Credit Clear’s investment in technology pays off with record revenues
Credit Clear is forecasting continued growth across every business unit for the 2023 fiscal year.
Receivables management solution provider Credit Clear (ASX: CCR) has delivered a strong fourth quarter with record revenue of $8.63 million, up 41% quarter-on-quarter and 160% compared to a year ago.
The quarter’s results were boosted by a record monthly revenue of $3.12 million for June, taking the company’s annualised revenue run rate of $37.44 million.
Credit Clear also attributed continued growth and its “disciplined approach to ongoing investment in technology” to the operational profitability achieved over May and June.
Growing sales pipeline
Credit Clear signed-on 60 new clients during the fourth quarter including several it expects will become “top 10” clients by revenue. Notable clients include a financial services provider, a state government service provider and a large water utility.
The company noted “new opportunities” as a result of negotiations with a large Australian bank, a tier one Australian insurer and several large utility companies.
Looking abroad, several key data and technical projects were completed in South Africa and Credit Clear has progressed talks in the United Kingdom with a large multinational business process outsourcing (BPO) and collection agency regarding a potential partnership.
In Singapore, Credit Clear is pursuing a licencing agreement with a large Asia Pacific debt collection provider.
Artificial intelligence technology
Credit Clear claims its software uses artificial intelligence (AI) driven technology to predict the optimum channel, message and timing to achieve collections. This has been demonstrated in a 35% uplift in collections for a toll road operator during the last quarter.
The case study measured optimised workflows including SMS, email and dialler calls using the Credit Clear platform and message templates. The company’s AI determined which action to take next for a particular customer based on what has already happened to date.
Credit Clear chief executive officer Andrew Smith said this uplift in performance “quantifiably proven in recent case studies … is contributing towards greater referral volumes from existing clients, and an influx of new clients that we have signed in the past few months”.
“Our technology is being received in other markets with the same enthusiasm that we have seen in Australia.”
“We are in meaningful discussions with several global organisations that could provide Credit Clear with low-cost, high-scale international partnership opportunities,” he added.
Further growth forecast
Mr Smith also noted the current “increasingly supportive economic environment” where the cost of living is increasing at a rate well ahead of wage growth.
Credit Clear ended the quarter with a strong cash balance of $10.2 million and said it intends to reinvest profits, expecting to deliver strong growth across every business unit in the 2023 fiscal year.