The Adveritas Ltd (ASX: AV1) share price is on the rise today after announcing its first contract with a European customer.
Based in Perth and Singapore, Adveritas is a fraud prevention software services company that specialises in digital advertising. The business services customers world-wide through its flagship software product, TrafficGuard.
During the opening minutes of trade, the Adveritas share price reached an intraday high of 18.5 cents, However, some slight profit taking have led its shares to retrace to 18 cents, up 5.9%.
What did Adveritas announce?
In today's release, the company reported it has signed a commercial agreement with Deezer, a French online music streaming service.
Developed in Paris, Deezer allows its users to listen to music content from record labels. The company has over 56 million licenced tracks in its music library and 100 million playlists. In addition, Deezer boasts a member base of 16 million active users spanning over 180 countries.
Deezer is also the exclusive global music partner of smart technology wearable and fitness company, Fitbit.
Terms of the deals
Under the agreement, Adveritas will supply Deezer with TrafficGuard's mobile app install anti-fraud solution. The Software-as-a-Service (SaaS) product detects and prevents real-time ad fraud. This keeps incoming traffic clean, increases reach, and drives return on ad spend.
For access to the service, Deezer will pay Adveritas a monthly base fee of 4,000 euros for a minimum 6-month period. The contract is extendable outside Deezer's mobile segment, in which Adveritas is currently running trials into web and social spend.
The contract follows a raft of recently signed smaller deals which is expected to contribute to Adveritas annualised revenue. It noted that since the beginning of the calendar year, combined additional revenue stands at roughly $100,000.
Words from the CEO
Adveritas CEO Mat Ratty, touched on the company's flagship software product, saying:
The rise of sophisticated fraud that installs apps, wasting companies' advertising spend and causing misallocation of marketing budgets, makes tools like TrafficGuard more important than ever before.
With a number of global companies running trials with TrafficGuard, a few in contract negotiations, and a substantial increase in qualified leads across multiple industry verticals and regions over the past few weeks, we are well positioned to build on recent momentum.
About the Adveritas share price
Over the past 12 months, the Adveritas share price is down almost 20%. The company's shares dive down to a 52-week low of 6.5 cents in March, before see-sawing for most of the year.
At the start of November, its shares rapidly shot up after reporting a surprise positive quarterly report. Since then, the Adveritas share price has stabilised around the late teens mark.
