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Velpic's shares ride higher on continued growth in recurring revenue

The company has developed a unique cloud-based learning management system.
velpic's suite of products
Recently added the National Rugby League to its growing client list

Velpic Ltd’s (ASX:VPC) annualised committed monthly revenue (ACMR) is expected to exceed $800,000 by the end of December 2017, a 130% growth from the December 2016 quarter.

The company’s shares closed 12.5% higher on Tuesday, at $0.009.

Velpic has developed a unique cloud-based Learning Management System (LMS) that allows companies to create their own training lessons and distribute them to staff and contractors.

Following two record quarters for revenue growth in March and September, the December Quarter also looks poised to exceed expectations.

READ: Velpic launches eLearning platform for National Rugby League players

Earlier this week, the company achieved a major breakthrough by adding the National Rugby League (NRL) to its growing list of enterprise clients.

Velpic LMS will be rolled out across Australia and New Zealand by the National Rugby League and used by 4,000 players across the talented player and elite pathways.

READ: Velpic teams up with NowForce to enter US$220 billion security services sector

Israeli-based security software company NowForce Limited had chosen Velpic as its sole distributor in Australia and New Zealand.

Velpic Security (powered by NowForce) is expected to be available at the end of January 2018 and will provide a significant opportunity to drive further revenue growth.

The entry level pricing for the security product starts at $25,000 per annum, which is significantly higher than the current average pricing for the Velpic LMS of $7,200 per annum.

Low risk opportunity to grow international presence

The increased revenue per customer combined with higher profitability of Velpic Security is expected to accelerate Velpic’s path to profitability.

In addition, following the integration of Velpic and NowForce, Velpic will also be sold as a white-labelled product within NowForce internationally.

This provides Velpic with a significant low risk opportunity to grow its international presence with the first integrated features expected to be available at the end of March 2018.

Russell Francis, chief executive officer, said: “Transformational deals and partnerships like the NRL and NowForce, on top of growing ACMR, with a significantly lower cost base, puts Velpic in a very strong position for 2018 to take the business to the next level.”

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