- Spenda (SPX) falls short of quarterly revenue expectations for the three months to the end of March, citing COVID-19 restrictions and floods in eastern states for the lull
- The company grew customer receipts by just two per cent to $630,000 over the March quarter compared to $615,000 the quarter before
- The company says it has transitioned its core business model away from project-based work to a model that focuses on annual recurring revenue (ARR)
- Despite the dip in revenue, Spenda grew its lending portfolio by 47 per cent over the March quarter, with a gross client loan book of $11.9 million at the end of March
- Shares in Spenda are down 16.67 per cent to 1.5 cents each at 1:20 pm AEST
Spenda (SPX) has fallen short of quarterly revenue expectations for the three months to the end of March, citing COVID-19 restrictions and floods in eastern states for the lull.
Quarterly cash receipts grew 2 per cent to $630,000 over the March quarter compared to $615,000 for the December 2021 quarter.
While this is still more than double the $300,000 tabled over the March 2021 quarter, Spenda said it was expecting stronger revenue growth over the start of 2022. The company said a slow economic recovery from COVID-19 and trade delays from floods along the east coast of Australia impacted its bottom line.
Spenda has transitioned away from all project-based works and has moved to a business model that focuses on annual recurring revenue (ARR), which the company said would provide greater clarity over its future cash flows and a clearer pathway to profitability. ARR now comprises 94 per cent of the company’s revenue.
The company said it had also taken significant steps since its December quarterly report to move its core business toward profitability through the commercialisation of the Spenda product suite.
Despite the dip in quarterly receipts, Spenda grew its lending portfolio by 47 per cent over the March quarter, with a gross client loan book of $11.9 million — up $3.8 million from December.
Moreover, the company also continued to drive payments growth with flows
reaching $12.9 million for the period.
Spenda has said it expects its June quarter to be anchored by the delivery of new payment and lending flows secured towards the end of the March quarter and further convergence of lending and payment services.
It is currently developing further releases of improved versions of Spenda Accounts Receivable and Accounts Payable software to support wider and speedier adoption of the company’s services, also expected to be reported in the June quarter.
SPX shares were down 16.67 per cent and trading at 1.5 cents as of 1:20 pm AEST.