- Serko’s growth in travel management app Zeno gifted the company a 28 per cent growth in annual revenue
- Operating revenue hit $23.5 million, meeting the upper half of management’s targeted growth
- Total bookings through the app increased 17 per cent, accounting for a massive North American demand which has prompted a 2020 progressive rollout
Travel app developers Serko has reported a 28 per cent growth in annual revenue today. Operating revenue for the company was marked at $23.4 million, landing in the upper end of management’s 20-30 per cent revenue guidance target.
Serko’s mobile application Zeno is geared towards corporate and business travellers, assisting in expense management for individual users, such as booking flights and accommodation.
Company Chairman Simon Botherway says the most pleasing growth was an impressive demand for Zeno in North America.
“In response [to the demand], we have boosted our resourcing and prioritised development as we configure Zeno to meet the operational and marketing needs of these customers. This includes integrating complex travel content and associated services, as well as customised [Travel management company] integration work,” he said.
The company states a progressive Zeno rollout will commence in America in the early second half of next year. Botherway understood the commitment of investment needed but says the pay off will be worth it for the company.
“We anticipate that the customer agreements we have signed to date will generate strong revenue and growth in years to come,” he said.
Total travel bookings through the app grew 17 per cent. Serko also remains well funded, thanks to the completion of an oversubscribed $15 million capital raise last year in August.
The company completed the financial year with $15.7 million cash on hand and invested $3.8 million into system development and international growth. In effect, research and development costs increased 87 per cent.
Serko also reported a 26 per cent increase in recurring product revenue at $20.7 million.
Despite the ongoing growth, shares in SKO dropped 1.86 per cent this morning. Shares are currently trading for $3.16 in a $260.5 million market cap.