The CV Check Ltd (ASX: CV1) share price is in the green today after the company released its earnings for financial year 2021 (FY21).
Right now, the CV Check share price is 17 cents, 3.03% higher than its previous close.
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CV Check share price gains on $17.4 million revenue
Here's how the credential verification platform provider performed through FY21:
- $17.4 million in revenue, 41% more than FY20's revenue
- A comprehensive $926,616 loss, an improvement on the prior period's $1.3 million loss
CV Check's loss included the $733,082 it spent to acquire Bright People Technologies' parent company.
Over FY21, the CV Check platform brought in $16 million of revenue, representing a 30% year-on-year growth rate. Additionally, the platform's annual recurring revenue grew by 39% to $13.2 million.
In the only quarter in which Bright People Technologies was part of the company, its platforms generated $1.4 million in revenue. Of that, $573,255 was software-as-a-service (SaaS) revenue.
CV Check ended the year with a cash balance of $12.9 million.
What happened in FY21 for CV Check?
The financial year just been was a big one for CV Check and its share price.
The company agreed to purchase CI6, an entity that owns 100% of Bright People Technologies, in February.
Bright People Technologies is a SaaS provider of workforce credentials and compliance software. The business has a small number of blue-chip clients, including BHP Group Ltd (ASX: BHP), Woodside Energy, and Cash Converters International Ltd (ASX: CCV).
CV Check completed a $10.5 million share placement to fund the acquisition.
CV Check undertook work to develop and commence the rollout of automated verification processes in FY21. The company also focused on enhancing its security defences and protocols.
The Bright People Technologies acquisition was completed in the final quarter of FY21. The company has since integrated Bright People's technical team into its own.
What did management say?
CV Check's chair Ivan Gustavino commented on the results driving the company's share price today, saying:
I am proud to say that, emerging from an extremely challenging year in good shape, CV Check delivered solid achievements and is uniquely placed to build on its success. FY2021 was an immensely challenging year: The continued disruptive effects of the COVID-19 pandemic and government response measures presented challenges internally (in managing the effects on our own workforce) and externally (causing uncertainty in our markets). Those disruptive effects have not abated, and look set to continue into the current financial year.
In the midst of that disruption, the company took on its own challenges as it embraced change — completing the acquisition of the business of Bright People Technologies Pty Ltd, embarking on an integration of the two businesses, merging its management structures, beginning a process of consolidating its technology platforms, and setting itself to become an international Reg Tech company…
Notwithstanding the width of the challenge thrown to it, the company has delivered on the goals set by the board: growing revenue and [annual recurring revenue] from the core CV Check platform business; maintaining transaction and SaaS revenue from the newly acquired BPT platforms; completing the first phases of the planned integration of the businesses; and planning for the medium to long-term consolidation of the technology stacks.
What's next for CV Check?
CV Check outlined a number of happenings those interested in its share price might want to watch out for.
The company's key objective for FY22 is to introduce some of the CV Check platform's thousands of corporate clients to the Bright People platform. It expects this will help grow its SaaS revenue.
Additionally, CV Check is on track to roll out enhanced monitored compliance features on Bright People's platforms.
It also outlined some macro drivers that have boosted its performance so far. First is the shift to a digitally delivered service-based economy. The second is COVID-19, which has highlighted the need for companies to provide their services remotely.
CV Check share price snapshot
The CV Check share price has slipped 10% since the start of 2021. However, it is 88% higher than it was this time last year.
