M2M specialist Numerex has announced that its customer base has surpassed the 2 million mark, with surging growth providing evidence of the current momentum in the M2M industry.
The company, which provides M2M services and technology for enterprise and government customers worldwide, says that it took several years to reach the 1 million mark but only two years to double its customer base from that level.
During 2012, Numerex (Atlanta, GA, USA) grew its subscriber numbers at a rate of 30% to end the year with 1.893 million in total, adding 135,000 customers in the last three months of the year, compared with 93,000 during the same period of 2011.
Numerex attributes its success to the popularity of its ‘service as a platform’ approach, which it says has now been adopted in more than 50 vertical and ‘sub-vertical’ markets.
“The strategic direction of the company w ill continue to be centered on on-demand, interactive services and customer care,” said Stratton J. Nicolaides, the chairperson and chief executive of Numerex, in a statement accompanying the news.
The announcement followed the recent publication of full-year results by Numerex, showing a 14% increase in recurring revenues between 2011 and 2012, to $44 million, and a 61% rise in earnings, to $2.9 million.
“We expect to grow our subscription base during 2013 within a range of 27% to 32%, which we anticipate will deliver an 18% to 23% growth rate in subscription-based recurring revenue,” said Nicolaides.
One concern for the company is the pressure on the embedded device and hardware margin, which shrank from 16.8% in the last three months of 2011 to 6.7% in the same period of 2012.
Numerex says the decline was “driven by promotional costs associated with the introduction of new products”.
Like other vendors facing a squeeze in the fiercely competitive hardware business, Numerex has been expanding quickly into the services area.
The company now claims to offer a range of managed, cloud-based M2M solutions that integrate a variety of cellular, satellite and other wireless technologies.