Special Report: Today Change Financial delivered a record quarter in line  with its growth strategy, as it continues to realise new sales opportunities.

 Global fintech Change Financial (ASX:CCA) has delivered a record Q4 revenue, as it continues to lay the foundation of capitalising on global opportunities for the business.

Change reported a record June quarter revenue of US$2.6 million (around $3.4m), which was underpinned by a number of new licence deals.

Receipts from customers were lower at US$2.1 million compared to US$2.9 million from the previous quarter, but this was due to timing differences in invoicing.

CCA is also well funded, with a cash position at the end of the quarter of US$4m, compared to US$4.5m in the previous quarter.

The drop in cash balance was mainly due to an increase in expenses related to the appointment of new key executives to drive its business strategy.

Meanwhile, CCA’s ARR (annual recurring revenue) remained steady at US$4.4 million, despite the impact of converting a client from recurring revenue to a significant one-off licence payment during the quarter.

“We have had another positive quarter as we continue building the foundations to offer a next generation of innovative banking and payments solutions to our customers,” commented Change CEO Alastair Wilkie.

“We have also finalised our go-to-market strategy, and the year ahead will be an exciting journey for Change as we execute on taking our business to the next level.”

 

Growth in sales pipeline

Change expects its sales pipeline to grow as it focuses on global business development and sales growth strategies.

One of the strategies includes the rollout of its Phase 2 Customer Ready Platform, which will allow it to offer a next generation integrated payment processing and card management solutions platform.

In the March quarter, Changed closed approximately half of the project and licencing opportunities in its pipeline, which resulted in over US$1 million of revenue booked in the June quarter.

These projects were mainly related to upgrade works for existing clients, as well as new licence sales of Change’s payments testing solution to new clients.

In total, a pipeline of 49 sales opportunities were generated as of June 30, which could potentially generate revenues in the quarters ahead.

One of the pipelines closed in the quarter was the licensing agreement entered with Pi Pay, to enable them to use a small selection of Change’s technology to power their mobile payments and digital merchant management platform.

 

Key appointments

During the quarter, Change continued investing in the business by making key appointments, including that  of Tony Sheehan as chief financial officer.

Sheehan is a highly experienced, strategic and influential finance executive with over 18 years’ international experience in the world of banking and finance.

His extensive experience will help the company execute an aggressive growth roadmap as it embarks on a global expansion that includes pipelines in the US, South America, Thailand, Cambodia, as well as in Australia/New Zealand (ANZ).

Additionally, Change also appointed vice presidents of business development for Oceania and North America, all of whom have extensive experience within the global payments industry.

The company will continue to recruit for a senior business development executive to head up its Southeast Asia sales initiatives, as it plans to drive new and existing opportunities in the region.

 

Forward-looking strategy

After an extensive deep-dive into the business, CAA has wrapped up its go-to-market strategy and will present it to shareholders on August 2 at its quarterly webinar.

The  company  is looking to execute on a major market opportunity, with global non-cash transactions projected to grow from US$684 billion in 2019, to US$1.5 trillion in 2025

CAA has developed innovative and scalable payments technology, offering banking and payments solutions to businesses and financial institutions.

Change’s platform effectively provides the critical infrastructure that connects existing licensed banks with modern API- driven brands, such as fintech platforms.

Currently, Change manages and processes more than 16 million virtual, credit, debit and prepaid cards worldwide, serving more than 125 customers in 36 countries.

This article was developed in collaboration with Change Financial, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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