Quarterly Activities/Appendix 4C Cash Flow Report
| Stock | Change Financial Ltd (CCA.ASX) |
|---|---|
| Release Time | 25 Jul 2024, 8:26 a.m. |
| Price Sensitive | Yes |
Change Financial reports record Q4 FY24 revenue, targets 30%+ growth in FY25
- Q4 FY24 revenue up 56% to US$3.2m, driven by increasing PaaS contribution
- Targeting revenue growth in excess of 30% in FY25 and maiden EBITDA positive year
- Secured new NZ PaaS client, Unity Credit Union, targeting launch in H1 FY25
Change Financial Limited (ASX: CCA) has reported strong Q4 FY24 results, with revenue of US$3.2m, up 56% on the prior corresponding period. This was driven by an increasing contribution from PaaS clients and an uplift in professional services revenue. For the full FY24 year, revenue reached US$10.6m, up 22% on FY23. The company has continued to grow its Vertexon PaaS platform, with over 40,000 active cards now on the platform generating recurring transaction-based revenues. During the quarter, Change also secured a new NZ PaaS client, Unity Credit Union, which is expected to migrate 20,000 cards onto the Vertexon platform in H1 FY25, contributing over US$2m in annual revenue.Looking ahead, Change is targeting revenue growth in excess of 30% in FY25, with a significant portion of this already contracted. The company is also aiming to achieve its maiden EBITDA positive result in FY25, as the business continues to scale and benefit from operating leverage improvements. The company ended the quarter with a strong cash position of US$2.6m and no debt, positioning it well to execute on its growth strategy. Overall, Change's Q4 FY24 performance demonstrates the increasing traction of its PaaS offering and the company's ability to drive sustainable revenue growth.
In FY25, Change is targeting to deliver revenue growth in excess of 30% with a significant portion already contracted.
Following a significant period of product investment and operational readiness, Change is well underway with the commercialisation phase of both Vertexon and PaySim with an increasing focus on growth and scale. Already onboarded Vertexon PaaS clients are now making a material contribution to overall revenue, and Change has a solid base of existing clients, contracted PaaS clients that are yet to go-live, and a maturing pipeline that can deliver increased sales and revenue in FY25 and beyond.