mCloud Technologies Corp (CVE:MCLD) (OTCMKT:MCLDF) is seeing good traction for its asset management solutions, especially in the light of the coronavirus (COVID-19) pandemic, and reported a 144% increase in its second quarter revenue compared to the same period last year.
In a statement covering the three months to end-June, 2020, the AI and Internet of Things (IoT) specialist also told investors it was on track to connect 70,000 assets by the end of 2020.
READ: mCloud Technologies adds another 2,675 assets to its portfolio fuelled by demand from oil and gas customers
Through its AssetCare product, the firm provides asset management to various business sectors, including commercial buildings, healthcare and heavy industry.
In the second quarter, revenue increased to C$5 million compared to C$2.05 million in the same period last year, as 2,675 new assets were connected, the company said.
In the half-year to end June, revenue grew by 383% to C$11.6 million, considerably higher than the C$2.4 million seen in the same period for 2019.
"Our over 51,000 connected assets generated recurring revenue that buoyed results for the quarter, a clear message that our focus on adding new connected assets to our AssetCare platform is paying off," Russ McMeekin, mCloud's chief executive told investors in a statement.
"Despite the challenges presented by strict lockdowns across the board, we are encouraged by the growing demand for remotely connecting assets across all of our business segments, and particularly our higher revenue-per-asset oil and gas customers."
Post period end, McMeekin noted that businesses had 'cautiously' returned to work while the firm had incrementally added new connected assets. Many new connected assets in the second quarter came from oil and gas customers, which command higher monthly recurring revenues.
"As a result, we continue to have a line of sight to achieving our goal of connecting 70,000 assets by end of year'" he added.
The new normal for most of our customers has revealed opportunities that are well suited to AssetCare and therefore we continue to be optimistic that our AssetCare platform will drive recurring revenue growth, achieve robust gross margins, generate sustainable positive cash flow for the business, and ultimately create value for all stakeholders," McMeekin concluded.
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