Good afternoon.
I will now provide the CEO’s report.
2023 was a transformational year for Way2VAT. A year in which our AI-powered technology platform
started to scale in many ways.
Our growth was due to factors that included the return to pre-Covid operating conditions, significant
new enterprise client wins, and new markets we entered and serviced, through a full 12 months of
integrated operations after our strategic acquisition of Spanish company DevoluIVA in September
2022.
As a result, our revenue grew 64%, enterprise client numbers increased 38% and transaction value
improved 11% as our growing client base increased the value of their claims.
Our margins continued to improve due to the increasing ratio of foreign travel and expense claims in
the total submissions, which attract a higher commission rate for Way2VAT as opposed to domestic
accounts payable.
Harnessing these initiatives, we’ve accelerated our path to profitability in 2024 with a broader product
offer, grown our client base, and expanded our markets and revenue streams. We have a clear
strategy to the grow the business and increase transaction volumes, margins and revenues.
Key to this was the development of our latest patented product to add to our existing technology
platform. APAI Compliance, our Accounts Payable Artificial Intelligent engine performs a full audit of
all accounts payable invoices for clients, reducing risk and error of manual processing and ensuring
the correct VAT/GST is charged across jurisdictions. Feedback from recent pilots has been excellent.
This product now allows us to double the number of countries to 80 that we can offer our services.
Our enterprise client list now numbers ~375, including recent additions of major multinational
companies with thousands of employees each that include: Randstad, one of the largest recruitment
companies in the world; and Acciona, a Spanish conglomerate in the development of renewable
energy infrastructure.
Our pipeline continues to grow in multiple jurisdictions. Earlier this year, we signed our first
multinational Australia-based industrial client with 6,000 employees across 15 countries. We will start
to process VAT reclaim submissions on their behalf during this September quarter, with a view to
growing this relationship across other APAC territories.
We are selling more products to more clients as our AI-powered technology platform seamlessly
integrates all domestic and international VAT/GST travel and expense and accounts payable reclaim
needs for them. One example of the value we offer, and the reason we’re confident of good revenue
growth in the second half of this year, is an international water treatment and chemical company
which has been a client of ours for a number of years. They have now expanded the use of the
Way2VAT product suite to 75 additional entities across dozens of countries.
Our $5.5 million cap raise earlier in the year was well supported by new and existing institutional
investors and will help accelerate sales in key growth areas. The funds will also assist in refining the
product suite to ensure it continues to offer superior AI technology and lead the VAT reclaim services
industry across many jurisdictions.
We currently hold six patents and continue to refine our infrastructure on the AWS cloud that will
support platform scalability and quick rollout of new features such as integration, AI-powered
authentication and back-end development. We have also bolstered our sales team capability to take
advantage of this expanded product suite and improve our ability to upsell and cross-sell with new
and existing clients.
I would like to thank our hardworking team and support of our Board who have made the
achievements of 2023 and early 2024 possible.
I would also like to thank our board member David Assia who retires from the board today, he has
been a great supporter of Way2VAT from it’s inception and we wish him the best for the future.
Finally, I want to express my gratitude to our shareholders for their ongoing support. Despite the
previous challenges of COVID-19, we've managed to grow rapidly and secure major new partnerships
and deals in important markets.
The global market for our technology is significant with US$20 billion of VAT/GST unclaimed each year.
Many of our competitors have outdated technology and manual processes. We believe consolidation
of the sector, particularly in Europe, is inevitable and our superior technology means we are well
placed to take advantage of this trend.
We therefore anticipate an exciting period for Way2VAT, and with the current momentum, the Board
believes we are primed to lead in the payments and tax reclaim sector.
Thank you.
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