- $3.4M revenue booked in Q1FY21 (1% down on PCP), $2.6M from B2B and $0.8M B2C
- Q1 revenue was 40% higher than the prior quarter despite pandemic related shutdowns in New Zealand and Victoria, record sales were booked in September
- Platform integrations revenue continued rising strongly (156% above PCP)
- First revenues booked from Amaysim (ASX: AYS), Australian Digital Health Agency, Sigma Healthcare (ASX: SIG), Village Roadshow (ASX: VRL) and other large enterprise clients
- Net cash generation of $0.5M driven by strong sales recovery, R&D tax incentive and aided by government assistance
- Strong balance sheet with cash at bank $5.2M as at end September, no debt
Leading online integrated screening and verification company, CV Check Limited (“CV1” or “the Company”) (ASX:CV1) is pleased to release its Q1FY21 flash financial figures and report on its quarterly performance.
CV1 Chief Executive Officer, Rod Sherwood, commented, “A resurgence of CV1 revenues was experienced during the past quarter with record sales being achieved for the month of September despite renewed shutdowns across New Zealand and Victoria. Our team’s agility was demonstrated in their effective, measured response to pandemic related developments in those geographies. New client wins were strong throughout the period before accelerating during September while sales to established customers recovered
Strong sales recovery
Revenues recover strongly, record September
CV1 Group revenue was 40% higher than the prior quarter with strengthening momentum as the period progressed. Q1FY21 sales came to $3.4M (1% down on the previous corresponding period (PCP)), with $2.6M in revenue from B2B customers and $0.8M from B2C customers. Sales strength was derived from new client wins coupled with recovering order flow from established customers. The Company set a new sales record for the month of September, driven by a record month in total website users and the highest new account sign ups in over 12 months from both B2B and B2C customers.
As previously announced, part of CV1’s strategy is to deliver growth through platform integrations with providers of other HR information systems and applicant tracking systems. On 30 September CV1 announced a successful integration with RealMe®, the digital identity verification entity operated by the New Zealand government. Two further builds are currently in progress.
Revenue booked through these integrations continues to rise strongly with Q1FY21 sales exceeding PCP by 156%; the average number of checks per order made through integrations also rose, supporting margins.
Notable new customer wins
First orders were booked during the quarter from notable new customers such as Amaysim (ASX: AYS), the Australian Digital Health Agency, Sigma Healthcare (ASX: SIG), Village Roadshow (ASX: VRL) and many other well-known brands. These client wins were aided by the CV1 platform offering a comprehensive range of screening and verification products, the broad number of integrations in place with other key HR technology platforms and the strong performance of our customer engagement teams.
Net cash generation of $0.5M
The significant sales recovery was a primary driver of this positive cash flow outcome and CV1 also benefitted from an R&D tax incentive receipt. As part of their COVID-19 response, governments across Australia and New Zealand introduced a range of
subsidies and entitlements for businesses to provide some buffer against the economic effect of the imposed shutdowns and restrictions on working arrangements. Where appropriate, CVCheck applied for those subsidies and entitlements. These inclusions also contributed to the reported results. The cash balance at quarter-end rose to $5.2 million. CV1 has no debt.
About CV Check Ltd (ASX:CV1)
CV1 is an expanding business with growing revenue streams through the provision of its products to employers, industry associations and individuals via the CV Check brand on its proprietary online platform cvcheck.com. The Company has been operating for more than 10 years and in the process has developed a world-class online platform providing a comprehensive range of people risk management solutions across the globe.