Credit Clear’s investment in technology pays off with record revenues
Debt management solutions provider Credit Clear (ASX: CCR) had a strong fourth quarter with record revenue of $8.63 million, up 41% QoQ and 160% QoQ. to a year ago.
Results for the quarter were boosted by record monthly revenue of $3.12 million for June, bringing the company’s annualized revenue rate to $37.44 million.
Credit Clear also attributed the continued growth and its “disciplined approach to continuous investment in technology” to operating profitability achieved in May and June.
Growing sales pipeline
Credit Clear signed 60 new customers during the fourth quarter, several of which are expected to become “top 10” customers by revenue. Notable clients include a financial services provider, a state government service provider and a large water utility.
The company noted “new opportunities” following negotiations with a major Australian bank, a leading Australian insurer and several large utility companies.
Overseas, several key technical and data projects were completed in South Africa and Credit Clear continued discussions in the UK with a large multinational business process outsourcing (BPO) company and collection agency regarding a potential partnership.
In Singapore, Credit Clear is pursuing a licensing agreement with a major debt collection provider in Asia-Pacific.
artificial intelligence technology
Credit Clear says its software uses artificial intelligence (AI) technology to predict the optimal channel, message, and time to complete collections. This was demonstrated by a 35% increase in recoveries for a toll road operator in the last quarter.
The case study measured optimized workflows including SMS, email, and dial-in calls using the Credit Clear platform and message templates. The company’s AI determined the next action to take for a particular customer based on what has happened so far.
Credit Clear Managing Director Andrew Smith said this performance improvement “quantifiably proven in recent case studies…contributes to a greater volume of referrals from existing clients and an influx of new clients than we have signed over the last few months”.
“Our technology is being received in other markets with the same enthusiasm that we have seen in Australia.”
“We are in meaningful discussions with several global organizations that could provide Credit Clear with low-cost, large-scale international partnership opportunities,” he added.
New growth forecast
Mr Smith also noted the current “increasingly supportive economic environment”, where the cost of living is rising at a rate well above wage growth.
Credit Clear ended the quarter with a strong cash balance of $10.2 million and said it intended to reinvest earnings, expecting to generate strong growth across all business units over the course of the year. the 2023 financial year.