CCR Grows Revenue 117% in Q3, Will be Cashflow Positive by July 2022

Australian receivables management solution provider Credit Clear Limited (“Credit Clear” or the “Company”) provide an update on business activities and lodge its latest Appendix 4C cashflow report for the quarter ended 31 March 2022 (Q3 FY22).

Andrew Smith, Credit Clear CEO, said: “Credit Clear has emerged as a leader in the global account receivables industry. We have proven technology that is clearly differentiated from any other in the market. With an end-to-end hybrid collection offering that provides best-in-class solutions at every stage of the collections lifecycle. Our reshaped executive team has the expertise and relationships to take our technology and services to a global market. As we turn profitable from July 2022, we also have positive cash flow to reinvest into research and development to further our technology and the evolution of our platform.”

Financial update

Credit Clear achieved record revenue of $6.1m in Q3 FY22 representing an increase of 117% on the prior comparable period (pcp) and 88% quarter-on-quarter (QoQ). Record monthly revenue of $2.9m in March 2022 was also achieved.

Owing to material growth in revenue, fiscal discipline and operational synergies arising from the ARMA acquisition, the Company will be cashflow positive from July 2022.

The Company projects an annual revenue run rate of >$35 million per annum, based on March 2022 actual revenue of $2.9 million. This revenue run rate does not include any expected income from Techub in South Africa or significant new clients that are in the process of being onboarded.

Significant new client wins

Credit Clear has signed 65 new clients during the quarter, including multiple large enterprises currently being onboarded that CCR expects will have a material impact on revenue. CCR now services multiple leading brands in key industry sectors including financial services, consumer, insurance, utilities, government, trade credit and automotive.

ARMA acquisition

During the quarter Credit Clear integrated ARMA’s clients onto its digital platform. Since integration 292k customer accounts have been loaded onto the platform across 47 clients. $3m in payment plans have been committed to CCR’s digital solutions since 10 February to date and $1.6m in digital payments have been received.

International expansion

CCR has successfully deployed its digital platform into an international market for the first time, following the partnering and teaming agreement signed with Techub in South Africa. The highly automated offering demonstrates CCR’s ability to rapidly scale the digital business into new global markets. Techub has notified CCR that it will fast-track the rollout to its entire US$1bn debt portfolio, dispensing with the planned three-month pilot on a US$100m debt portfolio.

Techub has also announced that iSON Xperiences, Africa’s largest BPO service provider has taken a strategic shareholding in its holding company CSS Group. The iSON investment opens significant new markets to CCR across 18 countries including multiple African nations, India and the United Arab Emirates.

CCR is exploring similar opportunities in multiple international markets.

Case Studies

An Optimiser case study for ARMA has shown a material uplift in ARMA’s business performance since it was integrated onto the digital platform. This includes a 22% increase in collections, 32% uplift in customer engagement, 16% uplift in Net Promoter Score (NPS) and a 20% reduction in the time to recover.

The material improvement in business performance demonstrates the power of CCR’s digital platform as well as the depth of knowledge that CCR has in optimising digital strategies. The fact that this uplift in performance has been achieved across the ARMA client base, which following CCR’s extensive due diligence, was already a leader in operational efficiency and collections knowhow, is indicative of the size of the opportunity that CCR has to disrupt the industry.

A case study conducted for Toyota from January to March 2022 showed CCR’s Digital first hybrid approach outperformed phone calls for first contact engagement by 200% over the three-month period. NPS scores collected through the 3-month Toyota Finance digital first hybrid case study has delivered a record result of +64 demonstrating a far superior customer experience.

During the quarter Credit Clear also achieved a significant milestone with Suncorp, where the company is now fully integrated (through real-time ‘API’) with the Suncorp core claims processing platform as their digital engagement and payments solution. This is a significant achievement given the time and effort it takes to integrate with these types of core systems. Now that Credit Clear is integrated with Suncorp, it looks forward to growing the volume of claims through the platform.

Quarterly Investor Briefing

Date: Tuesday, 26 April 2022
Time: 12pm AEST
Registration: The joining link for the briefing is here.

CCR invites shareholders and investor to its Q3FY22 Quarterly Investor Briefing. The briefing will be hosted by Credit Clear CEO Andrew Smith and Credit Clear Chief Product Technology Officer Jason Serafino. There will also be an opportunity to ask questions during a live Q&A.