Pelatro Contract Win
, announces an expansion contract with an unnamed existing customer for its market leading mViva platform. It’s reassuring to see that the innovative nature of the industry has created further pull-through further demand for the Company’s contextual marketing platform, with this particular customer ordering two new modules and some further change requests.
Commenting on the [contract] win, Subash Menon, the Managing Director, CEO and Co-Founder of Pelatro Plc said: "Pelatro has always been able to identify the emerging needs of the industry in general and our customers in particular. This is critical to maintain product differentiation and to be a leading player in our space. Further, this approach ensures that we continuously add value to the business operations of our customers, are able to cross-sell new products, thereby deepening the relationship."
This is further welcome news following last month’s trading update stating FY19 adjusted EBITDA will be in line with [market] expectations of approximately $2m. The Company reported adjusted EBITDA of $0.8m for 1H19.
Clearly FY19 has been a year of further investment with the Company leading the innovation curve for contextual marketing across the telecoms industry where typical sales cycles are long and product differentiation is key for Pelatro.
Current consensus estimates suggest the Company will continue its growth trajectory with FY20 revenue growth of more than 20% and adjusted EBITDA jumping to approximately $3m. From a valuation perspective, these consensus estimates puts PTRO on FY1 EV/Sales and EV/EBITDA multiples of 2.5x and 5.1x, which look undemanding at this stage of the Company’s development.
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