SAN FRANCISCO--(BUSINESS WIRE)--Velti (NASDAQ: VELT), the leading global provider of mobile marketing and advertising technology, today announced it has closed a $27 million, 2-year deal to provide its mobile marketing technology to a major U.S. brand. Expected to commence in the next few weeks, this program will drive increased engagement with and long-term loyalty of the brand’s existing customers.
Technology underscoring this program is a game changer in the U.S. mobile industry, enabling brands to optimize mobile customer lifecycle management by using data to predict and optimize engagement. Engagement programs are increasingly popular; according to eMarketer, 57% of consumers said they would stick with a brand because of its loyalty program. Velti targets this market, connecting brands to interested customers by allowing the brand to develop valuable relationships through the creation of loyalty, retention and advocacy with customers from a multi-channel perspective, with the mobile channel taking the lead.
“This deal is emblematic of the significant traction we are seeing in the U.S., the single largest country for us in terms of revenues. There is a massive opportunity for brands to engage with existing customers and build lifelong relationships,” said Velti CEO Alex Moukas. “Using data to predict and optimize engagement is a vital step in executing the right strategy; our work with this brand is a perfect example of a brand using Velti mobile technology to manage the lifecycle of its existing customer base. The $27 million, 2-year deal also highlights our focus on cash generation, with net-30 payment days and monthly reconciliation and invoicing.”
Velti’s continued growth and innovation is helping shape the future of the industry and is enabling thousands of brands, agencies and publishers to create dynamic and engaging mobile marketing strategies. Velti has grown rapidly in the last two years, and in August, the company announced Q2 2012 revenues of $58.7 million, a 71 percent increase over Q2 2011, while doubling its Adjusted EBITDA.
About Velti
Velti is the leading global provider of mobile marketing and advertising technology and solutions that enable brands, advertising agencies, mobile operators and media to implement highly targeted, interactive and measurable campaigns by communicating with and engaging consumers via their mobile devices. The Velti platform, called Velti mGage™, allows customers to use mobile and traditional media to reach targeted consumers, engage the consumer through the mobile Internet and applications, convert them into customers and continue to actively manage the relationship through the mobile channel. Velti is a publicly held corporation based in Jersey, and trades on the NASDAQ Global Select Market under the symbol VELT. For more information, visit www.velti.com.
Forward-Looking Statements
"Safe harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements including statements regarding its mobile marketing deal with a major U.S. brand, the ability of brands to develop valuable relationships with customers through the creation of loyalty, retention and advocacy programs using Velti technology, and the success of Velti’s continued growth and innovation. The achievement or success of the matters covered by such forward-looking statements involve risks, uncertainties and assumptions, and if any such risks or uncertainties materialize or if any of the assumptions prove incorrect, the company's results could differ materially from the results expressed or implied by the forward-looking statements we make. These risks and uncertainties include - but are not limited to - risks associated with our ability to continue to expand as the leading global provider of integrated, comprehensive mobile marketing and advertising technology, achieve the benefits of the mobile marketing deal with this U.S. brand, keep pace with technological and market developments and remain competitive against potential new entrants into our markets. Further information on these and other factors that could affect the company's results is included in our Annual Report on Form 20-F and our current reports on Form 6-K filed with the Securities and Exchange Commission and in other filings we may make with the Securities and Exchange Commission from time to time.
Velti assumes no obligation and does not intend to update these forward-looking statements, except as required by law.