BidEnergy (ASX: BID) has ended the March quarter a plan to be cash flow positive in its sights.
The energy-spend manager and software service provider reported yesterday the group’s total combined annualised revenue was A$4.4 million on 31 March.
Subscriptions to the BidEnergy energy-spend reduction platform and revenues from the cyclical RealWinWin rebate-claims system contributed A$2.2 million each to the revenue figure.
The company used its March quarterly report to highlight its goal to be cashflow positive by the end of next year.
“Based on internal forecasts with current sales momentum and underlying cost structures, the company is budgeting becoming cash flow positive in the December quarter of 2019,” BidEnergy said in the operating report.
BidEnergy’s customer list of Australian and international brands now includes 51 clients.
The Australian group generates revenues in the US and UK and added Singtel Optus, Property NSW, The Australian Venue Company, and Berkshire Hathaway to its client list in the quarter, taking the Australian company’s revenue to a rounded A$0.8 million.
The Salvation Army joined its client list last week after BidEnergy had unaudited revenues of about A$500,000 in BidEnergy subscriptions, and A$350,000 for RealWinWin rebate captures in the US.
RealWinWin quarterly revenue dipped down from A$596,000 the January quarter, due in part to seasonal effects.
In a statement released to market yesterday, the company revealed it reduced underlying cash burn to A$675,000 for the March quarter, after burning about A$300,000 a month in the January quarter.
BidEnergy burned a total of A$975,000 in the financial quarter — A$300,000 on a chief executive termination payment that had been reported in January.
The A$20.7 million market capped company said as it added new business, its burn levels would continue to reduce over time.
The company’s quarterly report tipped total estimated cash outflows for the June quarter would be A$1.925 million.
BidEnergy also predicted the December 2018 quarter, with its cheaper costs, would have a substantially lessened cash burn.
“Outside of these annual one-off costs, the company forecasts no meaningful increase in its underlying cost base as the business moves towards break-even,” it said.
BidEnergy had a A$5.4 million cash balance on 31 March.
The company’s securities closed yesterday unchanged at A$0.028.