Shares in mobile advertising technology company, Snakk Media, have fallen today after it announced full year financial results showing strong revenue growth of 92 per cent on the 2013 financial year.
Revenue for the company, co-founded and chaired by entrepreneur Derek Handley, grew from $3.6 million to $7 million this year, however the company has yet to record a profit, with the majority of revenue being re-invested in company growth. The full year unaudited result showed net loss after tax of $1.8 million, however with revenues continuing to grow, chief executive Mark Ryan said he was not too concerned.
"Seeing our growth continue to accelerate so strongly and beat the previous financial years' gains is a fantastic reward. We exceeded our internal forecasts by quite a large margin, with our fourth quarter growth proving to be another record-breaking result." Ryan said.
Snakk shares have fallen today by 13c to 96c.
Business expansion has also seen the company announce the opening of a Singapore-based office to further their growth in the Asian regions, an area Ryan sees as being a gateway for the business.
"Centering our operation in Asia's regional hub makes sense as the majority of decisions made in Singapore directly influence other markets," Ryan said. "We also see Singapore as an ideal launch point for moving into other countries and regions, including Thailand, Hong Kong, Indonesia and Malaysia."
See Snakk's results announcement to the NZX here:
Ryan said the company would be focusing on continuing growth in the coming financial year as well as further expansion in Asia.
The mobile advertising industry is expected to grow significantly over the coming few years according to analysts, with growth fuelled by new technology, growing interest in mobile as a platform and improved market conditions.
Highlights for the company this year included being named in the Deloitte Fast 50 Index in November, taking out the number six spot, and hitting a million dollars in revenue in December.
Snakk will begin the 2015 financial year with more than $6.3 million in cash and cash equivalents to fund its expansion plans.