ASX-listed resume verification provider CVCheck has posted best-ever revenues for the third fiscal quarter as it advances towards cash flow breakeven. The integrated screening and verification company said quarterly revenues lifted to a record $3.3m, up 21 per cent on the same quarter last year, largely due to an uplift in demand from corporate clients.
ASX-listed resume verification company CVCheck has posted best-ever revenues for the third fiscal quarter driven by surging corporate demand as the company continues its march towards the magical breakeven point.
In a market update on Tuesday, the Perth-based integrated screening and verification company said quarterly revenues lifted to a record $3.3m in the third quarter of this financial year, up 21 per cent on the same quarter last year.
Cash receipts also climbed, rising 12 per cent compared to the same quarter in FY17 and 9 per cent when compared to the previous three months.
Cash burn for the quarter was $400,000, down 35 per cent from the same quarter last year, reflecting management's ongoing focus on expense management.
CVCheck said business performance had exceeded expectations over the quarter on the back of strong top-line growth from corporate clients and its robustly performing consumer division.
The company was particularly buoyed by achieving initial revenues from its three recently secured HR platform provider partnerships.
Several corporate integrations that boosted revenues from top tier clients also occurred during the quarter.
CVCheck Chief executive Officer Rod Sherwood said: “CVCheck now enjoys high level servicing ability across corporate, SME and individual customers. During the past quarter, CVCheck started to benefit from the commercial partnerships previously announced with three HR platform providers and its own bespoke integrations with top tier corporates witnessed those enterprises enter our top 10 customer group across the past quarter.”
“Despite the past quarter enjoying the strongest order flow in CVCheck’s history, this was not at the expense of customer satisfaction rates which improved markedly.”
“International companies approached us with increasing frequency seeking to partner and large enterprises sought us out as preferred provider for their verification needs.”
The company said it was also continuing its development activities relating to artificial intelligence technology aimed at enhancing customer experiences of its online CV verification platform.
Mr Sherwood said: “Cloud based services are deployed in our Australia and New Zealand environments, AI bots have been working side by side with our personnel throughout this financial year and we look forward to wider deployment of our recently initiated digital knowledge base to maximise customer retention and conversion.”
“Our world-class service is capturing growth in the Australian and New Zealand markets as the corporate market becomes more aware of the business, financial and reputational risk of not performing appropriate checks.”
“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.”
Sherwood has been putting his money where his mouth is too, ploughing over $330,000 into the company’s stock to pick up 5.15m shares at 6.5c a share during the quarter.
He now holds around 5% of the register.