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ASX Quarterlies: Tech powers ahead in strong finish to reporting week
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It’s quarterlies season as the ASX market announcements page becomes increasingly flooded with lodgements. The last day for companies to submit reports is the last business day of the first month after the prior quarter. If they don’t, they risk suspension (and consequential panic and anger from shareholders).
And so as we come to the last business day of July and the Commonwealth Games get underway in Birmingham here’s some of the good which have caught our eye today.
The Aussie-listed, Israel-based fintech saw its share price shoot up by more than 47% to 5.6 cents today after announcing transaction volumes of $5.637 million in Q2 FY22, up 153% on Q1 FY22.
H1 FY22 Transaction volume of $7.870 million was up 8% on prior corresponding period (pcp) of $7.267 million in H1 FY21.
W2V grew its numbers of SMB clients by 13% from 750 to 850 during the quarter and had a cash balance of $2.116 million as on June 30 2022.
The company also initiated rollout to first four industry sectors after partnering with Railsbank (now called Railsr) and Mastercard to launch the world-first spending card automating VAT/GST returns for SMB and the enterprise market.
It signed new multinational enterprise customers including TikTok for use by 7000 employees in the UK, Europe and Asia Pacific, out of its 27,000 person global workforce.
W2V now has raised its enterprise customer total by 25% in the past 12 months to 215. The company also raised $1.090 million via oversubscribed share placement.
It has also been approved for a $625,000 funding grant to support research and development, initial marketing, and commercialisation of its Smart Spend Debit Mastercard.
The Aussie biotech announced cash receipts from customers of $500k for the June quarter, with full year cash operating revenues of $6.2m as it eyes a dual listing on the NASDAQ.
The company’s cash position as at end of June 2022 was $5.2m, with sufficient cash and significant global partnering opportunities anticipated to generate revenue to support future cash flow.
Medlab expects a $3.5M R&D grant in September/October and licencing revenue from potential partnering deals in the next quarter, with royalties expected November.
Shareholders this week showed overwhelming support for Medlab’s planned dual NASDAQ listing. At an EGM two pass resolutions were strongly passed. The first resolution passed with 99.18% of votes in favour and the second passed with 99.27% of votes also in favour.
The metals tech company announced revenue for Q4 FY22 was $1.4 million with total revenue for the 2022 financial year (FY22) of $2 million, an increase on the prior financial year’s revenue of more than 200%.
Total cash receipts for Q4 were $1.2 million including receipts from customers of $667k and $513k in R&D tax incentives.
Net operating cash outflow for the quarter was $200k with cash on hand as on June 30 of $2.9 million, representing more than 14 quarters of available funding based on the current quarter’s outflow.
The company said it continues to deliver against its multi-phase growth strategy, built upon accessing immediate, medium, and longer-term value drivers.
During the quarter AL3 sold and installed three of its Arcemy units, achieved several contract wins, and continued ongoing contract negotiations with Tier 1 companies.
Peppermint Innovation (ASX:PIL)
The Aussie-listed fintech has announced it was granted its Electronic Money Issuer (EMI) licence by the Central Bank of the Philippines in one of the biggest regulatory milestones ever achieved by the company during the June quarter.
PIL said the EMI licence allows e-wallet services to be delivered via its bizmoto mobile app to any Filipino – not just bizmoto agents.
The company said the EMI licence significantly expands opportunity to reach micro-entrepreneurs and provide digital payments for their businesses, as well as facilitating strategic partnerships with global leaders in digital payments.
PIL had a strong 102% growth in total bizmoPay loans approved during June Quarter and finished with $5.5 million at bank.
The Aussie biotech announced it progressed its pivotal Phase I/II clinical paediatric study in Autism Spectrum Disorder (ASD) during the June quarter.
The study had been designed to rigorously assess the safety and tolerability of its proprietary cannabis strain NTI164 in a dose-escalation regime and to evaluate behaviours, focus and cognitive parameters using validated neuropsychological tools.
Post quarter end, NTI said it received breakthrough results with 93% of patients showing symptoms improvement relating to the severity of illness after 28 days of daily treatment with NTI164.
As of 30 June 2022, NTI had a cash balance of $1.89 million. The company recorded gross total operating expenses (excluding revenue sources) of $1,112,000.
Leading SME-focused finance platform Propell enjoyed a strong Q4.
There was continued growth in platform customers, increasing 30% from 31 March to more than 2,150, marking the sixth consecutive quarter of growth of at least 30%.
Propell also saw a record quarter for lending, delivering a 35% increase on Q3 and a 320%+ increase on the pcp.
This growth was mainly supported by the launch of a new Line of Credit product, and improvements seen in platform customer financials and sentiment.
Apart from rising borrower numbers, lending volumes were also driven by an increase in average loan size, a key indicator of customer quality.
Propell’s average loan size has now increased to just under $20,000 (+40% increase QoQ, and over 278% higher vs pcp).
