The Xref Ltd (ASX: XF1) share price plunged today, down 19% to 40.5 cents at the close of trading on Tuesday.
This is despite the human resources technology company reporting record results for FY22.
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Xref share price slumps despite record result
In unaudited results released today, Xref reported figures for the final quarter of FY22:
- $5.8 million in sales
- $5.5 million in cash receipts
- $4.6 million in revenue.
The company says this completes a record year, with annual sales of $21 million during FY22. This is up 35% on the previous corresponding period (pcp). Revenue totalled $18.6 million, up 28% on the pcp.
What else did Xref report?
The company said revenue from the use of Xref Credits grew 27%. Sales of Xref Credits grew 4% compared to the previous June quarter.
However, the lower demand for cryptocurrency reduced the identity checks sold by RapidID by 62% compared to Q4 FY21.
As a result, sales were $5.8 million, 9% lower than Q4 FY21.
Xref launches Trust Marketplace
Xref also released a new investor presentation to the ASX today.
It details the company's 'next generation platform' and the new Trust Marketplace product.
In its statement, Xref said:
Sales of identity and graduate checks as well as additional checks from vendors on the Trust Marketplace will replace the reduction in sales from the Crypto market.
RapidID was highly dependent on crypto clients previously and the new growth plan will diversify the revenue sources of Rapid and therefore de-risk that part of the business.
The company said the staged rollout of the next generation platform would continue in FY23.
What did management say?
Xref executive director and CEO Lee-Martin Seymour said:
During the fourth quarter many of the organisations we work with had been adversely impacted by floods, sickness, salary pressure, rising interest rates, the effects of war in Ukraine and the Australian federal election.
However, due to the broad sectors and regions that contribute to our revenue we have once again broken records, remained profitable and demonstrated our resilience.
We are delighted to launch our new investor presentation which showcases our new platform, strategy and value and signals what is set to be a very exciting year ahead.
Chairman Tom Stianos said:
The results for the financial year 2022 signal a strong performance. Sales growth and profitability allow us to continue to invest in growth and execute our strategy.
The team have delivered consistent growth throughout the year whilst keeping costs flat during a time of continued market uncertainty.
