Mobile app maker TrueContext Mobile Solutions Corp. (CVE:TMN) said Thursday that second quarter revenue rocketed 122% year-over-year and 17% sequentially as the company benefits from continued subscriber growth.
The company, which in early 2010 announced its partnership with AT&T, is responsible for the ProntoForms business application, which does away with paperwork and redundant data entry, allowing field workers in the retail inspection field, for example, to fill business forms from Apple, Blackberry, Android, or Microsoft-powered devices as required.
The mobile app, which is available for purchase directly through AT&T's Small Business Mobile Application Recommender Tool (SMART), allows companies to streamline their out-of-office processes and workflows by turning paper forms into mobile ones. ProntoForms enables users to create forms, generate reports, as well as capture signatures and photos within minutes, all in real-time over the AT&T wireless network.
Data on the mobile form is then maintained securely in a data-center, and can be turned into emails or PDF reports, instantly accessible with an internet connection or connected to back office systems.
The app hits the sweet spot in terms of what small and medium businesses desire for mobile applications - it is a tool that will help their mobile workforce increase productivity in the field, helping businesses save time and be more effective. Subscribers can also download templates and customize forms as they wish through the TrueContext website.
Total revenue for the three months ending June 30 totaled $338,628, compared to $152,446 a year ago, and $288,788 in the first quarter.
License revenue came in at $220,720, representing 138% year-over-year growth, driven solely by subscriptions.
"Building the subscriber base provides a growing, predictable and recurring source of cash and we are already beginning to see the benefits including meaningful top line growth," said CEO Alvaro Pombo.
The total average number of subscribers per month increased by 58% sequentially, the company said, from 4,209 in the first quarter to 6,641 in the latest period.
Subscription revenue through operator channels, such as through the AT&T partnership, climbed to $108,714, more than double the figure from the previous quarter. This is an area on which TrueContext plans to focus on in the future, as adding more operators like AT&T is expected to drive growth. Aside from the subscription sales generated through such partnerships, advertising through operating channels also drives higher volumes of traffic through TrueContext's website.
Average subscribers per month for operators rose to 3,620 during the second quarter, compared to 1,646 in the prior three month period.
"In the first half of 2011, we have more than doubled our operator channel customers,” added Pombo.
"Our operator channels are key to our success and we are focused on driving subscriber growth with these partners as well as exploring additional channels in new markets.
"We also feel that our long-standing commitment to intellectual property provides strength to our core business and opens up incremental licensing opportunities."
With recent high profile IP driven transactions in the industry, the company views this as an important asset and it is seeing more activity on the IP front.
Meanwhile, services revenue stood at $118,358 in the latest three month period, nearly double what it was a year ago.
As expected, TrueContext's subscriber growth strategy trades short-term, reported losses for the addition of long-term subscriber cash flow, with wider second quarter losses on additional product development and sales and marketing support spending. The company posted a net loss of $689,813 in the latest quarter, compared to $482,967 in the second quarter of 2010.
The Ottawa-based mobile app provider ended June with cash and equivalents of $1.2 million.