AD1 Holdings grows annual revenue to $6 million

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By Danica Cullinane - 
AD1 Holdings grows annual revenue FY 2022 ASX

AD1 Holdings plans for the next year will focus on upsell and cross-sell opportunities to increase market share.


Technology company AD1 Holdings (ASX: AD1) has credited its investment in products, sales and marketing for a 12% growth in annual group revenue to $6 million.

In its 2022 annual report released this week, AD1 chairman Andrew Henderson and managing director Brendan Kavenagh’s joint review noted the company’s financial performance was supported by more than 60 contract wins across three divisions with cash receipts growing 35% to total $6.8 million.

Total revenue increased to $7.8 million following a research and development tax incentive of $1.8 million and the company entered into a $5 million four-year secured loan facility with PURE Asset Management for the first half of the year.

Expenses increased by about a quarter as the company grew its presence offshore and focused on penetrating new and existing geographic markets. The investment delivered strong results particularly for AD1’s Art of Mentoring and ApplyDirect divisions.

Art of Mentoring

The 2022 financial year was the first fill year Art of Mentoring was integrated in AD1’s product suite. It achieved significant traction with more than 50 new contract wins and $3.7 million in lifetime value.

In addition, the division returned 44% year-on-year revenue growth and a 78% uplift in cash receipts from customers compared to FY2021.

AD1 has focused on expanding the product in North America, bringing HR.com on board and signing up the US Department of Labor for a 12-month pilot.

Other products

Over the year, ApplyDirect achieved new customer wins and renewals from existing core customers including the NSW Public Services Commission and Pharmacy Guild and Development Victoria.

Utility Software Services (USS) maintained revenue in the last financial year and AD1 said it would continue to monitor the impact of the energy crisis on the product.

Subsequent to the end of the financial year, AD1 launched its proprietary new HR platform Jobtale in August. The company has reported strong interest early on with about 100 customers already signed and 10 key pilot partners selected to help improve and test the platform.

AD1 also recently announced it will acquire leading software as a service (SaaS) talent acquisition company Scout Talent Group for $65 million.

Scout is expected to add significant scale and growth opportunities via the cross-sell and upsell of a range of AD1 products to new and existing customers.

AD1 is currently finalising steps to begin a capital raise, which is expected to be completed by November to conclude the acquisition.

Forecast for next financial year

In their joint statement, Mr Henderson and Mr Kavenagh said the company forecasts total revenue in excess of $30 million for FY2023 as a result of the Scout acquisition.

“A successful FY23 will see AD1 Holdings achieve strong top-line growth, execute on our upsell and cross sell opportunities, manage operational expenditure and deliver profitable EBITDA results,” they said.