They quoted their conversion rate as being 17% (trending upward) across the last quarter. On initial release they had stated a figure of 40% in Australia, so one would assume the conversion in 1st world countries would be much higher.
No doubt an indication of success will be them being more transparent with download figures, conversion rates, revenue and dare I say it margins/profitability.
In the meantime, we can take a rough stab at the numbers by charting how long it took them to get their first 10k, next 40k Android downloads & see when the next 50k is achieved as they pass the 100k mark. Looking at App Annie, and 4 partnership in the last month, this rate should accelerate.
The background of these guys was along the lines of Aussie SIM that you mentioned earlier. I suspect that they are doing quite a few wholesale deals too, as the revenue figures they have reported have been quite lumpy and in some cases massive. I don't have an issue with this, as although this revenue is low margin (possibly even negative) it does afford them with buying scale, which will assist them in turning a profit should X continue to gain momentum. I think the Flexiroam Voice app, along with ZIPT and WP was a dismal failure, but either through the luck of being last to the party and not get getting caught up in ASX hype, or just being a little smarter, Flexiroam have avoided the wanton burning of cash chasing download numbers, and instead moved on quickly to secure 1st mover advantage, with their disruptive global roaming data solution.
Hopefully, they can gain enough momentum before someone bigger and uglier copies them!
They rightly should charge a multiplier on inflight broadband, but I don't see this as problem. This will be consumed by an entirely different market segment.
In this space, you are up against the business traveller's using product's such as Telstra's $140-$450 global roaming pass (for a single trip mind you, and without inflight broadband). Add in a GoGo pass $50-$60 monthly.
FRX Price at posting:
12.0¢ Sentiment: Buy Disclosure: Held
