ASX listed resume verification company, CVCheck, looks set to turn cashflow positive this quarter after a sustained focus on growing its more lucrative business to business market and an assault on costs has starting to pay off.
The company looks very different to its former self just two years ago with revenues hiking $5m in two years from $7.1m in FY2016 to $12.5m in FY2018 whilst its customer acquisition costs and cash burn has steadily decreased
The bottom line has been steadily increasing too and now looks to have a clear pathway to profitability with the annual cash burn collapsing from $4.1m in the 2017 financial year to $2.4m in FY2018.
CVCheck’s strategy of focussing on the business to business market is clearly starting to bite with 70% of the company’s revenue now hailing from that more lucrative sector.
The company has also been steadily dropping its customer acquisition costs which has in turn led to a decreasing cash burn.
CV Check Chairman Ivan Gustavino said that once the company achieved positive cash flows in the short-term, its focus would be to repeat that performance in the following quarter before positioning itself as a profitable, sustainably cash flow business.
Looking ahead, management said there were still significant opportunities to lift Australian revenues as just 8% of its FY2018 revenue came from products other than criminal history checks.
These include employment references, traffic, credit, financial and other checks that CVCheck can offer to both existing and new customers.
The technology company has also added new capabilities to its offering with the development of a new platform that allows its clients to connect their SAP SuccessFactors human resources management software directly to CVChecks’ screening platform, which is expected to streamline hiring processes for clients.
SAP SuccessFactors is a leading cloud-based software suite that that covers everything from payroll to employee engagement for more than 6600 customers across more than 60 industries.
Its streamlined reference check product has also enjoyed strong demand, placing it in the top 5 check products that the company sells in Australia.
