Blockchain play Kyckr posts record quarterly revenue; shares bounce 11pc
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Regulatory tech company Kyckr has posted record quarterly revenue of over half a million dollars, though customer receipts are smaller than the company forecast earlier this year.
Kyckr (ASX:KYK) — one of the ASX’s few true blockchain stocks — helps financial institutions comply with their Know Your Customer and Anti-Money Laundering obligations by providing them with technology solutions.
Kyckr shares (ASX:KYK) rose 11 per cent on today’s news, hitting an intraday high of 11c.
The company told investors in its latest quarterly report that it had achieved revenue of $548,000, a record, and up 61 per cent on the corresponding FY17 quarter, driven by an 87 per cent rise in online revenue.
But customer cash receipts, which totalled $490,000 for the September quarter, were lower than Kyckr’s forecast earlier in the year.
The ASX hit Kyckr with a please explain earlier this year after the company showed negative operating cash flows in its March quarterly.
Kyckr responded by saying its estimated cash outflows at the time did “not include cash from customer receipts which we anticipate will increase this quarter [June qtr] to circa $600k”.
The June quarterly showed $475k in customer receipts, down on the previous quarter.
Cash at hand increased slightly in the September quarter, rising from $4.6 million to $4.8m.
The company also says it is investing in staff, with new members joining the development team during the September quarter, as well as a refresh of its website and expanding conversations with key customers to overseas targets.