ASX-listed, US-based IoT platform provider, Buddy Platform (ASX: BUD) has achieved for the first time the processing of one billion transactions through its platform in one month and, says CEO and cofounder David McLauchlan, is close to achieving another milestone of 20 million discrete connections per day.
In an update to the ASX on 7 July, McLauchlan said: “Buddy is significantly ahead of its projected plan on data and device volume. We expect to shortly achieve our first performance milestone of 20,000,000 discrete connections per day to Buddy by network-connected hardware or software applications for three weeks. We’ve comfortably exceeded that figure on a daily basis, but need to maintain it for three straight weeks, so we don’t think this milestone is very far away at all.”
Buddy’s VP of Product & Engineering, Habib Heydarian, said the billion transaction per day threshold “represents traffic growth of nearly four times over only twenty seven weeks since we relisted on the ASX.”
Buddy said the data came from both new customers and existing customers who had increased their traffic flow through the platform. “These include data from US and European retail locations, smart electricity, water and gas meters, gaming platforms with substantial usage in China and South-East Asia, mobile cellular devices and smart home products including alarm and lighting products.”
The update was issued the day after Buddy announced completion of a $A4.5m capital raising via the issue of 45 million shares at $A0.10 each. It said the funds raised would be applied towards general working capital.
In the update, McLauchlan said: “Buddy has previously given guidance that investors should generally not expect the business to generate profit in its formative years. The capital raising that was undertaken as part of the re-compliance process was to fund the company during this time to enable it to achieve its target milestones within three years. Upon achievement of those milestones, it is envisaged that Buddy will be in a position to declare profits on very meaningful revenue.”
He added: “The customer pipeline is far stronger than I anticipated it would be six months ago. The company is currently assessing over 500 potential customer opportunities. Last month alone, we added seven new opportunities worth $US317k to the pipeline (opportunities are conversations or “leads where we’ve established more than 50 percent likelihood of closing a commercial deal). … This bodes well for our core business in advance of the potential acquisitions currently on the table [of Zentri and Noveda]. Undoubtedly, there is a clear indication from the market and our customers that a real business need exists for what Buddy does and what it can deliver.”