28th May 2019 10:19
LONDON (Alliance News) - Albert Technologies Ltd on Tuesday said its does not expect 2019 revenue to achieve market expectations, although it sill will show a "significant improvement" over 2018.
Shares in the software company, which offers an online marketing platform called Albert that uses artificial intelligence, plunged 43% to 9.42 pence in morning trade in London following the announcement.
Revenue in 2019 thus far "has been slower than anticipated" due to a longer ramp-up time with enterprise clients, and is in line with the first quarter of 2018. Growth is expected to pick up later in 2019 based on Albert Technologies' existing client based and sales pipeline.
The market had expected Albert Technologies to more than double in 2019 its revenue of USD4.6 million in 2018, but the company said Tuesday it was "unlikely" to achieve this.
While Albert Technologies is expecting 2019 to "show significant improvement" over 2018, it said its short-term revenue outcome is "difficult to accurately predict". It has, however, taken steps to cut its cost base and conserve cash.
Thus far in 2019, a number of Albert Technologies' existing enterprise clients have expanded their activity with the company and others are in talks to do so. It started the year with "a dozen enterprise clients in the pipeline" and is on track to start activity with most of these clients by the end of 2019. The company believes these potential enterprise clients have "significant revenue growth potential".
Albert Technologies also expects "to add some mid-sized agencies" onto its client portfolio "in the near term" alongside the three existing agencies in its portfolio. The existing agencies "are expected to yield increased activity" in 2019.
"The company's management is focused on delivering shareholder value and reiterates its confidence about the longer-term market opportunity for Albert and the company's continued prospects," said Albert Technologies.
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