AI marketing expert Albert Technologies sees slower than expected revenue growth in year to date
Revenue growth in the year to date has been slower than anticipated, mainly due to longer ramp up time with the Enterprise clients.
Albert Technologies Ltd (LON:ALB) has earlier today provided an update on trading for the first four months of the current financial year and on the expectations of the Company’s management for the year as a whole.
As previously reported, the company has marked progress in 2018 in successfully deploying Albert – its autonomous cross-channel AI marketing platform, with some of the world’s leading brands and agencies, which makes the management confident in the potential of the current client base, as well as the pipeline of opportunities.
Since the start of the year, a number of our existing Enterprise clients have continued to expand their activity with Albert Technologies, whilst others are in active discussions with the company regarding expanding their activity in the coming months.
In terms of actual performance, revenue growth in the year to date has been slower than anticipated, principally as a result of longer ramp up time with the Enterprise clients, such that revenues are similar to those for the first four months of 2018. The company’s management expects growth to pick up in the coming months based on their assessment of the existing client base and the sales pipeline.
Given the performance for the start of the year, and the fact that as previously stated Enterprise clients’ sales, onboarding and expansion of activity, takes longer than for the previous roster of midsize and small businesses, management anticipates that revenues for 2019 are unlikely to reach current market expectations, which forecast revenue to more than double over 2018. Whereas the Company’s management expects that the outcome for 2019 should show significant improvement over the performance achieved in 2018, it remains difficult to accurately predict short term revenue outcomes.
In March this year, Albert Technologies reported 2018 financial results in line with its budget expectations. Revenues increased to $4.6 million, marking an almost threefold increase on the $1.7 million achieved in 2017. The company also saw a 50% increase in average monthly revenue per customer, year on year. On the downside, the company posted an adjusted EBITDA loss of $12.2 million, as well as an operating loss of $12.7 million.
At the end of 2018, net cash was $15.4 million (2017: $11.1m), following successful fundraise of $16.8 million, net, in June 2018.