IoT and cloud solutions firm Universal mCloud Corp (CVE:MCLD) reported an increase in revenue in its second quarter to end June as sales began to diversify away from US-based customers to Canada and Asia and it drives towards profitability.
mCloud bolstered its business pipeline in the three months, it said, signing large contracts with new customers, securing key contract renewals.
The tech group also said it connected Smart Building customers under its master reseller agreement with Telus for smart building solutions in Canada.
Revenue in the latest quarter came in 26% higher than in the first quarter at C$3.046mln against C$2.4mln.
Gross margins remained strong at 64%, largely driven by its strategy of acquiring high-margin innovative tech companies.
Recurring operating expenses were managed to drive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) toward break-even, it added.
The firm's cloud-based AssetCare offering allows mCloud to connect to an ever-increasing number of IoT devices.
And in the latest quarter, mCloud said it "began to further integrate Agnity's technology into the AssetCare platform, extending its reach to new markets and furthering mCloud's capabilities to securely deploy innovative IoT (Internet of things) technologies to its growing customer base".
"During the second quarter of 2018, mCloud remotely monitored and inspected several wind farms and collecting additional blade data and insights. mCloud's continued enhancements to the AssetCare platform have received positive feedback from asset owners in the United States, Canada and China, it added.
Russel McMeekin, mCloud's president and chief executive, told investors: "Q2 was another quarter of robust growth in the aggregate of the technology segments we have been combining to form mCloud's AssetCare platform.
"We remain focused on improving our balance sheet, ensuring we continue to build the high-margin recurring revenue base that is driving us towards profitability.
"Our continued improvement of working capital via capital from the exercise of warrants supports our acquisitions plan.
"We continue to build solid momentum in all aspects of our business and expect a robust second half of 2018 which will position us well for continued growth into 2019."