- 8common (8CO) anticipates the June quarter to deliver record transaction and recurring software-as-a-service (SaaS) revenue as activity levels have continuously improved
- Based on the fintech company’s prediction, Q4 is looking to contribute between $820,000 to $830,000 in transaction and SaaS revenue, a 14 to 15 per cent increase from Q3 FY22
- In terms of total revenue for the June quarter, 8common expects it to exceed $1.6 million, up 50 per cent against Q3 FY22
- 8common believes the large level of implementation revenues in the June quarter will lead to ongoing transaction and recurring SaaS revenue from FY23 onwards
- Shares in 8common are up 14.1 per cent, trading at 10.5 cents as of 1:11 pm AEST
8common (8CO) expects to deliver a record fourth quarter for transaction and recurring software-as-a-service (SaaS) revenue as activity levels have continuously improved.
The fintech company also attributed a strong pick up in domestic and international travel to driving the record quarter.
Based on 8common’s prediction, the June quarter is looking to bring in around $820,000 to $830,000, which is a 14 to 15 per cent increase from Q3 FY22.
CEO Andrew Bond believes that with the improved activity levels, the company continues to expand its business footprint with over 180,000 users on its platform.
“Our customer led ethos and product offering, coupled with a strong pipeline of Federal Government entities to onboard in coming months under the GovERP work package will continue to drive revenue growth.”
Last month saw the annual revenue per user sitting at $18.12, the highest level seen since pre-pandemic levels of around $20 in March 2020.
“With user numbers expected to increase materially in coming months as the first entities under the GovERP work program go live early in FY23, we are set to deliver further increases in our transaction and recurring SaaS revenue in FY23 and beyond,” Mr Bond continues.
The total revenue for Q4 FY22 is expected to exceed $1.6 million, up 50 per cent against Q3 FY22 as 8common continues to generate implementation revenues associated with the roll out of the GovERP work package.
The large level of implementation revenues in Q4 FY22 is believed to lead towards ongoing transaction and recurring SaaS revenue from FY23 onwards.
8common’s newest prepaid card fund distribution product CardHero had launched with Westhaven in May with first transactions recorded.
The product provides a second revenue stream for the company with a strong outlook as not-for-profits, corporates and government agencies look to a solution for their fund distribution requirements.
“With a solid balance sheet … we are expecting a strong finish for the company in FY22 and further growth in FY23 and beyond,” Mr Bond concluded.
Shares in 8common were up 14.1 per cent, trading at 10.5 cents as of 1:11 pm AEST.