Wrkr Ltd Reports First Positive Cash Flow in Q4 FY24

Financial Highlights

Wrkr Ltd has achieved a significant milestone by reporting a positive cash flow from operating activities for the financial year 2024, amounting to $340k. This is the first time the company has reported a positive annual cash flow since its listing in 2016. The company's commitment to cost efficiencies, customer retention, and executing contracts has been pivotal in reaching this achievement.

Additionally, Wrkr Ltd saw a substantial increase in cash receipts from customers, reporting $2.90 million for Q4 FY24, a 56% increase compared to $1.86 million in Q4 FY23. This growth is attributed to stable revenues from the ClickSuper clearinghouse and the continual growth of the SMSF Hub.

Business Strength and Market Activity

Wrkr Ltd has continued to build its market position and brand, expecting to benefit from increased brand awareness, particularly with the Industry Fund platform built with MUFG Retirement Solutions. The company anticipates significant opportunities as Funds and Employers prepare for Payday Super reforms expected in July 2026.

In Q4 FY24, Wrkr Ltd successfully renewed its agreement with Precision Administration Services, extending the contract for an additional two years with an option for a further two-year extension. This renegotiation includes a 25% increase in pricing for license, support, and maintenance fees. The company also retained all licensed software contracts with Vialto, IOOF, and CSC, and saw continued user retention across its direct SaaS products.

Market Expansion and Platform Development

Wrkr Ltd has been actively expanding its market presence, particularly with the MUFG Hong Kong build and the nearing completion of the MUFG Industry Build. The company is also testing new feature enhancements with the Rest Pilot activity. The Wrkr API for Workday with KPMG has been introduced to a wider market, generating high interest among Workday enterprise users.

Platform development milestones in Q4 2024 include the integration of Transmit Security for user security and fraud prevention, now part of the MUFG Industry Solution for both Australia and Hong Kong platforms. Wrkr Ltd also achieved SOC II compliance certification, a significant milestone for the platform's engineering and design.

Q1 FY25 Focus and Investment

Looking ahead, Wrkr Ltd will focus on three key investment areas over the next two quarters:

• Investing alongside MUFG to provide commercial and implementation planning options for MUFG’s broader Fund clients.
• Exceeding MUFG expectations for the Rest pilot while expanding the platform's feature set for the Hong Kong Pension market.
• Expanding API products to support a broader set of international HRM Systems and their integrators.

Other Financials

The company's cash expenditure for the quarter included $1,470k in staff costs, $672k in administration and corporate costs, $359k in operating costs, $76k in finance costs, and $4k in advertising and marketing. Payments to related parties amounted to $76k, including directors’ fees and interest paid on convertible notes.