ASX-listed Credit Clear reports record revenue and cashflow
Credit Clear have delivered record revenue of $11.5 million, up 28% on pcp, achieving the top end of guidance of $40-$42 million for FY24. Revenue growth was driven by existing tier-1 clients where the company is winning more share of wallet from existing clients and revenue building from new clients.
Credit Clear has achieved its Underlying EBITDA guidance, which was upgraded in June to in excess of $3.7 million and is tracking towards Underlying EBITDA of approximately $4 million for the year.
The company produced its fifth consecutive quarter of positive cash from operations with $1.8 million in Q4 ’24. Cash from operations now stands at $3.6 million for FY24. The company had $13.1 million cash at bank on 30 June 2024, a $1.1 million improvement year-on-year and $0.7 million improvement QoQ and is in a strong position to fund growth opportunities, including the potential to enter international markets.
Payments made via the high-margin digital platform grew 65% on pcp to $33.2 million, surpassing $10.0 million collected on the digital platform for each month of the quarter.
Credit Clear CEO Andrew Smith (pictured), said, “Record revenue and a controlled cost base have helped to deliver sustainable cash from operations for the past 15 months (five quarters). Having grown the business through the seasonally weaker Q2 and Q3 quarters, we have now seen the expected uplift in the seasonally stronger Q4 with record revenue of $11.5 million, and we’re in an excellent position to capitalise on growth into Q1’25, with the first quarter of the financial year typically being one of our strongest quarters seasonally. Our ongoing success in winning new clients has been extended, and it is particularly pleasing to see two more companies achieve tier-1 status.
“Finally, the continued uptake of AI-driven digital engagement strategies by many of our largest clients is achieving better collection rates, while at the same time improving the end customer’s experience – a critical outcome as financial stress continues to rise in our community.”
