It’s ASX quarterly reporting season again, which means the ASX market announcements page has become increasingly flooded with earnings lodgements. But there’s no time like the present to dig on in and see how everyone’s been doing so far this financial year…


Sezzle (ASX:SZL)

Stockhead’s Eddy Sunarto yesterday reported BNPL stock Zip (ASX:ZIP) recorded some healthy numbers and strong growth for Q1 FY22 in a positive for ASX quarterly reporting season.

He posed the question is this the start of the BNPL turnaround we’ve all been waiting for? Today it was time for Sezzle (ASX:SZL) to report its Q1 results, which were a little more sluggish but investors still reacted favourably with the share price  up 2.80% in morning trade.

SZL reported underlying merchant sales (UMS) for Q3 FY22 rose 0.6% QoQ to US $421.5 million (A$655.3m). Total income was up 4% QoQ to US$30.4m (A$47.3m), which the company said representes a 23 bps QoQ improvement as a percentage of UMS.

The gap between total income less transaction related costs and adjusted operating expenses narrowed from the peak level of a negative US$24.5m in Q4 FY21 (average monthly US$8.2M) to a negative US$3.5m in Q3 FY22 (average monthly US$1.2m).

Sezzle has announced several key initiatives in 2022 anticipated to be fully rolled out by Q1 FY23, which it forecasts will generate US$60.0M in annualised revenue and cost savings.

The Sezzle share price has fallen ~82% year to date.


iCollege (ASX:ICT)

In another positive for ASX quarterly reporting season vocational training provider saw its share price up ~5% today after delivering favourable Q1 FY23 results on the back of a return of international students.

ICT recorded quarterly cash receipts of $27.3 million for Q1 FY23, up $23.2 million on pcp. Operating cash flows of $7.7 million, up $8.5 million on PCP  and a closing cash balance at the end of September 2022 of $35.2 million, including term deposits of $3.1 million, an increase of $5.0 million over the balance as at June 30, 2022.

There were no significant changes in the activities of iCollege in Q1 FY23. However, iCollege launched its Greenwich English College and Greenwich Management College brands into the Brisbane market in July 2022 and said it had been extremely pleased with early trading performance.

There are more than 100 new actively studying Greenwich students in Brisbane and that number is expected to increase to more than 300 students by the end of the 2022 calendar year.

iCollege has  secured a lease over a second full floor in the building of its Brisbane campus to service the expected strong growth in student numbers and is expected to operate from February 2023.

The company is also launching operations of its Greenwich English College and Greenwich Management College brands at the Gold Coast in January 2023.

Courses will initially be delivered at the existing iCollege Gold Coast campus and online, with a search for larger premises underway. It will also launch the Greenwich Hospitality College sub-brand to international students in late 2022.

iCollege is confident it will achieve strong growth in the Queensland market in FY23 and expects that future revenues generated in Queensland will be substantial to the consolidated group.

The company said the re-opening of international borders and a return of foreign students has boosted its numbers with more students enrolling in their English language studies before progressing onto other vocational and educational courses the company offers.

The ICT share price is up ~92% year to date.


Mercury NZ (ASX:MCY)

The New Zealand energy provider Mercury has announced it has revised its FY23 EBITDAF guidance up $40m to $620m, Normalised EBITDAF also increased by $30m to $795m after adjusting for the non-cash unwind of acquired swaps relating to the Norske Skog, Tilt and Trustpower transaction.

The company said the lift in performance is largely due to higher FY23 hydro generation, now forecast at 4,5000GWh (previously 4,350GWh), higher yields in commercial industrials sales and improved trading results.

In its quarterly operational update also released today Mercury said it now includes the impact of the Trustpower retail business, which it acquired in May resulting in higher mass connections, volumes and prices versus the prior period.

As Stockhead’s Emma Davies recently reported the company has four wind farms, and in December commissioned the northern sector of the Turitea Wind Farm, which will be the largest in the country once built.


XPON Technologies Group (ASX:XPN)

Marketing tech player XPON has reported ARR of $18.2m as at Sept 2022, up 11% on June 2022 levels, and up 66% YoY.

XPON also recorded quarterly revenue of $4.3m, up 16% QoQ and 44% YoY, while revenue retention was up 12 ppts QoQ and 55 ppts YoY to 172%.

The company also announced record quarterly gross profit of $3m, an increase of 22% QoQ and 61% YoY, while gross margin continued to expand to 69%, up 3 ppts QoQ and 7 ppts YoY.

Recurring revenue of 99.8% for Q1 FY23, up 1.8 ppts from Q4 FY22 and up 12% YoY. XPON landed 10 new customers, while 14 existing customers expanded during the quarter. Net cash outflows from operating activities improved by $1.3m from Q4 FY22 to an outflow of $1.3m in Q1 FY23.

Cash balance of $6.9m was down from $8.2m as at 30 June 2022 but the company said it was on-track for continued investment in growth and achievement of targeted cashflow break-even in FY24.