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Fintech company 8common Limited (8common or the Company) (ASX: 8CO), a leader in expense management software and card application management, is pleased to release its consolidated quarterly cashflow and business update for the quarter ended 31 December 2019 (2Q FY20).

Key financial highlights include:

  • Record $685k of quarterly recurring SaaS and transaction-based revenue in 2Q FY20, a 48% increase from the previous corresponding period (pcp);
  • Unaudited profit of $35k and EBITDA of $160k for 1H FY20;
  • Total revenue for the December quarter increased to $872k, a 5% increase over the pcp;
  • After three consecutive quarters of positive cashflow, the December quarter saw an operating cash outflow of $246k. The cash outflow was driven by an increase in expenses as 8CO invested in people to drive & support growth through FY20, a one-off tax payment of A$35k for Realtors8 (disposed asset), a delay in receivables and investment in security protocols to PCI security standards which position the company to drive further international growth;
  • The company anticipates being cashflow positive for FY20. Rolling 12 month net operating cash inflow of $261k;
  • Net cash of $925k at 31 December 2019. Post the quarter end, several options were converted lifting the current cash balance of $1.231m.

Key operational highlights include:

The company has generated over $1.83m in contract wins in FY20 to date.  Significant contract wins during the December quarter include:

  • Extension of the Transport for NSW (TfNSW) contract for an additional 3 years reflecting an estimated $750k in total contract value[1];
  • Extension of the Federal Prime Minister and Cabinet (PMC) contract for an additional year reflecting an estimated $150k in total contract value;
  • Extension of the NSW Department of Education contract for an additional year reflecting an estimated $300k in total contract value.

Commenting on the December 2019 quarter, 8common Executive Chairman, Nic Lim said “The continued strong growth in SaaS revenue, up 48% versus the previous December quarter, highlights the strength of our revenue model. We continue to expect a strong 2H FY20 as new contract wins and client renewals drive implementation and recurring SaaS revenue. Continued strengthening of our rolling 12-month cash receipts of $4.4m and net operating cash inflow of $261k will be underpinned by the shared services wins with the Federal Government, our new product streams such as CardHERO and the continued investment in people and infrastructure to support our rapidly growing organisation.”

[1] All references to contract values are inclusive of GST