QuickFee reports stronger performance in H1
The first half of the 2022 financial year was a period of stronger performance for payments innovator QuickFee, with continued growth in the US in both payments and lending, and lending in Australia continuing its recovery.
The company ended the half with momentum, achieving a record quarter in Q2 in the US in its core professional services segment.
It is now seeing a return to pre-COVID-19 lending levels, but with accelerated payments volume and larger transaction sizes, which positions QuickFee well heading into the second half.
QuickFee’s BNPL offering continues to build, with solid growth in its ISO distribution model, merchants sign-ups, and a growing backlog of volume. The company anticipates that this momentum will accelerate into the remainder of FY22 and well into FY23, becoming a material part of the QuickFee business.
Commenting on the half year results, QuickFee CEO Eric Lookhoff (pictured) said, “In addition to growing top line revenue, there has been a concerted effort to begin extracting benefits from the operating leverage in the business. Shifting to the ISO channel model for BNPL allowed us to reduce direct sales resources at the end of H1, and completion of our proprietary payments system in H2 paves the way for reduced spending in technology.”
“These changes combined with growth in our core professional services segment, quickly expanding BNPL segment, and low-risk, low-cost loan book sets us up nicely for accelerating our path to profitability.
“We continue to be well capitalised and were very pleased to finalise our new funding deal with Northleaf Capital Partners which delivers a US$70 million-equivalent multi-currency receivables facility to fund future growth.”
Key highlights for the half-year ended 31 December 2021 included another strong half in the US for Pay Now and Financing, with Pay Now Total Transaction Values (TTV) up 48% to US$422.6 million (H1 FY21: US$157.4 million); Financing up 4% to $8.2 million (H1 FY21: $7.9 million); and Average Order Values (AOV) up, signalling the economic recovery – US Pay Now AOV was up 9%, while Financing AOV was up 12%.
Lending in Australia continued its recovery, up 30% on the previous corresponding period (pcp) to A17.3 million in H1FY22.
There was also strong growth in the BNPL offering and building of independent sales organisations (ISO) distribution channels in the US. 128 ISOs were signed-up in H1 FY22 (from 8 at 30 June 2021), increasing the addressable market to 150,000+ merchants. 946 merchants were signed up in the US (June 2021: 577) and 295 signed up in Australia (June 2021: 234). The annualised backlog, which represents expected future volume and revenue based on existing portfolio behaviour, is growing strongly. BNPL volume was up to A$6.1 million (30 June 2021 A$4.6 million) and revenue up to A$0.6 million (30 June 2021: A$0.4 million), while increasing yield.
Additionally in the half year period, the Jim’s Group 20-year franchise agreement signed, providing access to around 4,500 franchise merchants in Australian home services to offer payment plans.
Overall, revenue for H1 FY22 was $4.7 million, up 4% on the pcp, and gross profit was $3.4 million, up 6% on pcp.