Innovative mobile payment and marketing company Mobile Embrace Ltd (ASX: MBE) today climbed 10% to 22 cents on the back of a positive market update.
The business makes money by offering its clients digital payment and marketing technology to engage consumers on their tablets and smart phones. In so doing it says it saves money and boosts business performance for clients by helping them acquire customers and generate revenues via mobile engagement.
Today, the company upgraded its full year revenue guidance to $31.8 million, up $1 million over the previous guidance and said it is on track to post full year underlying earnings above $4 million.
Mobile Embrace is split into two divisions of M-Payments and M-Marketing, with the M-Payments business starting to gain traction in its overseas expansion.
For that division international transactions in March 2015 were up 42% over January 2015 and overall the group has grown revenues 60% for the three quarters ending March 2015, compared to the prior corresponding period.
The steady growth in subscriber base is fuelling the growth and the business would appear to have plenty of opportunity to grow organically or acquisitively with no debt and $9.3 million cash in hand.
However, it's not the only junior tech stock looking to capitalise on the growth in digital-marketing and mobile payments, with others like Moko Social Media Ltd (ASX; MKB), Adslot Ltd (ASX: ADJ), Migme Ltd (ASX: MIG) and 99 Wuxian Ltd (ASX: NNW) all looking for market share in a similar space.
These all are all interesting businesses, but the best online / tech businesses have built competitive advantages and have a long history of earnings growth to prove it.
