ASX-listed Novatti announces record quarterly revenue of $12.4 million
ASX-listed fintech leader Novatti have released its report on the quarter ended 31 March 2024 (Q3 FY24), with quarterly revenue hitting $12.4 million, a new record.
The quarter’s growth was driven by core Payments AU/NZ (+17% QoQ) and Payments International (+18% QoQ).
Commenting on the results, Novatti CEO, Mark Healy, said, “Substantial progress continues to be made in Novatti’s transformation. Since this transformation began at the start of Q1 FY24, quarterly revenue is now up 21% and quarterly expenses are now down 23%. In Q3 FY24 alone, Novatti achieved 16% revenue growth on the prior quarter to reach $12.4 million, which is a new quarterly record for the business. Here, the potential of Novatti’s core AU/NZ Payments business in particular is starting to shine through, with revenue increasing 17% on the previous quarter.
“This record quarter of revenue follows the implementation of a market-led, customer focused approach that has already seen early wins, including contract renewal with a major BNPL partner for card issuing and payment services and a new partnership secured with one of Australia’s largest food delivery platforms. These wins are further complemented by ChinaPayments expanding into New Zealand, leveraging the success of its Australian business, as demand for Asian digital wallet payment services continues to open opportunities for Novatti to engage with new and existing clients.
“Further, the strong potential of Novatti’s Acquiring services was highlighted again in Q3, with the integration of one new client seeing its business within Novatti rank as an overall top 3 revenue generator within the first month of operation.
“While we are very pleased with this strong revenue growth, this needs to be balanced with equally strong cost reduction to move towards our overarching goal of positive operating cashflow. To this end, in Q3 FY24 we implemented a $4 million+ annualised cost reduction program. While this resulted in costs decreasing only slightly in Q3 to $7.1 million, the substantial positive financial impact of this annualised program is expected to be seen from Q4 and into FY25.
“We remain absolutely committed to achieve positive operating cashflow but have identified that our mid-2024 target is becoming increasingly challenging and is now likely to be towards the end of calendar year 2024. In particular, more work is needed to accelerate higher margin sales and to further manage expenses. Further, following the ongoing results of Novatti’s strategic review, we also expect decisions to be made on a number of additional optimisation and divestment measures in areas that do not meet Novatti’s long term financial goals.
“Regardless, we remain absolutely committed to achieving positive cashflow as soon as possible and will be implementing the measures necessary to deliver this.”
Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of Novatti Group Limited.
