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 12 months for the company formerly known as AppScatter.
It has changed its name to Airnow following its acquisition of Airpush, which was concluded in mid-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.
Headed for profitability
Airnow has crossed the Rubicon: it is break-even and at the current revenue run rate expects to make US$5mln in profits this financial year.
The latest acquisition, whose details are being kept under wraps, could double current turnover, pushing annual profits to US$11mln.
Fundraising for this deal started a week ago and Airnow already has more than half the cash it requires to close the purchase.
“I have to say that this is an excellent performance, particularly in these extraordinary times,” said Philip Marcella, the chief executive.
The Airpush marriage, meanwhile, has propelled the company to a new level, not just financially, but operationally too.
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 companies 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.
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.
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.