Spenda Limited Q4 FY24 Activities Report and Limepay Acquisition
SPX (SPX) Share Update July 2024 Monday 22nd
Spenda Limited Reports Strong Q4 Performance and Strategic Acquisition
Spenda Limited (ASX: SPX) has released its Quarterly Activities and Cash Flow report for Q4 FY24, highlighting impressive growth in payment volumes, strategic acquisitions, and future plans for continued expansion.
Instant Summary:
- Q4 cash receipts from customers hit $1.81m, up 26% quarter-on-quarter.
- Total FY24 payment volumes increased by 161% year-over-year.
- Acquisition of Limepay to accelerate growth trajectory.
- Cash and cash equivalents: $9.8m as at 30 June 2024.
- Growth trend expected to continue in FY25 with new product rollouts.
Quarterly Performance
Spenda Limited experienced a robust Q4 FY24, with cash receipts from customers reaching $1.81 million, marking a 26% increase quarter-on-quarter and a 52% rise year-over-year. The company also reported a significant boost in total payment volumes, which surged by 161% compared to the previous fiscal year, totaling $250 million in FY24.
The company's strategic focus on key partnerships with Carpet Court, Capricorn, eBev, and AirPlus has been instrumental in driving this growth. Notably, the rollout of Spenda AR to Carpet Court's Head Office resulted in stable B2B payment volumes of approximately $20 million per month.
Strategic Acquisition
On 16 July 2024, Spenda announced the acquisition of Limepay Pty Ltd for up to $8 million in an all-scrip transaction. Limepay, a B2B SaaS company providing embedded finance services, generated $2.8 million in revenue in FY24. This acquisition aligns with Spenda's core strategy and is expected to enhance the company's ability to execute existing customer contracts and scale payment flows.
Product Development and Future Plans
During Q4, Spenda's development team focused on delivering key functionalities for the Capricorn DSD Project and extending the SpendaAP - AirPlus product. The company also released the beta version of its Quote-to-Pay functionality for initial testing.
Looking ahead, Spenda plans to launch its SOE solution for the Carpet Court store network and continue rolling out Spenda AP bundled with AirPlus facilities. The integration of Limepay is also a priority, with expectations of onboarding new customers and accelerating revenue growth.
The strong quarterly performance and strategic acquisition of Limepay are likely to positively impact Spenda's stock price. The significant increase in payment volumes and cash receipts demonstrates the company's growth potential. The acquisition of Limepay is expected to enhance Spenda's capabilities and accelerate its growth trajectory, which could boost investor confidence.
Investor Reaction:
Analysts have reacted positively to Spenda's Q4 performance and the acquisition of Limepay. The substantial growth in payment volumes and strategic alignment with key partners are seen as major strengths. Investors are optimistic about the company's future prospects, particularly with the integration of Limepay's capabilities.
Conclusion:
Investors should keep an eye on Spenda's upcoming product rollouts and the integration of Limepay. The company's strong performance and strategic moves indicate potential for continued growth. Staying informed on Spenda's developments will be crucial for making informed investment decisions.