Credit Clear (ASX:CCR) increased revenue to a record $6.1 million for the March quarter, an increase of 88% from the prior December quarter and 117% from the same period last year.
The receivables management provider is now on track to be cash flow positive from July 2022, with projected annual revenue of over $35 million, based on March revenue of 2 .9 million.
This targeted revenue execution rate does not include any anticipated revenue from its recent deal with Techub in South Africa or new customers, which are in the process of onboarding.
Commenting on the quarterly results, Credit Clear chief executive Andrew Smith said the company “has become a leader in the global accounts receivable industry”.
“We have proven technology that clearly differentiates itself from any other on the market. With an end-to-end hybrid collection offering that provides the best solutions at every stage of the collections lifecycle.
He said the restructured management team would be a key success factor going forward: “Our revamped management team has the expertise and connections to bring our technology and services to a global market.”
“As we become profitable from July 2022, we also have positive cash flow to reinvest in research and development to advance our technology and the evolution of our platform.”
Combined with a recent fundraising of $4 million through a stock purchase plan, Credit Clear is poised to transform its financial picture in the second half.
Growth of new customers
During the March quarter, Credit Clear signed 65 new customers in a variety of industries, including financial services, consumer, insurance, utilities, government, commercial credit and automotive.
Some of these clients are still being onboarded to Credit Clear’s platform, which means their resulting revenue will be added in the weeks and months to come.
The company stressed that those customers who were not yet fully onboarded will have a “material impact” on the bottom line.
Acquisition of ARMA and renewed team
Credit Clear’s management team was reshuffled during the quarter following the acquisition of Australasian debt collection services company ARMA.
The $46 million deal resulted in over 400 active customers acquired through the process being ready for Credit Clear to scale its billing and digital communications technology platform.
In the process, former ARMA chief Andrew Smith became managing director, Shane Ashton as operations director and Eddie Smith as group sales leader.
With consolidated growth in Australia, Credit Clear has its sights set on overseas markets for further expansion.
This strategy began with the rollout of Credit Clear’s digital platform for Techub in South Africa last week.
The rollout of Credit Clear’s digital accounts receivable platform replaces a three-month pilot agreement with Techub.
Techub will now accelerate the deployment of Credit Clear’s platform across its US$1 billion debt portfolio.
Techub has confirmed that iSON Xperiences, Africa’s largest BPO service provider, has taken a strategic stake in its holding company CSS Group.
Credit Clear says this is opening up significant new markets in 18 countries, including several African countries, India and the United Arab Emirates.
Credit Clear said it was looking for similar opportunities in other international markets.