Online integrated screening and verification company CV Check (ASX: CV1) has posted a record revenue for the first quarter of the 2020 financial year, citing multiple new business-to-business (B2B) customer wins as the main driver.
The company banked $3.5 million in revenues, representing a 24% growth on the previous corresponding period.
New B2B deals accounted for $2.6 million of the total, with first orders booked from customers including the Unitywater utility in Queensland, Willoughby Council in New South Wales, state and federal government departments, and large not-for-profit sector entities.
Revenue also came from the Phase 1 rollout of CV Check’s white label screening and verification platform, which found early success with a large enterprise foundation customer and has since attracted customers from the tertiary education and construction fields.
White label Phase 2 is in its pre-commercialisation phase across Australia and New Zealand with a number of pilot builds in progress.
Phase 3 will focus on establishing an international client base and has had an “encouraging reception” from early discussions with potential partners, according to CV Check.
CV Check chief executive officer Rod Sherwood reacted well to the quarterly results.
“We are delighted to report record top line revenue growth for the quarter, driven by new B2B tender wins, increased high quality revenue conversions and successful new product rollouts,” he said.
“With additional revenue currently being onboarded from recent large enterprise wins, [we] remain well-positioned to continue a strong start to the new financial year.”
Mr Sherwood said the company reported a $200,000 operating and investing cash burn for the quarter – a $900,000 improvement on the previous corresponding period, comprising a $400,000 improvement in operating and investing activities and a partial tax incentive receipt against research and development activities of $500,000 in 2019.
“Revenue growth, margin improvement and continuing excellence in cost control have driven this result,” he said.
CV Check has a bank balance of $5.8 million, which includes $2.9 million in proceeds from completion of a $3.1 million placement to new and existing institutional investors in August.
A total of 18.8 million shares at $0.16 per share will be issued pursuant to the placement, with funds earmarked for working capital purposes and acceleration of the company’s strategic objectives, which include customer segment growth and a focus on product diversity.
“CV Check enters the 2020 financial year with considerable momentum at a corporate and operational level,” Mr Sherwood said.
“The concept is proven, the business model clear and [our] company is growing sustainably,” he added.
At midday, shares in CV Check were trading 11.54% higher at $0.145.