Cirralto doubles revenue growth in turnaround quarter which saw shares rally 600pc
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Special Report: Following the launch of SpendaCollect, Cirralto is positioning for growth in the global B2B payments landscape.
B2B payments platform Cirralto (ASX:CRO) released its quarterly 4C filing this morning, highlighting strong revenue growth and a platform for further expansion.
The company booked revenue of $179,745, a gain of 118 per cent from the previous quarter.
In addition, average quarterly revenue per user rose by 57 per cent, from $21.17 to $33.40.
The strong gains followed the launch of Cirralto’s SpendaCollect platform in July — a market leading software technology that streamlines the payment collections process between businesses and customers.
Cash receipts from customers rose by around 30 per cent to $156,000, and Cirralto finished the quarter with a stable cash balance of around $2m as at September 30.
The SpendaCollect launch highlighted a “transformative” quarter for the business, Cirralto said, in what marked a “critical strategic pillar in our commercialisation strategy”.
“Since its release, SpendaCollect has gathered significant momentum in the broader market,” the company said.
“Given the current global economic situation brought about by COVID-19, the product gained immediate interest from current customers and was featured in the West Australian and several industry publications.”
That momentum didn’t go unnoticed by investors, as CRO started the quarter at 0.5c and closed on September 30 at 3.5c – a quarterly gain of 600pc.
And the stock has continued to trade higher into Q4, holding comfortably above 4c into the end of October.
Looking more broadly across the business, Cirralto flagged increased HR activity with three new staff hires and another 29 job ads placed across channel management, inside sales, marketing, development and the finance.
The company is working towards the completion of its acquisition of Appstablishment, which it expects to be finalised before the end of the year.
Commenting on the results, Cirralto CEO Adrian Floate highlighted the company’s topline growth, which was achieved with a more robust financial structure.
“I am really pleased with the results out of the quarter. Revenue growth is at 118 per cent and cash collections are up 30 per cent,” Floate said.
“These results are in-line with what we expected, given our consistent month-on-month growth in customer numbers is sitting at around 10 per cent.”
Floate added that the company is already seeing positive flow-on effects after executing on a “balance sheet clean up”
“In our $1.1m in cash outflows, we have eliminated the interest costs and paid out all historical trade creditors,” he said.
“We’ve also dealt with 90 per cent of the expected one-off costs for the merger, and the compliance costs for our new payments services.
“Removing major operating costs from the business will stand us in good stead into the future.”
And as growth scales up, Cirralto is deploying additional resources in business development with a marketing plan tailored towards the finance operations of client businesses.
With a global market opportunity, it is looking to build on the momentum it established in Q3 as it looks to capitalise on the “Uber-fication” of the multi-billon dollar payments industry.
This article was developed in collaboration with Cirralto, 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.