Besides coveted cosmetics, shoes and tech, safety was a major item on the Black Friday bucket list for parents. Just in time for the new school year, parents put Spacetalk’s Telstra-enabled Mobile plan on their list for affordable data and network connection.
During the second quarter of FY24, software services and smartwatch company Spacetalk Mobile (ASX: SPA) was on a growth trajectory, reporting a substantial 58% uptick in active subscribers from Q1 FY24 and an impressive 77% surge compared to Q4 FY23, now boasting over 26,000 active users.
The Company forecasts a revenue increase of more than 20% in the first half of 2024 from continuing operations, outperforming the previous corresponding period.
Chief Executive Officer and Managing Director Simon Crowther, said, “Spacetalk continues to deliver growth that reflects the focused execution of our strategy. We are building an ecosystem of interconnected products and Spacetalk Mobile subscriber growth is pleasing as it demonstrates the strength of the Spacetalk suite of products that together deliver safety for families.”
“Strong activation of devices and retention of existing customers drove the growth in Spacetalk Mobile subscribers, and this underpins our overall strategy to continue the growth of our subscription-based revenue model in addition to wearables revenue,” he added.
Spacetalk is a SaaS provider whose overall tech platform offers a full digital communication solution, ensuring safety for families at all stages and for employees in remote locations. Its core hardware is a smartphone watch, which is basically a kid’s first mobile—traceable by parents and effective for emergency use by kids.
In another recent trading update, the Company had noted its plans on building a family plan within Spacetalk’s mobile network, allowing families to keep using its network as their child grows.
The current growth in its mobile division is attributed to solid Q2 sales, heightened activations resulting from the soft locking of the Loop watch to the Spacetalk Mobile network, and the inherent value of the Spacetalk ecosystem, contributing to strong customer retention.
Spacetalk also expects a significant increase in revenue for its wearables, projecting double-digit growth. This will allow the Company to surpass the overall category performance in a challenging market.
Spacetalk is now offering 4G and 5G mobile plans. Together with its strong subscriber base at the end of the period, the Company will continue growing both its customer numbers and annual recurring revenue in the future.
It has also expanded its geographical base, entering New Zealand’s retail marketplace through The Warehouse Group last month.
With multiple growth plans in place, Crowther affirmed that Spacetalk is on track to meet its stated long term ARR target of $20-$25m in ARR over the three years from FY23.
Alinda is a Business Reporter for The Sentiment
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