Vonex announces strong growth in recurring revenue

PERTH: Vonex Limited, telecommunications innovator, has achieved strong growth in annualised recurring revenue (ARR) $9 million as at the end of Q1 FY20.

ARR excludes one-off sales revenue and does not factor in net churn as the business continues to deliver positive net growth in active users. The Company is well-positioned to continue growing its ARR and expanding its base of higher margin, higher average revenue per user (ARPU) business, as strong demand continues from small and medium enterprises (SMEs) moving to cloud-based telco services.

Vonex’s recurring business model promotes stable revenue, maximises customer lifetime value and supports scalability.

Vonex has recently attracted more than 35,000 registered active subscribers to its cloud-based phone system platform.

Registered users of these Private Branch Exchange (PBX) connections are a key indicator of business development progress as Vonex penetrates the multibillion-dollar Australian market for telco services to SMEs.

Achieving this milestone reflects the Company’s strong start to Q2 of FY20, signing Total Contract Value (TCV) of new customer sales worth more than 500,000 in October 2019, an increase of 65% compared to October 2018. TCV of provisioned customers is calculated using the minimum monthly commitment multiplied by the contract length and is typically realised over a period of between two and three years.

The Company plans to deliver continued growth in TCV in FY20 as a mix of upfront and recurring revenue as it meets healthy demand from SME customers.

The Company is proud to drive and maintain extremely high standards in its delivery of customer service and support. Enhancing the customer experience is increasingly critical as the migration of customers to services delivered over the National Broadband Network (NBN) reaches its peak.

The Telecommunications Industry Ombudsman (T10) recently reported a total of 32,801 complaints relating to the provision of Australian phone and internet services in 0.1 of FY20, an increase of more than 6% compared to 01 of FY19. Vonex received zero TIO complaints from customers in 0.1 of FY20.

Each incremental active user is decreasingly material to the Company’s financials as Vonex’s business gains scale. As such, the Company will now shift from announcing each 1,000 users’ net growth to a new increment of 2,500 users.

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