According to Emersion CEO Paul Dundas:
“Emersion enables our clients to focus on growing their business. Our value proposition is simple: we integrate your systems so that you can focus on your customers. Importantly, our platform has been purposefully designed to scale rapidly, which enables us to continue our overseas expansion, targeting key growth markets like the US.”
The global managed services market that Emersion operates in is expected to grow by nearly 50% between 2020 and 2025 to US$329b. Importantly, the North American market is many times the size of the Australia-New Zealand market, highlighting the enormous growth opportunity that this US launch presents for Novatti. Further, the US accounts payable automation market is also expected to grow more than 110% between 2019 and 2025, to US$4b.
“Emersion’s launch in the US comes ahead of significant growth forecast for its key market segments in the coming years,” Novatti CEO Peter Cook said in the ASX press release.
“This presents a great opportunity for Novatti, with Emersion’s full SaaS platform expected to deliver high-margin, recurring revenues with each new client.”
Emersion has gone from strength to strength, including:
- Continuous revenue growth in each quarter, rising to more than $550,000 in December FY21 quarter
- Quarterly recurring revenue up nearly 20%
- Securing an average of five new customers a month, up from an average of less than two prior to acquisition
Emersion’s customer acquisition in the US will be aided by its launch last year on the global business app marketplace, Salesforce AppExchange. It will also be available through other major customer acquisition platforms, including ConnectWise Marketplace.
Emersion has also integrated and executed a reseller agreement with, Wolters Kluwer’s CCH SureTax for tax calculation and compliance for the US telco market. This will enable managed service providers and telcos to accurately calculate and present tax for voice and data services.
Cook also said that “Emersion’s strong, ongoing performance continues to reinforce Novatti’s strategic rationale for its acquisition last year. Emersion’s customer base across Australia, New Zealand and Singapore provides a solid foundation to continue its international expansion, starting with this launch in the US.”
Read the full ASX Press Release here.