Summary highlights:
- Cash positive by +$0.2 million in Q2 FY19 (ex-cap raising); cash at quarter end $2.8 million
- Cash receipts of $3.1 million in Q2 FY19 (in line with prior quarter) versus $2.8 million in pcp
- 71% ($2.2 million) of total revenue from B2B customers – over 30% growth on pcp
- Placement of net $1.2 million to sophisticated, HNW and new institutional investors
- $0.6 million R&D incentive payment
- Strong growth from corporate clients from recently launched automated reference check platform
- Product diversification and further platform-based automation expected to deliver strong organic growth
- Investor conference call to be held on Wednesday 6 February 2019 at 11.00am AEDT/ 8.00am AWST
For full results published to ASX check out the “CV1 Maiden Cashflow Positive Quarter” and announcements which can be found on our investor page here.
Our Chief Executive Officer Rod Sherwood, said:
“We are pleased to have achieved our maiden cash flow positive quarter, which is a direct reflection of the growing stability within the Company’s revenue base. Our efforts to prudently manage costs and drive efficiency gains across the business delivered significant improvements during the quarter, and we expect to see the full extent of these initiatives continue to flow.
CV1 is in excellent shape and poised for a strong CY 2019, backed by a solid cash balance and sustained cash flow improvement. Near-term growth is expected to be underpinned by further product diversification,
across a heavily fragmented sector, with a specific focus on strengthening revenue quality and diversification.
Driving organic growth within our B2B division remains a priority and that is delivering significantly higher margins and ROI, which were reflected in the December quarter.
CV1 is also continuing to roll out the automation of our entire product suite and we expect this to add significant value and improved scalability over the coming months. Strong growth in corporate client engagement resulted from the successful launch of our automated reference check platform and our open API continues to provide new business opportunities.
CVCheck enters this calendar year with confidence, and we look forward to reporting further updates on the above initiatives during the March quarter.”
