QuickFee Achieves Record Revenue Growth in Q4 FY24
QFE (QFE) Share Update July 2024 Monday 22nd
QuickFee Reports Significant Revenue Growth in Q4 FY24
QuickFee Limited (ASX: QFE) has reported a record quarterly revenue of A$6.1 million for Q4 FY24, marking a 42% increase compared to the previous corresponding period (pcp). This growth is driven by increased transaction volumes and continued margin expansion in both the US and Australian markets.
Instant Summary:
- Record quarterly revenue of A$6.1 million, up 42% on pcp.
- US Finance revenue up 39% on pcp; TTV up 9%.
- Australia Finance revenue up 46% on pcp; TTV up 14%.
- Invoice volumes through Connect up 120% quarter-on-quarter.
- EBTDA positive in Q4 and tracking towards operating profitability in FY25.
Revenue Growth and Key Metrics
QuickFee has achieved a record quarterly revenue of A$6.1 million in Q4 FY24, representing a 42% increase compared to the previous corresponding period. This impressive growth is attributed to increased transaction volumes and continued margin expansion in both the US and Australian markets.
In the US, finance revenue grew by 39% year-on-year, with Total Transaction Volume (TTV) up by 9% and revenue yield increasing by 250 basis points. Similarly, in Australia, finance revenue surged by 46% year-on-year, with TTV up by 14% and revenue yield improving by 300 basis points.
Connect Platform and Integrations
QuickFee's Connect platform has shown remarkable growth, with invoice volumes increasing by 120% in Q4 FY24 compared to the previous quarter. The company is also on track to launch its Thomson Reuters PracticeCS integration in Q1 FY25, further enhancing its scalable integration capabilities.
In May, QuickFee launched its Knuula integration to automate the engagement-to-cash workflow, enabling easier integrations with new strategic partners moving forward. This development is expected to drive further growth and operational efficiency.
Financial Performance and Profitability
QuickFee has made significant strides towards achieving operating profitability. The company reported EBTDA positive results in Q4 FY24 and is on track to achieve operating profitability in FY25. A well-supported placement and an oversubscribed Share Purchase Plan (SPP) raised A$4.4 million to fund further loan book growth.
The company has also strengthened its balance sheet, with A$6.9 million in available cash and a borrowing capacity of A$19.6 million as of 30 June 2024. This financial stability will support QuickFee's continued growth and profitability.
The significant revenue growth and positive EBTDA reported by QuickFee are likely to have a positive impact on the company's stock price. Investors may view the company's strong financial performance and strategic initiatives as indicators of future growth and profitability. The successful capital raise and strengthened balance sheet further enhance investor confidence.
Investor Reaction:
Analysts and investors have reacted positively to QuickFee's Q4 FY24 results. The substantial revenue growth and positive EBTDA are seen as strong indicators of the company's potential for sustained profitability. Investors are particularly optimistic about the growth prospects in the US and Australian markets, driven by increased transaction volumes and strategic integrations.
Conclusion:
QuickFee's impressive revenue growth and positive financial performance in Q4 FY24 highlight the company's strong market position and growth potential. Investors should keep an eye on QuickFee's upcoming integrations and strategic initiatives, which are expected to drive further growth and profitability. Staying informed about QuickFee's developments will be crucial for making informed investment decisions.