ASX-listed fintech 8common receives $575,000 contract under Australian government GovERP rollout

Fintech company 8common has announced that it has received its third significant contract under the Australian Government GovERP deed.

Expense8 is the exclusive provider under the Travel and Expense Management Value Stream for the Shared Services Program which includes up to 150,000 employees across 90 mandated and 68 opt-in Government Entities (i.e. 158 entities in total).

The $575,000 (including GST) contract covers the development of the Whole of Government Template for Travel and Expense Management (‘the Template’). The Template is a technology solution designed by 8Common specifically for the GovERP program to provide a unified solution for the whole of Government Travel and Expense management requirements. The Template will utilise Expense8 technology with greater functionality specifically designed for Federal Government. The Template will be deployed for all agencies that transition under the GovERP program including all agencies currently using GovERP version of Expense8.

The first 7 agencies under the GovERP program have gone live utilising the GovERP version of Expense8. These agencies incorporate over 3,000 users and the associated SaaS transaction and recurring revenue commenced in 1Q FY23.

This agreement takes the total value of signed contracts to date under the GovERP to over $2.0 million (including GST).

8common CEO, Andrew Bond said, “We are very excited to see the first seven agencies under the GovERP program go live. The GovERP work program represents a significant driver of current and future revenue for the company with the potential for over 100,000 new users to utilise our solution that currently delivers an average ARPU of $47.

“The future work package to develop the Whole of Australian Government Template for Travel and Expense Management will provide a seamless solution to rapidly onboard entities to our travel and expense management solution. The revenue from the GovERP contracts coupled with our base operations and growing rollout of our CardHero product will deliver a step change increase in our revenue profile in FY23 and beyond.”