- Human resources management company Xref (XF1) is trading higher after reporting a record revenue during the third quarter of the 2021 financial year
- The company reported group revenue of $3 million, the majority of which came from credit usage on its Xref platform and a smaller portion from its ID verification subsidiary RapidID
- Sales also grew to a record $4 million, bolstered by new clients including the Australian Prudential Regulation Authority, and growth in RapidID
- The company’s cash expenses for the period totalled $3.5 million, and at the end of March it had a cash balance of $6.2 million, approximately $500,000 less than at the beginning of the quarter
- Executive Director and CEO Lee-Martin Seymour said the company is well-placed to achieve its first cash-flow positive quarter in the final and busiest quarter of the financial year
- Shares are up 16 per cent at 29 cents
Xref (XF1) is trading higher after reporting a record revenue of $3 million during the third quarter of the 2021 financial year.
The human resources management company reported $2.7 million in revenue from its platform, which it records when customers use credit, and $300,000 from its ID verification subsidiary RapidID.
Sales also grew in the March quarter to a record $4 million, up 46 per cent on the previous quarter. The addition of new clients, including the Australian Prudential Regulation Authority, accounted for 13 per cent of sales.
RapidID also executed a growing portion of sales, increasing its gross revenue by 608 per cent on the prior corresponding period and contributing to 24 per cent of Xref’s total sales.
The company’s cash expenses for the period totalled $3.5 million, and, at the end of March, it had a cash balance of $6.24 million, compared to $6.73 million at the beginning of the quarter.
Executive Director and CEO Lee-Martin Seymour said the company is well-placed to achieve its first cash-flow positive quarter in the final three months of the financial year.
“Our annualised revenue run rate generated by credits and checks used by existing clients is now over $15 million and as we enter the busiest quarter of the year we are excited about being very well positioned to achieve our first cash flow break-even quarter by the end of this financial year.”
“In addition to sales growth and cost control we are now also heavily focused on delivering our newly built and extended verification platform in Q1 FY22 which will help us scale our business even further,” he added.
Shares are up 16 per cent at 29 cents at 11:53 am AEDT.