Change Financial announces increase in half year revenue, nudging A$7 million
ASX-listed Change Financial have released the company’s half year results for the period ended 31 December 2023 (H1 FY24).
Key highlights from the period are the H1 FY24 revenue of US$4.5m (A$6.9m1), up 5% on prior corresponding period (pcp), with a H1 FY24 EBITDA loss of US$(0.7)m (A$(1.1)m), a 31% improvement on pcp
Change also have cash holdings of US$3.2m (A$4.9m) with no debt as at 31 December 2023.
Change CEO Tony Sheehan commented, “This half marked a clear inflection point for Change and the culmination of many years of investment and operational work to deliver the ‘building blocks’ required to launch our Vertexon PaaS platform. Excitingly, this process is complete with the Vertexon platform now live and providing processing and card issuing to our clients.”
“We have gained early market validation via several key customer wins, particularly across the Oceania region, which is enabling us to clearly demonstrate our value proposition through marquee reference clients. As a result, we are now turning our core internal focus to ensuring we can convert our growing pipeline at an accelerating rate. Aligned to this we are also confident of being able to streamline and compress the onboarding process given the learnings we have taken from our initial clients and given we will not have delays from getting the platform live.”
“Whilst H1 FY24 revenue of US$4.5m (A$6.9m) showed only modest growth on the prior period, we have a significant amount of latent revenue, via already contracted clients, that will be recognised over the next 6 to 12 months. For example, our NZ financial institutions clients contributed minimal PaaS revenue in H1, but once all cards are rolled out this is expected to deliver revenue in excess of US$2.1m (A$3.2m) per annum. Additionally, we have only just gone live with our US clients, which while not significant from a revenue perspective today, nevertheless is contracted incremental revenue that will be delivered into the future.”
“We have entered an exciting period for the business which has been positioned to deliver sustainable and profitable growth. We expect to see this occur in the near term with our target to be at a monthly EBITDA positive and cashflow breakeven run rate by June 2024.”
