Quickfee sees solid growth and quarterly revenue of A$5.6 million, up 33%
ASX-listed QuickFee Limited have provided a business update for the quarter ended 30 September 2024 (Q1 FY25).
In Q1 FY25, QuickFee achieved quarterly revenue of A$5.6 million (US$3.73 million), up 33% on pcp, driven by strong growth in the core finance product in both Australia and the USA.
QuickFee group revenue by quarter is steadily trending upwards over time, with the ‘last 12 months’ rolling group revenue of A$21.7 million in Q1 FY25, up 37% on pcp. Revenue is seasonally stronger in Q2 and Q4 each fiscal year.
FY25 earnings guidance unchanged with expected FY25 EBTDA in the range of $1.5-$2.5 million, with a stronger second half-year.
US COMMENTARY
The QuickFee US business continued to grow in Q1 FY25 with US Finance (Pay Over Time) revenue up 17% on pcp to US$659,000 (Q1 FY24: US$561,000) and US Finance Total Transaction Value (TTV) up 14% on pcp to US$6.7 million (Q1 FY24: US$5.9 million). In Q4 FY25, the US Finance revenue yield (revenue divided by TTV) increased 30 bps on pcp.
QuickFee’s Q1 coincides with the busy tax extension season in the US, with key deadlines falling on September 15 and October 15. As a result, Q1 is seasonally weaker as many firms in the pipeline are focused on client deadlines rather than making buying decisions during this period. In addition, economic uncertainty related to the upcoming US election had an adverse impact on new firm acquisition, as companies postpone purchasing decisions.
AUSTRALIA COMMENTARY
The QuickFee Australian business continued its strong momentum from FY24 into the first quarter of FY25, with AU Finance revenue up 57% on pcp to A$2.65 million (Q1 FY24: A$1.69 million), driven by a 42% increase in AU Finance transaction volume to A$15.6 million (Q1 FY24: A$11.0 million) and revenue yield improvement of 160 bps on pcp.
Commenting on the solid results, Non-executive Chairman Dale Smorgon, said, “We continued to deliver steady revenue growth in Q1 FY25, driven primarily by our core Finance product in the Australia and US, as well as the rollout of Connect across our customer base. We are effectively executing on our growth strategy through new integrations, strong strategic partnerships and ongoing product innovation to improve customer retention and drive new customer acquisition. We have a strong balance sheet and are well capitalised to further grow our loan book. The strong pipeline of activity sets a foundation for continued growth in Q2 FY25 and we remain on track for an expected FY25 EBTDA in the range of $1.5-$2.5 million, weighted to the second half.”
