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GPS obsessed

10 April 2016

SCVNGR: A cashflow positive LBS company

scvngr logo SCVNGR: A cashflow positive LBS companyMost location-based application developers are still working out the monetization branch of their respective businesses. The big promise has been location-dependent advertising, but that’s still in its infancy. And while virtual goods are a growing part of monetizing LBS and mobile services, it isn’t really compatible with applications outside of the gaming space.

SCVNGR, a company that provides a platform on which organizations can build games and activities that span entire cities (such as a scavenger hunt), seems to be one of the few companies in the LBS space that is currently cashflow positive. According to Techcrunch, the company has ““well over” $1 million in revenue in its first full year in business, with monthly revenue up 40% month over month for the last six months.” That’s huge, and furthermore, the company now has over 400 clients (many of them large universities) and a 91% client repeat rate. This last metric is probably one of the most important to its business and it’s definitely strong.

Look for SCVNGR to release an API in the near future. It’ll be interesting to see what developers will do with an API that isn’t directly aimed at mainstream consumers like you and me.

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