Credit Clear produces record quarterly revenue of $10.5 million
Credit Clear have delivered record revenue of $10.5 million, up 22% on pcp, tracking in line with guidance of $40 – $42 million for FY24, that was upgraded with the 1H’24 results. Revenue growth was driven by two recently signed clients that have grown to achieve tier-12 status during the quarter.
Credit Clear remains on track to achieve its Underlying EBITDA guidance of in excess of $3 million.
The company produced its fourth consecutive quarter of positive cash from operations with $0.2 million in Q3’24. Cash from operations now stands at $1.8 million for YTD FY24.
The company had $12.4 million cash at bank on 31 March 2024, a $7.4 million improvement year-on-year and in a strong position to fund growth opportunities.
Historically, Q2 and Q3 are seasonally weaker quarters of growth and, having now posted revenue growth through these quarters, the company is well positioned heading into Q4’24 and Q1’25, historically the strongest quarters of growth.
Digital technology
Payments made via the high-margin digital platform grew 59% pcp to $29.6 million, surpassing $10.0 million collected on the digital platform during a month for the first time in March. Credit Clear’s Consumer Division continuing to adopt and deploy the technology as it onboards large new tier-1 clients with two additional clients achieving tier-1 status for the quarter.
New clients
The company signed 83 new clients during the quarter, which was again characterised by the signing of a new expected tier-1 client and eight expected tier-2 clients. Feedback from new clients signed regarding their decision to appoint Credit Clear centre around the need to introduce new and innovative engagement strategies, while also looking to introduce a new independent provider onto their collections panel to strengthen their collection capabilities in the current challenging economic environment.
The new business pipeline remains strong. State Government work is a growing area for the company, where, for example, it has recently been added to a state government approved providers panel in Western Australia, resulting in potential work with several state departments.
The insurance sector also continues to be an area of strength with two new insurance providers progressing through the sales pipeline. Credit Clear’s recently announced a partnership with Guidewire, a global leader in insurance claims management, illustrates the need for customer-centric approaches to recoveries with a solution that enables space, options, and flexibility. The partnership establishes a mutually advantageous scenario for policyholders and insurers, showcasing the positive outcomes arising from constructive customer engagement.
Credit Clear has also been named as a Finalist in the Best Service Provider (Claims) category at the prestigious Insurance Business Australia Awards. Further recognition of the company’s industry leading service within the claims industry.
Credit Clear CEO, Andrew Smith, said, “Record revenue and a controlled cost base have helped to deliver sustainable cash from operations for the past 12 months. Having grown the business through the seasonally weaker Q2 and Q3 quarters, we now expect a strong uplift through the seasonally stronger Q4 and Q1’25 quarters. Our ongoing success in winning new clients has been extended, and it is particularly pleasing to see two more clients achieve tier 1 status.
“Finally, the continued uptake of 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.”
