Way2VAT's Q2 FY24: Record Revenue and Strategic Expansion
W2V (W2V) Share Update July 2024 Monday 22nd
Way2VAT Achieves Record Quarterly Revenue and Expands Product Suite
Way2VAT Ltd (ASX: W2V) has announced a record quarterly revenue for Q2 FY24, marking significant growth and expansion in its product suite and client base.
Instant Summary:
- Record quarterly revenue of $1.1 million, up 13% from Q2 FY23.
- 62% increase in revenue compared to Q1 FY24.
- Cash receipts of $927k, up 36% from Q2 FY23.
- Accounts receivable on client VAT claims at $3.3 million.
- New clients include Randstad, Fever, and Acciona.
- Enterprise clients now total 375.
- Expansion of business development and sales team.
Record Revenue and Growth
Way2VAT Ltd has reported a record quarterly revenue of $1.1 million for Q2 FY24. This represents a 13% increase from the same period last year and a significant 62% increase from Q1 FY24. The company attributes this growth to the successful integration of acquisitions and continued client growth.
Way2VAT's cash receipts for the quarter were $927k, marking a 36% increase from Q2 FY23. The company also noted that accounts receivable on client VAT claims already submitted to tax authorities remain steady at $3.3 million.
New Clients and Product Expansion
During the quarter, Way2VAT welcomed several new clients, including Randstad, one of the world's largest recruitment companies, Fever, a live-entertainment tech platform, and Acciona, a global infrastructure conglomerate. These additions bring the total number of enterprise clients to 375.
The company successfully completed the pilot of its latest product, APAI Compliance, with two key clients, including a NASDAQ-listed telecom provider. The product achieved a 90% success rate on test invoices, paving the way for a full commercial rollout in Q3 FY24.
Strategic Team Expansion
To support its growth, Way2VAT has expanded its business development and sales team. The company brought on board a top VAT specialist for the compliance team in London and strengthened its sales offices in London and Spain.
Financial Highlights
Way2VAT's financial performance for Q2 FY24 reflects the increasing scale of its business. Revenue for the quarter was $1.1 million, up 13% on pcp ($961k in Q2 FY23) and 62% on the previous quarter ($680k in Q1 FY24).
The company also paid back $93k in loans during the reporting period, reducing its financing facility to $1.54 million. Payments to related parties and their associates totaled $133k, covering wages for the CEO, Chairman, and Non-Executive Directors.
Outlook
Way2VAT Founder & CEO, Amos Simantov, stated that the company will continue to build on its strong momentum by expanding its product suite and targeting new growth opportunities in Europe and beyond. The focus for the second half of the financial year will be on converting the strong pipeline in the UK and Europe into sales.
Way2VAT also announced a deed of settlement with BMYG Capital Pty Ltd for a $500,000 allocation under the Tranche 2 Placement. The first tranche of $150,000 was received on July 19th, with shares issued accordingly.
Way2VAT's record revenue and strategic expansion are likely to positively impact its stock price. The successful pilot of APAI Compliance and the addition of high-profile clients demonstrate the company's growth potential. Investors may view these developments as a strong indicator of future performance.
Investor Reaction:
Analysts and investors have reacted positively to Way2VAT's announcement. The company's ability to secure new clients and expand its product suite is seen as a significant achievement. The successful pilot of APAI Compliance, in particular, has garnered attention for its potential to drive future revenue growth.
Conclusion:
Way2VAT's record revenue and strategic expansion signal a promising future for the company. Investors should keep an eye on the company's upcoming developments and consider the potential long-term benefits of its innovative products and growing client base.