VMob, the mobile advertising firm which joined the NZX main board in January, widened its annual loss while investing in building a presence in the US market and in the development of its technology platform.
The net loss was $6.6 million in the 12 months ended March 31, from $4.4 million a year earlier. Revenue more than doubled to $6.6 million from $2.9 million in 2015.
Annualised committed monthly revenue (ACMR) rose 70 per cent to $5.4 million. In April, the company affirmed guidance for ACMR of $10 million within six-to-nine months and said it expected to reach that target by the end of September. ACMR soared more than 1000 per cent to $4.8 million in VMob's first half, when it reported a net loss of $3.2 million.
VMob said it expected to raise more capital in the second half of 2016, possibly including a US-based strategic shareholder. The company raised $8.5 million in the last financial year and is currently raising up to $4 million in a private placement.
Major international clients including McDonald's, Ikea, Anheuser-Busch and 7-Eleven Australia would underpin revenue growth in the year ahead, VMob said.
VMob's technology platform delivers personalised, location-based promotional offers to mobile phone users on behalf of major brands to increase sales.
In January, founder Scott Bradley said funds raised from an earlier $5 million placement would last the company through to mid-year with its cash burn hovering between $600,000 and $700,000 a month.
VMob had $2.6 million cash and equivalents as of March 31, from $1.
Shares closed down 3c yesterday at 35c.