Novatti Group Ltd (ASX: NOV) shares were on the move today following the company's launch of its Emersion platform in the United States. By market close, the Novatti share price was trading 3.06% higher at 50.5 cents.
Let's take a closer look at what the digital banking and payments company announced.
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What pushed the Novatti share price higher?
Investors were pushing the Novatti share price towards its 52-week high today as the company begins to unlock its growth potential.
According to its release, Novatti has successfully rolled out its software-as-a-service platform, Emersion into the United States market. This completes the next step in the company's international expansion plans to drive growth.
Emersion is a cloud-based subscriber billing, business automation and payments platform. It provides automated end-to-end business processes such as customer engagement, billing, collections, subscription management and payments, customer cash flow, and more.
Aside from the United States launch, Emersion is also available in Australia, New Zealand, and Singapore.
The platform was acquired by Novatti less than a year ago and has already made strides within the company. Revenue has consistently increased quarter-on-quarter, rising to more than $550,00 in the December FY21 period. In addition, recurring revenue has also surged, up almost 20%. On average, five new customers are secured each month, which represents a strong jump from the original two customers per month before the acquisition.
Addressable market opportunity
The managed global services market is expected to soar to US$329 billion between now and 2025. This reflects a jump of nearly 50% in the market in which Emersion operates.
Novatti noted that the United States market is significant, and several times larger than the Australian and New Zealand markets. This highlights the significant potential to capture new market share and amplify recurring revenues.
What did management say?
Novatti managing director Peter Cook commented:
Emersion's strong, ongoing performance continues to reinforce Novatti's strategic rationale for its acquisition last year. Emersion's customer base across Australia, New Zealand and Singapore provides a solid foundation to continue its international expansion, starting with this launch in the US.
Emersion's launch in the US comes ahead of significant growth forecast for its key market segments in the coming years. This presents a great opportunity for Novatti, with Emersion's full SAAS platform expected to deliver high-margin, recurring revenues with each new client.
The Novatti share price has accelerated in value over the past 12 months, gaining around 460%. Novatti shares are also up by more than 90% year to date.
