Adveritas Reports 16% Quarterly ARR Growth to $12.2 Million
Adveritas Limited has reported a record annualised recurring revenue of $12.2 million for the September 2025 quarter, driven by strong affiliate momentum and initial commercialisation of its Meta integration. The company is advancing its US expansion with a robust trial pipeline and expects significant contract conversions in the coming quarter.
- Record ARR of $12.2 million, up 16% quarter-on-quarter and 84% year-on-year
- 17 active Meta product trials with contracts expected in December quarter
- Affiliate product trials initiated in sports betting vertical showing strong demand
- Operating expenditure disciplined at $3.8 million with $6.9 million cash balance
- US expansion progressing with pipeline potentially worth $1.95 million in contracts
Record Revenue Growth
Adveritas Limited (ASX, AV1), a leader in digital marketing anti-fraud technology, has delivered a standout performance in the September 2025 quarter, reporting a record annualised recurring revenue (ARR) of $12.2 million. This marks a 16% increase from the previous quarter and an impressive 84% growth compared to the same period last year. The company’s flagship product, TrafficGuard, continues to gain traction across multiple verticals, notably sports betting and online gaming, which remain strategic priorities.
Expanding Product Horizons with Meta and Affiliate Channels
Adveritas is making significant strides in commercialising its Meta product following approval from Meta Platforms Inc. Seventeen trials are currently underway, with contract conversions anticipated in the December quarter. This integration opens access to Meta’s social media platforms such as Facebook and Instagram, effectively doubling the addressable market for TrafficGuard. Concurrently, the company has initiated trials of its affiliate product within the sports betting sector, leveraging a proven solution originally developed for Disney Streaming Services. Early signs indicate strong market appetite, with multiple affiliate agreements signed pending trial outcomes.
Strategic US Expansion and Diverse Pipeline
Adveritas has accelerated its US market entry, supported by a recent capital raise. The presence of sales personnel in the US has facilitated a record trial pipeline encompassing new clients and referrals, with potential annual contract values estimated at $750,000. Additional qualified opportunities could add $1.2 million if converted. These prospects span diverse sectors including e-commerce, fintech, legal, and healthcare, underscoring the broad applicability of TrafficGuard’s solutions beyond its traditional sports betting base.
Financial Discipline and Outlook
The company maintained disciplined operating expenditure of approximately $3.8 million, aligned with its growth strategy. Despite a dip in cash receipts to $1.5 million due to timing of prepaid contracts, Adveritas ended the quarter with a robust cash balance of $6.9 million, well-positioned to fund ongoing expansion and product development. CEO Mathew Ratty expressed confidence in a strong December quarter, driven by AI enhancements, new verticals, and agency partnerships aimed at scaling market reach and revenue.
Bottom Line?
With record ARR and promising new channels, Adveritas is poised for a pivotal December quarter that could redefine its growth trajectory.
Questions in the middle?
- Will the 17 Meta trials convert into significant long-term contracts as expected?
- How quickly can the affiliate product scale beyond initial sports betting trials?
- What impact will US market expansion have on overall revenue and profitability?
