Credit Clear (CCR) H2 2024 earnings summary

Executive summary

• FY24 revenue reached AUD 42 million, a record and 20% increase year-over-year, with underlying EBITDA at AUD 4.2 million, exceeding guidance and improving by AUD 4 million on prior year.

• Strong cash generation with AUD 3.7 million from operations and AUD 13.1 million cash at bank, funding future growth.

• Digital collections reached AUD 116 million, up 63% year-over-year, driven by Tier 1 client adoption.

• AI-driven technology delivered a 22% uplift in performance, underpinning competitive advantage.

• The business model leverages digital technology, hybrid solutions, and client diversification for operational leverage.

Financial highlights

• Gross profit margin improved from 51% to 53% year-over-year, driven by digital collections and Tier 1 client growth.

• Underlying EBITDA margin rose from 1% to 10% of revenue, with expectations to reach 14% in FY25.

• 57% of incremental revenue flowed through to underlying EBITDA, surpassing management's expectations.

• Tier 1 clients contributed 45% of revenue, with average revenue per Tier 1 client at AUD 1.1 million.

• Statutory EBITDA was AUD 1.9 million after adjusting for non-recurring items.

Outlook and guidance

• FY25 revenue guidance is AUD 48–50 million, with underlying EBITDA expected to exceed AUD 7 million, excluding acquisitions.

• Most FY25 growth is expected from existing clients, with a strong sales pipeline and continued high tender win rates above 70%.

• International expansion, particularly into the UK and Europe, is a strategic focus for future growth.

• Macroeconomic tailwinds and favorable market conditions are expected to drive organic growth.