Credit Clear (CCR) Q4 2024 TU earnings summary

Executive summary

• Achieved record Q4 FY24 revenue of $11.5m, up 28% year-over-year and 10% sequentially, driven by existing and new client growth.

• Generated $1.8m cash from operations in Q4, marking the fifth consecutive quarter of positive cash flow and bringing FY24 net cash from operations to $3.6m.

• Expanded client base, including going live with ANZ Bank and onboarding new tier-1 and tier-2 clients; signed 85 new clients in Q4.

• Digital collections reached a record $33.2m in Q4, up 65% year-over-year, with each month exceeding $10m.

• Launched "iassist," a digital SaaS platform for hardship management, in response to a 56% increase in hardship files.

Financial highlights

• FY24 revenue reached approximately $42.0m, at the top end of guidance.

• Underlying EBITDA for FY24 is expected to be around $4m, meeting upgraded guidance.

• Cash at bank stood at $13.1m as of June 30, 2024, up $0.7m sequentially and $1.1m year-over-year.

• Receipts from customers in Q4 totaled $12.7m; staff costs for the quarter were $6.0m.

• Cash from operations of $1.8m in Q4, YTD cash from operations at $3.6m.

Outlook and guidance

• FY24 guidance for revenue and underlying EBITDA achieved; FY25 guidance to be provided with full-year results in August.

• Positioned to capitalize on expected seasonal uplift in Q1 FY25, historically a strong quarter.

• Macroeconomic tailwinds and supportive trading conditions expected to continue.

• Focus on organic growth, SaaS and AI integration, and margin expansion on a controlled cost base.