- Adveritas (AV1) posts record cash receipts of $887,000 over the December 2022 quarter — a 36 per cent increase compared to the same quarter the year before
- Staff costs for the quarter topped $2.4 million, though AV1’s net operating cash outflows were offset by $1.9 million in government grants and tax incentives
- AV1 attributes the higher-than-usual cash spend to servicing its increasing trial pipeline and hiring several new key staff members to accelerate growth
- Adveritas ends the December quarter with a pro-forma cash balance of $7.1 million when including a $4 million placement announced today
- At market close on Monday, AV1 shares are up 1.3 per cent and trading at 7.6 cents
Adveritas (AV1) has posted record cash receipts of $887,000 over the December 2022 quarter — a 36 per cent increase compared to the same quarter the year before.
The company said at the end of December, its annualised revenue was up a record 72 per cent from the same time in 2021 to $2.9 million.
Net cash outflows for the quarter came in at $1.19 million.
However, the company recorded staff costs for the quarter of $2.4 million.
This appears to be offset by $1.98 million in government grants and tax incentives, though an apparent accounting error means these cash inflows were not explicitly included in Adveritas’ financial report for the December quarter.
Without the grant, the company’s net cash outflows would have been $3.17 million.
The company said its higher-than-usual spending was to service an increasing trial pipeline, advertising and marketing costs to generate demand and administration and corporate costs.
Adveritas has also made a number of “key hires” since Q2 FY22, to “service the demand” generated, including a Chief Marketing Officer, Chief Product Officer, Head of Integrations and Customer Success Director.
“Adveritas has laid solid foundations for growth heading into 2023 due to the
company’s multiple revenue streams,” Adveritas CEO Mathew Ratty said.
“Both our sales and pipeline continue to grow across Google PPC, mobile verification, and affiliate verification divisions.
“We expect to see cash receipts and annualised revenue continue to grow through
the year from an uptake of new clients and implementing of our ‘Land and Expand’
strategy.”
The company ended the December quarter with a pro-forma cash balance of $7.1 million when including proceeds of a $4 million placement announced today.
Under the placement, new shares will be issued at 8.5 cents each — representing a 13 per cent premium to the company’s closing price on January 25, 2023.
Adveritas said funds raised would be used to support “growth initiatives” following its record quarterly cash receipts through the onboarding of new clients.
This will include hiring additional staff to further enhance its TrafficGuard products, provide more customer support and grow channel partnerships.
At market close on Monday, AV1 shares were up 1.3 per cent and trading at 7.6 cents.