Monitise’s New Business Model Changes 2014 Earnings Forecast (July 8, 2014)
Calling it a transition year, U.K.-based Monitise announced today its full year revenue for 2014 will fall short of expected growth because of a change to its business model. This year’s revenue growth is expected to be between £95 million (US$162.7 million) and £97 million ($166.1 million), according to the company. The roughly 32 percent year-over-year growth compares with 40 percent growth cited in previous guidance.
Earlier this year, Monitise announced it was working with MasterCard to develop and deploy mobile wallets and digital payments and MasterCard would make a minority investment in the company. Monitise said it would use those funds to change its business model, moving away from charging licensing fees to its financial institution clients in favor of a subscription model, resulting in a long-term revenue stream but lower up front revenue. Monitise today cited a faster-than-expected shift to the new subscription-based business model for the lower growth forecast.
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