Shares of 7Digital (LON: 7DIG) are surging on Tuesday after announcing two new customer wins for its music platform-as-a-service in the healthtech and wellness sector.
The B2B end-to-end digital music solutions firm said the “new contracts provide additional visibility over full-year revenues and anticipated significant growth for 2021.”
One of the deals is with US-headquartered MedRythms, a digital therapeutics company that uses sensors, music, and software to build evidence-based neurologic interventions to measure and improve walking.
The second company was not named but is creating a music-based health application for people with dementia.
They are both 24-month contracts and consist of upfront set-up fees, recurring monthly fees, and usage-based payments.
Paul Langworthy, CEO of 7digital, said: “These new customer wins are further evidence of the growing commercial momentum across 7digital as we continue to convert our busy sales pipeline into a raft of multi-year contracts with recurring revenues.
“We are proud to support innovative and forward-thinking companies, and this is particularly the case in the emerging wellness space where music is used as an effective form of therapy to treat specific neurological functions and conditions.
“This also builds on our expanding reach across fitness and health brands, with new clients Barry's and Volava announced in recent weeks. These contracts provide us with increasing visibility over our projected revenue growth for 2021 and the delivery of a full year of positive EBITDA for the first time in 7digital's history.”
7Digital's share price is currently trading at 0.99p, up over 13%.
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