Velti posts 71 percent increase in revenue to $58.7 million in Q2 2012

Telecom Lead America: Mobile marketing and advertising
technology provider Velti has posted 71 percent increase in revenue to $58.7
million in Q2 2012 as compared with Q2 2011.

 

Net loss during the period was $17.7 million.

 

Velti has experienced healthy growth across its products
and geographies, especially in the Americas, Western Europe and Asia.

 

Velti CEO Alex Moukas said in addition to solid revenue
and adjusted EBITDA growth, Velti achieved positive free and operating cash
flow, reduced its comprehensive DSOs, integrated its two recent acquisitions,
Air2Web and Mobile Interactive Group (MIG), and signed up significant new
customers that will drive Q4 revenue.

 

Velti expects its net cash position to trough in Q3 as it
deploys working capital ahead of its large Q4 campaigns. It will achieve
approximately neutral operating cash flow in Q3 and consistent positive free
cash flow beginning Q4, while improving comprehensive DSOs throughout the rest
of 2012.

 

Velti has closed a $50 million credit facility with HSBC.

 

In China, Velti is using its CASEE acquisition as a
platform to expand our mobile marketing offering to augment CASEE’s mobile
advertising business.

 

Velti is reducing headcount and costs by several million
on an annual basis.

 

The Americas contributed 29 percent of revenues or $16.7
million, compared with $7.4 million in Q2 2011. The U.S. will be its single
largest market this year.

 

Europe, excluding the U.K., has contributed $18.8
million, compared with $15.6 million in Q2 2011. The U.K. contributed $13.6
million, compared with $4.7 million in the same period last year.

 

Asia and Africa revenue grew to $9.5 million, compared
with $6.7 million in Q2 2011.

 

For Q2 2012, SaaS revenue contributed 83 percent of total
revenue, compared with 80 percent for Q2 2011; license and software revenue
contributed 5 percent of total revenue, compared with 12 percent for Q2 2011;
and managed services revenue contributed 12 percent of total revenue, compared
with 8 percent for Q2 2011;

 

Mobile advertising revenue of $13.9 million (24 percent
of total revenue), an increase of 137 percent from Q2 2011 and mobile
advertising 3rd party costs of $10.4 million; resultant mobile advertising
revenue less 3rd party costs of $3.5 million; and

 

Mobile marketing revenue of $44.8 million (76 percent of
total revenue), an increase of 57 percent from Q2 2011 and mobile marketing 3rd
party costs of $10.6 million; resultant mobile marketing revenue less 3rd party
costs of $34.2 million.

 

 

editor@telecomlead.com

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