Plexure sees revenue growth from White Castle deal
22 July 2019
Originally posted on NZ Herald Business Desk
Plexure Group expects to lift revenue by an undisclosed amount after signing US burger chain White Castle as a new customer.
Its NZX-listed shares bounced 12.9 per cent to $1.05 on the news, taking its market cap to $130 million.
The US fast-food operator will use Plexure's platform for mobile engagement and loyalty programmes. White Castle operates almost 400 restaurants across 13 states.
Plexure said the deal is part of a strategy to bring on new customers and expand its US operations. The mobile app vendor this year attracted McDonald's as a cornerstone investor, with the fast-food giant taking a 9.9 per cent for $5.4m.
"We're committed to helping White Castle activate mobile as a critical digital channel to its customers, to grow their value whilst enhancing the overall customer experience," Plexure chief executive Craig Herbison said in a statement.
Plexure more than halved its annual loss to $703,000 in the March year on a 44 per cent increase in revenue to $16.9 million. It has more than 128 million people around the world using its platform, and said the White Castle deal will boost revenue and user numbers.
The shares last traded at 93 cents, valuing the company at $129.6 million. They've soared from the 31 cent price they traded at in April before the McDonald's investment was announced.
McDonald's has been a key customer for Plexure, accounting for much of its revenue growth over the past year when it added 17 more countries to the platform. The global fast-food operator signed a worldwide deal with Plexure in 2015.