically grow new offerings for a hungry client base.

And of course, there are partnerships such as the agreements it has struck with the payment services platform, Bango, and the digital marketing agency Interarrows, which is taking Airnow into Japan.

While traditional bricks and mortar businesses have struggled as the coronavirus lockdown has stifled economic activity, Airnow is positively flourishing (though Marcella appears somewhat abashed by the firm’s fortunate predicament).

Its workforce was mainly home-based before the outbreak, while the move to a more restricted, sedentary lifestyle has seen an upturn in demand for smartphone and tablet applications.

Conducting meetings online has seen a predictable surge in demand for Zoom, the communications platform, though the number is staggering with a month on month 751% increase in downloads via Apple, according to Airnow’s own data.

 

Corona-proof?

Knocking Zoom’s performance into a cocked hat is the face-to-face social network app, House Party, with downloads on the Google Play store up 1,500%.

“We have seen in the last four or five weeks a massive upturn in traffic and that traffic, in turn, has resulted in an increase in our revenues, which are fully automated,” said Marcella. “So, we are in a lot better position than many companies.”

Airnow’s year has been one of value creation. Its shares were delisted at 17.2p and funds were raised subsequently at 26.8p. After a one-for-five share consolidation they are now worth 134p each.

With 80mln shares in circulation, the firm is currently worth 107mln. Where it goes from there is anyone’s guess given the febrile state of the markets; however, those looking for a corona-resistant investment could do far worse than look at Airnow.

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Airnow at the Proactive One2One Virtual Conference

Airnow PLC's Philip Marcella pitches to investors at Proactive One2One Virtual Conference. Airnow PLC was created in 2019 following the merge of appScatter and Airpush, aimed to provide an end-to-end SaaS platform for the management and monetisation of mobile apps that meets the needs of app...

on 18/9/20

4 min read