Credit Clear (ASX: CCR) has hit a major milestone after revealing it achieved profitability ahead of schedule in May 2022, which was propelled by record revenue.
The company had previously noted it was on track to achieve this goal from July this year.
Profitability was achieved following $3.03 million in revenue coming in during May, along with an “ongoing disciplined approach” in increasing investment in technology and client success resources.
Credit Clear chief executive officer Andrew Smith said profitability had been accomplished because the company had positioned itself in 2022 to lead the market as an “end-to-end credit management company”.
“We’ve done this by providing a ‘best-of-both’ offering that sees award-winning AI technology combined with an experience-led and customer centric service offering.”
“The uplift in performance produced for our clients has been quantifiably proven in recent case studies and is contributing towards greater referral volumes from existing clients, and an influx of new clients that we’ve singed in the past few months.”
Strong cash balance
Becoming cash flow positive follows Credit Clear’s $7.5 million placement at the start of this month to support rapid onboarding of new clients.
When the placement was announced, Mr Smith said the company was winning new business at a faster rate than he’s previously seen in the industry.
“This is because of our technological advantage that can provide clients with an immediate uplift in performance.”
Credit Clear’s technology comprises an AI-powered digital billing and communication platform that enables businesses to drive “smarter, faster, and more efficient” financial outcomes.
It does this by changing the way people manage financial repayments.
“We win business because our technology is supported by a full-service offering, where we bring a modern and holistic end-to-end approach to account receivables management,” Mr Smith explained.
Combined with the placement proceeds and positive cash flow, Mr Smith added the company would be closing out the 2022 financial year ending June as a “profitable market-leading company”, with a strong cash balance to deliver further growth in FY2023.