Since being purchased by and integrated into Novatti Group (ASX: NOV) in April, Emersion Software Systems has thrived in the digital payments market through COVID-19 with uptake of their cloud hosted billing and payments platform exceeding expectations.
The smooth transition into Novatti Group has been aided by Novatti’s decision to continue operating Emersion as an independent business which complements the Group’s existing payments businesses.
In the past two months, Emersion has signed six new clients with contracted services to deliver more than $250,000 across the next three years and consolidate Emersion’s recurring revenue model which delivered $300,000 EBITDA in CY2019 from $1.7m revenue.
As the coronavirus pandemic has swept the globe, there have been major shifts in business dealings towards online operations. This has seen a rise in online transactions with global leader Visa reporting 5% YoY growth in their payment volumes from January to March, and one of the reasons Emersion CEO Paul Dundas identified for the unexpected growth.
“Emersion helps companies to engage with their customers, integrate their systems, automate processes, and collect payment. In particular, our real time billing platform makes it easy for our customers to manage usage-based services, improving customer cash flow,” said Dundas.
“With demand for voice, data, and energy services expected to increase going forward, we expect our recurring revenue to remain strong.”
As a one-stop-shop platform for online business, Emersion assists clients by integrating into more than 70 software platforms including majors such as Salesforece, Xero and ConnectWise.
With strong immediate performance from Emersion, and Novatti’s payments business which reported record revenues in Q3, further international expansion is planned for Emersion which currently operates in Australia, New Zealand and Singapore.
“We knew that Emersion was a strong business that would provide great synergies for Novatti’s digital-focused strategy. The strength of its platform has been on display during COVID-19 and will provide a sound base for continued growth, as we expect more people to work from home and to use the communication and entertainment services of Emersion’s partners going forward,” said Novatti Managing Director, Peter Cook.
*Owners of this website are shareholders in a company mentioned in this article and have been engaged by them to assist in investor communications
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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