The Credit Clear Ltd (ASX: CCR) share price has been unable to impress the market so far on Thursday despite announcing a solid third quarter update.
At the time of writing, the Credit Clear share price is down 3%, trading at 66 cents after spending the entire morning in the red.
Credit Clear operates in the receivables management industry, defined by the ACCC as when "creditors and collectors seek to secure payment from consumers of businesses who are legally bound to pay or repay money they owe".
The company aims to disrupt the industry's current operating model by applying its technology to improve a clients' collection experience and financial outcomes.
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Why is the Credit Clear share price lower today?
The Credit Clear share price has struggled to find headway on seemingly positive financial and operational results in the third quarter. The company reported that overall revenue was up by 35% over the previous quarter to $2.8 million, driven by a 76% increase in digital revenue.
Growth in digital revenue is accelerating and now accounts for 37% of total revenue compared to the 28% reported in the second quarter. The company is pleased with the accelerating growth in digital streams as it confirms the continuing acceptance and adoption of Credit Clear's SaaS debt recovery platform over traditional debt collection methods.
The company is pushing growth on all fronts with meaningful contract wins and discussions with large insurance, education, automotive finance and utilities clients.
During the quarter, the company secured Suncorp Group Ltd (ASX: SUN) as its first major insurance sector client. The signing will have an initial contract term of two years with the company receiving an $800,000 advancement payment.
Credit Clear is riding the tailwinds of its flagship Suncorp deal, and is currently engaged with four additional major insurers about implementing its digital platform.
Despite the quarterly result ticking all boxes with solid revenue growth, key contract wins and a strong pipeline of potential clients, the Credit Clear share price remains slumped at 66 cents.
Why the Credit Clear share price is struggling this year
The Credit Clear share price has slipped 11% year-to-date despite positive announcements from the business.
Could the lack of recent upside to the Credit Clear share price have something to do with its initial public offering back in October 2020? The company had a listing price of 35 cents but ran as high as $1.20 within four days of going public.
Credit Clear made its ASX debut during a period where IPOs were running hot. Notable listings late last year include Douugh Ltd (ASX: DOU), MyDeal.com.au Ltd (ASX: MYD) and Adore Beauty Group Ltd (ASX: ABY).
These shares have experienced a similar share price performance where all-time highs were recorded during the first few days of listing, followed by a sharp selloff and grinding back and forth ever since.
