Mobile money platform Monitise has cut its annual revenue growth estimates for the second time, forecasting growth of between 31 and 33 percent, down from earlier projections of 40 and 50 percent earlier in the year. This was enough to cause shares to drop 15 percent in early morning trading.
This revenue shortfall is being attributed to a change in the firm’s business model, as the firm moves from a licensing fee model to more of a subscription/recurring revenue model.
The new revenue restatement will result in an annual EBITDA loss of roughly $54 million dollars.
Former Visa exec and Monitise Co-CEO was reported to have said that the company’s decision is to forego short term revenue in favor of this longer term strategic priority.
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