ASX-listed resume verification provider CVCheck says it continues to outperform expectations in the fourth fiscal quarter due to a lift in demand for its services in New Zealand. The Perth-based integrated screening and verification company says revenues have also been assisted by strong corporate demand in both territories and a recent flood of working with children verification requests.
ASX listed resume verification company CVCheck, says it has recorded better-than-expected revenues so far this quarter as the company rapidly advances towards the magical breakeven mark.
In a market update on Tuesday, the Perth-based technology company said business performance continued to exceed management expectations largely on the back of a pickup in its New Zealand business
Specifically, CVCheck said a mid-2018 statutory deadline for New Zealand workers who interact with children to undergo safety checks had caused a surge of orders under its contract with the Ministry of Health that covers around 2,000 workers in the sector.
CVCheck said business performance had exceeded expectations over the quarter also due to strong corporate growth, driven by ongoing sales and marketing activity.
It has also been buoyed by initial revenues from its three recently secured HR platform provider partnerships with PageUp, SnapHire and Springboard, the company said.
Additionally, CVCheck said another integration this time with JobAdder has been completed, with the two companies preparing for a commercial rollout together.
CVCheck Chief executive Officer Rod Sherwood said: “We are pleased to witness the current surge in NZ Child Worker Safety Checks and the agile way our operations team has adapted their skill mix to service the strong increase in client orders.”
“However, given the surge is probably associated with the July 2018 statutory deadline we will maintain operational flexibility to accommodate any normalisation of demand.”
The company is currently focused on Australia and New Zealand as an increasing number of corporates in both markets seek to ensure that its prospective employees live up to expectations from day 1.
It is also in the process of diversifying its portfolio of checks sold to customers, with a number of second or subsequent checks doubling from the same time last year, the company said.
“Our world-class service is capturing growth in Australia and New Zealand as the corporate market becomes more aware of the various risks of not performing appropriate checks,” Mr Sherwood added.
“We are excited by the addressable market opportunity given the more developed US background checking market now represents an estimated US$1.8bn per annum.” He said
The latest update comes after the ASX junior recently posted best-ever revenues for the third fiscal quarter which saw revenues lift to a record $3.3m, up 21 per cent on the same quarter last year, largely due to an uplift in demand from corporates.