Velpic Ltd (ASX:VPC) To Deliver A Record Breaking March-Quarter

Headquartered in Australia’s Subiaco, Velpic Ltd (ASX:VPC) offers a cloud-based eLearning platform that businesses can use to develop training sessions tailored to their needs and distribute the content to desired employee or partner through multiple devices, including tablets and smartphones. In addition, VPC runs Dash Digital, which is an end-to-end solutions provider for digital branding and marketing, including web and app development requirements. VPC’s current market capitalization stands at $13 million. The company said performance in the March-quarter, based on all key metrics, reached new year-on-year growth levels. New accounts added increased more than 300% and new monthly recurring revenue increased about 400%. While the improvement is impressive, the growth has come from an annual revenue base of less than $2 million, making it quite an early phase to decide whether this could sustain in the long-term. “The exceptional growth across all major metrics this quarter is a strong indication that the product we’re offering customers is clearly market leading and is a testament to our enhanced sales team”, said CEO Russell Francis in a statement today.

Bringing it to scale

Another metric that VPC considers important is Annualised Committed Monthly Revenue — recurring monthly revenue based on current SaaS clients projected over the year ahead —  grew 139% compared to the year-ago-quarter and 50% from the previous quarter. However, despite the increase, it stands at $0.5 million currently. Well, the key is to scale the business to become profitable from revenue-generating. Not popular yet in the investment community, VPC is covered by only one side-sell analyst, who doesn’t believe VPC would be able make profit out of its operations at least until 2019. Well, while Mr Francis didn’t discuss profitability, he believes VPC is on the verge of making it big — “it is evident we have now reached the point of scale and it is a key focus and target of the business to drive this scale throughout 2017”, he commented. VPC attributed its “newly enhanced” sales team for the successful quarter, while indicating that it’s the right time for it to turn from a fledgling technology venture to a mature revenue generating business “focussed on scale”. Check out what analysts think about Velpic’s future