Novatti’s growth continues to track upwards
ASX-listed payments leader Novatti have released their results and report for the March FY23 quarter, with growth again tracking upwards.
This quarter again highlighted how Novatti continues to execute on its strategy of growth in its core, established B2B payments businesses while delivering sustainable cash management as we move to positive cashflow.
Some of the key highlights include:
- Acquiring revenue up 70% QoQ
- Issuing revenue up 67% QoQ
- Quarterly GTV up 56% YoY and 3% QoQ
- $9.2 million quarterly sales revenue
- Qualified bottom of sales funnel ~$15 million of new revenues
- $21.9 million cash available
- Headcount down 14% across FY23
The strong performance from both Acquiring and Issuing in particular highlights the strong momentum in two of the future growth engines of the Novatti business.
Novatti’s Managing Director, Peter Cook commented, “We are also seeing the benefits of people flow in and out of Australia starting to return to pre-COVID levels. For example, the number of Chinese visitors through Sydney Airport in March was back to 40% of pre-COVID levels. These stronger visitor numbers have positive impacts on a number of our businesses, including for example ChinaPayments, which alone saw an increase in GTV of 105% on the prior quarter.
“We continue to maintain an absolute focus on delivering positive cashflow. On a normalised basis, cash consumption was $2m leading into Q4. This is based on the actual cash consumption for the quarter being $3.9 million while taking into account circa $750,000 in Bank costs, $250,000 in one-off Acquiring platform infrastructure costs, and $900,000 in operational expenses that won’t continue into Q4.
“We expect cash use figures to continue to improve in the short term as we move to positive cashflow,” Cook ended.
