You know the auto pilot is starting to kick in when you reduce your marketing spend by over $3m and your revenue jumps by $2m anyway. Such was the case in the December half year for ASX listed online screening and verification company CVCheck. Revenues for the half year jumped from $2.9m to $4.9m and costs appear to be well and truly under control.
You know the auto pilot is starting to kick in when you reduce your marketing spend by over $3m and your revenue jumps by $2m anyway.
Such was the case in the December half year for ASX listed online screening and verification company CVCheck.
The company reported serious revenue growth for the six months ending December 31 on the back of a surge in corporate clients.
Commenting on the results for the six months to December, CVCheck said it had made significant progress in the first half of FY17, including the integration of its New Zealand business, a significant uptick in users and a surge in corporate revenue.
In a statement to the ASX, the company said it was particularly pleased with continued strong revenue growth after finishing the first half with revenues of $4.9m representing a 42 per cent uplift from the $2.9m posted in the previous corresponding period last year.
CVCheck achieved these stellar results despite dropping their marketing spend from $4.1m down to just $800k, perhaps a sign that the company’s business offering is now starting to get a life of its own in the market place.
Losses for the half year dropped from $6.6m in the corresponding period last year to just $2.4m for the December half and the company says it is still on track to break even by the end of calendar year 2017.
In addition, CVCheck said it continued to streamline its cost base and boost users during the period.
Company management said “Alongside the integration of the New Zealand business, the Company experienced strong growth in users, wins of high value recurring corporate revenue, and delivered significant technology enhancements and improved workflows,”
“The Company also overhauled operational processes and completed a company-wide review, which resulted in the streamlining of the ongoing cost base.”
In addition to former employment reference checks, police record checks and university degree verifications, CVCheck are also able to tell an employer if a job applicant has ever been bankrupt, laundered money, lost his or her drivers license or failed a credit check.
The company’s shift in focus from individual job seeker clients to corporate employer clients is already starting to pay dividends and should make for an interesting set of full year numbers.