ASX Quarterlies: First cab off the rank as earnings season begins – momentum still strong
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It’s quarterlies season again as the ASX market announcements page becomes increasingly flooded with the first wave of lodgements.
Australian receivables management solution provider Credit Clear has achieved a cash flow positive quarter in Q1 of FY23 after generating $531k from operating activities.
The company recorded revenue of $8.9m in the quarter, a record high up 162% pcp. Annualised revenue (ARR) run rate was $35.6m based on Q1 FY22 revenue.
During the quarter, CCR signed a record 99 new clients with an expected $3.4m in additional revenue over the next 12 months.
CCR’s strong cash flow result was driven in part by the rapid growth in digital payments where higher gross margins exist. The company received $15.3m in digital payments during the quarter, up 19% QoQ and 101% PCP.
There is an ongoing focus on the identification of unprofitable revenue/clients and cost management across the group which has resulted in growth.
This has improved CCR’s profitability, with further cost savings and efficiencies expected from the integration of its collection and legal businesses expected to be realised this financial year.
Other highlights in the quarter include progress in South Africa where CCR expects to ramp up activity in Q2 with further deployment of its digital platform across significant portfolios of debt.
In the UK, there is encouraging progress with a potential JV partner with a large multinational BPO and associated collection agency.
Credit Clear was also awarded the “Best Use of AI by a Fintech” at the 7th Annual Australian Fintech Awards.
It was the second year running that Credit Clear collected the award, demonstrating its advanced use of AI (artificial intelligence) in the collection industry.
CCR has also bolstered its management team with the board appointment of Paul Dwyer, who has been appointed as a non-executive director of the company effective immediately.
Dwyer founded ASX-listed PSC Insurance Group where he still serves as a non-executive director and deputy chairman.
The payment fintech’s strong momentum has continued into FY23 with solid performance across both its Pay Now and Financing transaction volumes.
Its US Pay Now Total Transaction Values (TTV) was up 34% to US$242 million (versus Q1 FY22: US$181 million), driven by firm sign-ups and organic growth.
The company also saw strong growth in Financing in both the US and Australia, with US TTV (total transaction values) up 26% to US$4.8 million, and Australia TTV up 10% to $8.9 million.
During the quarter, Quickfee retired its BNPL product in the US, following a refocused US strategy solely on growing the core professional services business.
The company’s search for a global CEO search is progressing following Eric Lookhoff’s resignation.
QuickFee says it remains on track to achieve run-rate profitability by end of FY23 within existing cash and borrowing facilities.
The cancer diagnostics company says it is making big leaps to drive the adoption of Cxbladder tests globally, which is now delivering early results.
In Q2, the volume of Cxbladder tests processed at the company’s US and New Zealand laboratories has risen strongly against the first quarter and the prior year, with the increase being mirrored by an increase in the number of US clinicians ordering its tests.
PEB says it will continue to advance its clinical evidence generation program to strengthen the case for Cxbladder to be included in global standards of care and gain coverage by healthcare payors.
The developer of security, surveillance and warning solutions has delivered record Q1 FY23 revenue of $1.657m, up 15% from Q1 FY22 and representing the highest first quarter on record.
The company’s sales pipeline has grown to $10.1m at 3 October, underpinning expectations of continuing growth into Q2 FY23.
Recurring revenue for the quarter, comprising subscriptions and rental, was $932k (56% of total), equivalent to a yearly run rate of $3.73m.
The company is now eligible for an Export Market Development Grant (EMDG) with the application now pending final approval.
Upon approval, the grant will allow Spectur to explore the crucial US market.
Spectur is well funded and at the end of Q1 FY23, it had $2.808m of cash with $1.1m of drawn debt from its credit facility.
The funds administration company says its total funds under administration (FUA) as at 30 September was of $41.4 billion, up 2% from June’s $40.5 billion.
For the quarter, there were net inflows of $659 million, up 115% in the quarter to September.
Praemium’s Powerwrap platform has achieved its best flows result in three quarters. This demonstrates that advisers have embraced the necessary enhancements and integration implemented over the course of the prior year.
During the quarter, Praemium also commenced group-wide Lean Six Sigma program to further improve workflow efficiency by focussing on customer experience and empowering teams.
The company commenced its share buy-back on 5 September with $2.1 million deployed and 3 million shares purchased as at last market close.
COG’s underlying trading performance for the quarter was $6.1 million of NPATA, which represents an increase of 30% on the pcp.
It was another record result as both its broking and funds management segments continue to perform strongly in what is normally the softest trading quarter and in the face of a higher interest rate environment.
The company says the broking and aggregation segment result was particularly impressive given continued supply-chain constraints on acquiring new vehicles and equipment.
“We start this next quarter with a very strong forward order book reflecting strong activity in our core markets of infrastructure, mining, heavy haulage, and agriculture,” said COG CEO, Andrew Bennett.
The company reported a September Monthly Recurring Revenue (MRR) of $346K, which represents an increase of 34.5% on pcp.
For the September quarter, Harvest achieved record quarterly revenue of $887K, as Infinity sales momentum continues to build, boosted by recently announced new customer wins and a recurring flow of work for existing customers.
Key deals in the quarter includes a two-year contract for supply of Harvest’s ultra-low-bandwidth Nodestream technology to play a key role in supporting remote operations for an EU defence force.
In terms of immediate outlook, Harvest says sales momentum has continued to build since the end of September, evidenced by a growing opportunity pipeline and further customer wins, including an initial order (value of approximately $234K) secured with International Rescue (IR).
IR is a global aid organisation focused on rapid deployment of first response to emergency and disaster events across the globe.
Whilst economic conditions are expected to remain challenging, Harvest says it remains cautiously optimistic of continuing to grow its sales funnel and increase revenue in the coming quarter.
The dating app company reported quarterly customer cash receipts of $946k, up 12% quarter-on-quarter and up 16% year-on-year.
This was mainly driven by cash receipts in Hong Kong ($727k), versus $582k in the previous quarter. Singapore and Bangkok contributed the rest.
The company says it will selectively expand into new markets using capital efficient go-to market strategy powered by online marketing channels, primarily Google and Facebook.
Potential target for new markets in FY23 include London and Sydney.
The Love Group’s main online dating brand is the Lovestruck app and website, which primarily targets singles from age 30 to 60 that are seeking long-term, committed relationships.
Online broker Selfwealth reported a record quarterly revenue, with its quarterly operating revenue increasing 24% quarter-on-quarter to $7.15m, up 30% year-on-year.
Active traders on its platform increased to 127,862, with assets held on the platform increasing to $7.7 billion.
During the quarter, Selfwealth has implemented various technology initiatives including investing in mobile upgrades, IT enhancements and process improvements to scale its cost base and improve operating efficiency over time.
The company has also reduced its cash burn to $845k (down from $1.8m in Q4 FY22) on increased revenue and a stable fixed cost base.
CV Check announced its 9th consecutive cash flow positive quarter, with Q1 FY23 revenue of $6.9 million (up 9% on pcp).
Q1 FY23 SaaS revenue was $0.7 million, up 23% on pcp.
During the quarter, the company announced a strategic partnership to introduce biometric identity validation, automation and AI across its operations.
It also announced and commenced an on-market buyback during the quarter, with a total of 1,525,902 shares bought back by CV Check for a total consideration of $166,779.
CV check finished the quarter in a strong financial position, with cash at bank of $11.1m and retained a robust balance sheet as it remains debt-free.
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