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Applabs Technologies: RosterElf Customer Base Rockets Over 700%

Applabs Technologies (ASX:ALA) has used a series of strategic investments into early stage technology companies to successfully leverage the company to the cloud and other rapidly advancing sectors.

Each new investment also effectively de-risks the company's portfolio, and provides a potential future path to monetisation if Applabs decides to exit the investment at a higher price during a growth stage.

Applabs holds a 25% stake in RosterElf Pty Ltd which it acquired in February this year.

RosterElf is focussed on providing a cloud-based rostering system, and the company also appointed Applabs to develop iPhone, iPad and Android applications.

RosterElf's customer acquisition soars

For the period from August to October 2014, RosterElf's customer uptake soared by over 700%.

A key highlight has 500 customers signing up to the system across a range of industries including hospitality, healthcare, security and entertainment.

The diversification in the customer acquisition process highlights the scalability of a technology that can be used across all sectors - providing RosterElf with an almost limitless potential client base.

Patrick Glovac, managing director, commented: "We are extremely impressed not only with the rate of growth for customer uptakes, but also the 100% retention rate of paying customers.

"The RosterElf team are doing a fantastic job fine tuning their operations in order to acquire customers in the most cost effective way, through a solid Google Adwords and SEO strategy."

Revenue ramp-up as costs down

Cash is key to any business, and revenue from RosterElf customers completing trials is flowing into the business with a 100% retention rate.

The launch of a strategic digital marketing program has paid dividends already, with the program including Search Engine Optimisation and targeted Google Adwords campaigns, which have been developed and implemented to attract new customers.

The strategy is performing well with RosterElf achieving page one results in most keyword targets in Australia.

Google Adwords campaigns have been optimised to reduce the cost per acquisition from $100 to just over $10 per trial customer.

RosterElf has also commenced work in key overseas markets including UK, USA and New Zealand.

Analysis

In February this year Applabs acquired a 25% stake in cloud-based rostering system RosterElf, with this investment being validated by the sheer growth of this portfolio investment.

RosterElf's client base has soared over 700% in the three-month period to October 2014, with revenue from customers completing trials flowing into the business with a 100% retention rate.

RosterElf's customer acquisition costs have fallen to just over $10 per trial customer from $100 following the success of a digital marketing campaign.

The strategic investment model of Applabs is focussed on a rapidly expanding technology sector, with the company effectively de-risking its portfolio with investments into companies such as RosterElf.

Applabs is also getting in on the "bottom-floor", by evaluating companies at their very early stages and making investments at a seed level.

The potential of Applabs has not been lost on Jamie Pride - former realestate.com chief executive - who has joined one of Applabs wholly-owned subsidiaries Home Open as chairman.

Pride has 20 years of experience in peer-to-peer and enterprise software and mobile application development.

Applabs had $3.8 million in cash at the end of September 2014.

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