This resulted in lending volumes expanding to $3.4m (up 35% QoQ, and 320% vs pcp), with May and June representing largest months on record.
The company raised $2.3 million via convertible note during the quarter, with funds expected to be used in scaling up the business through the expansion of the lending book.
Propell says its key focus remains on achieving cashflow breakeven in the medium term.
The company believes the future is digital, and with its core technology build now completed, it will turn its focus on revenue growth.
At the end of the quarter, Propell held $386k in cash, with receipts up to $197k in the quarter (99% higher vs Q3).
Wellnex has delivered significant revenue growth in the quarter across the business with strong uptake in the company’s wholly owned brands.
The company’s own brands, including Wakey Wakey and The Iron Company, have spearheaded improved margins and strong, sustained sales growth.
In the June quarter, cash receipts were $4.7 million, up 31% compared with the pcp.
There was also an additional $4.6 million received in purchase orders for the liquid paracetamol product, with receipts to be received in the September quarter.
Following quarter end, Wellnex also saw strong sales through the month of July, and the pipeline of brands to be launched in the coming months is anticipated to drive further growth this quarter.
A TGA approval process was initiated by Wellnex to obtain a Schedule 3 (S3) registration to sell medicinal cannabis products without a prescription through the pharmacy channel by the end of 2023.
The TGA approval will fast-track Wellnex to market with cannabis-based products through its 50/50 joint venture with OneLife Botanicals.
Meanwhile, net operating cash loss for the period was $3.48 million, driven primarily by the investment in inventory to mitigate supply chain issues.
Cash was also spent for marketing in preparation of Mark Wahlberg’s Performance Inspired brand launch, which will commence ranging in Chemist Warehouse nationally in October.
Wellnex also completed a cap raise via placement of a $6.2 million convertible note at a 21 cent conversion price per share, with a coupon rate of 9% per annum.
The fresh funds have strengthened the company’s balance sheet, and enables Wellnex to execute on its business objective to bring new and innovative brands and products to the growing health and wellness market.
Medtech Opyl has closed off another positive year as revenue continued to increase for the third year in a row, largely driven by the evolution of flagship product, Opin.
Opin’s outstanding patient recruitment results, expanded services capabilities, and new user features are attracting considerable interest from customers.
In the past eight weeks, there were new global biopharma and medical research institute customers signing to the Opin platform.
Opyl has continued to invest in refining the Opin platform, improving functionality and user experience for both patients and customers. The scheduled refresh was delivered ahead of plan this week.
The Opin patient database has now shown a 790% increase in patient registrations each week since January, and a parallel drop in cost per acquisition per patient (down 196%).
Opyl delivered full year receipts from customers of $998k, up from $710k in FY21.
The company closed Q4 with $786k in cash, and has total available funding at the end of the period of $1.136 million.
This was mainly a result of securing a R&D forward funding finance facility of $350k from FIFO Capital that has been put in place at a very low cost to the company.
Full year net outflow from operating activities were $1.518m, an increase from $635k in the previous year as a result of planned increase in staff costs, costs of sales and investment in product development.
The plant-based beverage company was up 17% today after reporting that its Q4 FY22 revenue was $135.7m, up $12.4m or 10.1% QoQ.
Dairy and Nutritionals revenue for the quarter was $93.1m, up $8m or 9.3% QoQ.
Dairy sales to Southeast Asia performed strongly QoQ but with domestic sales broadly flat, reflecting the normalisation of trading conditions that started in Q3.
Plant-based beverages revenue meanwhile was $42.9m, up $5.1m or 13.4% QoQ.
Plant-based sales in the out-of-home market rebounded in the period compared to Q3, with domestic market channels such as cafés returning to more normalised operations and consumer demand as COVID-19 restrictions eased.
Sezzle was up 11% today and over the past week, its share price has risen by almost 300%.
Sezzle’s Underlying Merchant Sales (UMS) for Q2 increased 1.9% YoY to US$419.1m.
Total income grew 6.8% YoY to US$29.3m, representing 7.0% of UMS, while fee income represented over 80% of total income.
Active merchants rose 19% YoY to 47,900, while active consumers stood at 3.4 million at quarter end (up +18.2% YoY).
The top 10% of Sezzle users (as measured by UMS) remained highly engaged, transacting 46x on average over the trailing 12-month period ended 30 June.
Sezzle Canada continued its strong performance in Q2, as UMS improved 52.9% YoY, active consumers increased 68.2% YoY, and active merchants rose 58% YoY.
In June, Sezzle launched Sezzle Premium, a subscription service providing consumers a number of additional features and benefits related to the company’s core pay-in-four product.
Sezzle says it has taken several actions representing over US$40 million in expected annualised revenue (ARR) and cost savings to improve free cash flow and accelerate its path to profitability.
Sezzle share price today:
At Stockhead we tell it like it is. While Medlab Clinical, Neurotech, Peppermint Innovation, Way2Vat, Wellnex Life, Opyl and Propell Holdings, are Stockhead advertisers, they did not sponsor this article.
