Novatti - The $1 party, page-4376

received this email from Peter cook:

Thanks for your ongoing support of Novatti and for reaching out about your concerns.

Mark Healy has received similar feedback from shareholders over the past few months. It’s also been queried in broker meetings where most have seen similar declines across the tech sector and are more interested in where we will drive our growth going forward.

We are committed to reducing expenses, a process that commenced in FY23 and has continued in Q1 FY24. As we reported last month, there was $18.2m cash on hand. With the strategy of reducing expenses without losing revenue, the focus is on lifting gross margins so that revenue is more profitable and we are cross-selling more payment products to existing clients to fully capitalise on the entire digital payments ecosystem. This has Novatti aiming to be operating cash flow positive by the end of FY24.

We have communicated to the market that we are pursuing the large growth opportunity presented by the merchant acquiring sector. Many merchants are under-serviced and don’t have digital payment solutions to suit their individual businesses and customers.
Novatti is a unique Australian non-bank end-to-end payment solutions provider which gives us more flexibility in our products to service these needs. There are also many benefits for them across our digital payments ecosystem but Acquiring can act as a gateway to the ecosystem.

It’s been reflected in the development of our Acquiring business over the past 12 months and now our platform is largely built, we have the relevant licences, and the focus is on sales growth. Novatti’s annual revenue currently sits at $39 million and we aim to grow that top-line revenue at 20% YoY.

Mark discussed a lot of this in our Q4 FY23 webcast which you can view here. It also includes the Q&A where your question was brought up: https://novatti.com/investor-briefing/

Your ongoing support of Novatti is very much appreciated.