KUALA LUMPUR: Digital security solution provider Securemetric Bhd expects to post better results in the year ending December 31, 2020 (FY20) as it targets to grow its recurring income contibution to revenue to 50 per cent from the current 20 per cent in five years.
Executive director and chief executive officer Edward Law said this was following Securemetric’s plan to launch Security as a Service (SaaS) in mid-January next year.
“Besides looking for a new source of recurring income, the launch of our SaaS product will enable us to expand our market reach globally, with a very aggressive pricing and business model.
“Over the years, we are very much project-driven company and our recurring income were mainly driven by support and maintenance contract. We want to grow that even bigger in the next four to five years,” Law told the New Straits Times NST in an interview recently.
For the third quarter ended September 30, 2019, Securemetric posted a net loss of RM24,000 from a net profit of RM1.52 million, due to lower gross profit arising from the decrease in public key infrastructure revenue. Revenue in the same quarter eased 20.4 per cent to RM7.35 million from RM9.23 million.
Law said the company had received encouraging response from potential clients for its SaaS, including some from Asean countries.
Securemetric has a track record in neighbouring countries including Vietnam, the Philippines, Singapore and Indonesia, besides Malaysia, serving across different industries including the government, telcos, financial service industry and small and medium enterprises, to name a few.
He said in line with this, the company had set a target of signing up more than 600,000 users next year with a free accounts first.
“Our intention is to get as many businesses to sign up even free account. There will be a lot of add ons. Once they have started using the free version, they may then convert to the paid account for US$2 per user per month.
“We are looking at 15 per cent to 20 per cent potential conversion (to paid accounts) rate from this. If we are able to convert 20 per cent of them, we can have more than 100,000 paying customers by end of 2020,” he said.
Meanwhile, Law said the company’s orderbook stood at at RM12 million.
It is currently bidding for RM25 million more contracts in the region.
He said Securemetric’s win rate stood at 80 per cent.