Credit Clear turns profitable earlier than expected, thanks to record turnover in May

Credit Clear chief executive Andrew Smith said the company is well positioned for continued growth in fiscal 2023.

Credit Clear (ASX:CCR) reached a major milestone after revealing that it achieved earlier-than-expected profitability in May 2022, propelled by record revenues.

The company had previously indicated that it was on track to achieve this goal from July this year.

Breakeven was achieved after $3.03 million in revenue in May, along with an “ongoing disciplined approach” to increasing investment in technology and customer success resources.

Credit Clear chief executive Andrew Smith said profitability was achieved because the company had positioned itself in 2022 to lead the market as an “end-to-end credit management company”.

“We achieved this by delivering a ‘best of both world’ offering that combines award-winning artificial intelligence technology with an experience-driven, customer-centric service offering. »

“The performance improvement produced for our customers has been quantifiably proven in recent case studies and is contributing to a greater volume of referrals from existing customers and an influx of new customers we have recruited over the past few months. .”

Solid cash flow

Becoming Cash Flow Positive follows Credit Clear’s $7.5 million placement earlier this month to support the rapid onboarding of new customers.

When the placement was announced, Smith said the company was winning new business at a faster rate than he had seen in the industry before.

“This is due to our technological advantage which can provide customers with an immediate performance boost.”

Credit Clear’s technology includes an AI-powered digital billing and communications platform that enables businesses to achieve “smarter, faster and more efficient” financial results.

It does this by changing the way people handle financial repayments.

“We win business because our technology is backed by a full-service offering, where we bring a modern, holistic, end-to-end approach to client account management,” Smith explained.

Combined with the proceeds from the placement and a positive cash flow, Mr Smith added that the company would close the 2022 financial year ending in June as “a profitable market-leading company”, with a strong cash balance to generate further growth in fiscal year 2023.