QUICKFEE LIMITED For personal use only
ASX Release | 19 July2022
QuickFee Limited
Q4 FY22 quarterly business update
QuickFee Limited (ACN: 624 448 693)
For personal use only
ASX Release | 19 July 2022
QuickFee Limited
Q4 FY22 quarterly business update
QuickFee Limited (ASX:QFE) ("QuickFee") announces a business update for the quarter ended 30 June 2022 (Q4 FY22).
Q4 FY22 highlights
- QuickFee on track to achieve run-rate profitability by the end of FY23 within existing cash and borrowing facilities
- Another record quarter of Total Transaction Values (TTV) processed in the US
- Q4 FY22 Pay Now TTV up 38% to US$319 million (Q4 FY21: US$232 million), with consecutive record volumes in April and May 2022
- FY22 Pay Now TTV up 44% to US$961 million (FY21: US$668 million)
- Continued improvement in lending performance in the US
- Q4 FY22 up 8% to US$4.2 million (Q4 FY21: US$3.9 million) and FY22 up 11% to US$16.8
million (FY21: US$15.1 million)
- Q4 FY22 up 8% to US$4.2 million (Q4 FY21: US$3.9 million) and FY22 up 11% to US$16.8
- Australian lending in Q4 FY22 up 19% to A$13.0 million (Q4 FY21: A$10.9 million); June 2022 was the highest month on record
- Continued strong growth in BNPL offering:
- US BNPL TTV of US$1.3 million in Q4 FY22, up 18% on Q3 FY22 (US$1.1 million);
- Global run-rate volume backlog up 37% to A$11.4 million (A$8.3 million at 30 June 2022);
- Customer credit losses continue at negligible levels
- Recurring ACH product launched in the US in June 2022
- Strongly supported capital raise conducted in May 2022, raising A$4.4 million for growth plans
Q4 FY22 performance
Professional services | Q4 FY22 | Q4 FY21 | Year-on-year | |||||||||||
movement | ||||||||||||||
Total transaction values (TTV) | ||||||||||||||
US ACH (Pay Now) | US$261m | US$188m | +39% | |||||||||||
US Card (Pay Now) | US$58m | US$44m | +32% | |||||||||||
Total US Pay Now | US$319m | US$232m | +38% | |||||||||||
US Financing (Pay Later) | US$4.2m | US$3.9m | +8% | |||||||||||
AU Financing (Pay Later) | A$13.0m | A$10.9m | +19% | |||||||||||
BNPL (Buy Now, Pay Later) | Q4 FY22 | Q4 FY21 | Year-on-year | |||||||||||
movement | ||||||||||||||
BNPL TTV - US | US$1.3m | US$0.4m | +225% | |||||||||||
BNPL TTV - AU | A$0.2m | A$0.2m | -% | |||||||||||
30 June 2022 | 31 March 2022 | Quarterly | ||||||||||||
movement | ||||||||||||||
Run-rate volume backlog - global | A$11.4m | A$8.3m | +37% | |||||||||||
QuickFee Limited (ACN: 624 448 693) | 1 |
For personal use only
FY22 performance
Professional services | FY22 | FY21 | Year-on-year | ||||||||
movement | |||||||||||
Total transaction values (TTV) | |||||||||||
US ACH (Pay Now) | US$778m | US$537m | +45% | ||||||||
US Card (Pay Now) | US$183m | US$131m | +40% | ||||||||
Total US Pay Now | US$961m | US$668m | +44% | ||||||||
US Financing (Pay Later) | US$16.8m | US$15.1m | +11% | ||||||||
AU Financing (Pay Later) | A$38.1m | A$30.8m | +24% | ||||||||
BNPL (Buy Now, Pay Later) | FY22 | FY21 | Year-on-year | ||||||||
movement | |||||||||||
BNPL TTV - US | US$3.5m | US$0.5m | +600% | ||||||||
BNPL TTV - AU | A$0.9m | A$0.3m | +200% | ||||||||
30 June 2022 | 30 June 2021 | Year-on-year | |||||||||
movement | |||||||||||
Run-rate volume backlog - global | A$11.4m | A$4.6m | +148% | ||||||||
Commenting on the quarter and financial year, Eric Lookhoff, QuickFee's CEO said:
"We are pleased to see that the successful execution of our strategic plans and investments made over the past two financial years are delivering results. The fourth quarter delivered record transaction volumes in the US, improved lending numbers and momentum in our credit-risk protected BNPL offering.
These results, combined with improving yields, lowered costs and continued low bad debts, have shortened QuickFee's pathway to profitability.
We continue to see a number of major tailwinds for our business, in particular the growing prevalence of online payments in the US professional services sector. Because of strategic pricing changes and cost management, QuickFee is benefiting from improved margins driven by high organic growth and increased transaction sizes due to inflation.
In order to continue executing on our growth opportunities, we successfully completed a strongly supported share placement and share purchase plan in May 2022 with A$4.4 million raised. We would like to thank all investors, both current and new, for their support of the business and we are confident this will allow us to deliver on our strategic plans.
Following the launch of QuickFee's proprietary payments platform and a period of significant investment, QuickFee has also begun stepping down certain redundant operating and technology spends which were needed to establish the Company's payment platform technologies. The Company heads into FY23 with a solid footing and strong momentum."
Operational update
Professional services - United States
QuickFee achieved record active merchant numbers in Q4 FY22, closing the financial year strongly with consecutive record processing volumes achieved in April and May 2022. In Q4 FY22, active merchant numbers grew 28% to 621 and active customer numbers grew 26% to 118,000. The increase in active merchant and customer numbers drove the growth in TTV.
Pay Now TTV was up 38% to US$319 million (Q4 FY21: US$232 million), whilst Financing continued its
year-on-year growth with an 8% improvement to US$4.2 million (Q4 FY21: US$3.9 million).
700 merchants transacted with QuickFee in FY22, up 39% from 504 in FY21, underlining the recurring demand from our merchant base. Similarly, active customers grew by 30% to 253,000.
QuickFee Limited (ACN: 624 448 693) | 2 |
US Q4 FY22 & FY22 TTV and trading metrics
US Financing (US$M) | US Pay Now (US$M) |
use only
4.2 | 16.8 | 319 | 961 | |
3.9 | 15.1 | |||
232 | 668 |
Q4 FY21 | Q4 FY22 | FY21 | FY22 | |||||||||
Q4 FY21 | Q4 FY22 | FY21 | FY22 |
personal
US active customers excl. BNPL (000s)
118253
94 | 195 |
US active merchants excl. BNPL (000s)
621700
485504
For
Q4 FY21 | Q4 FY22 | FY21 | FY22 | Q4 FY21 | Q4 FY22 | FY21 | FY22 |
United States ACH
QuickFee has experienced continued rapid growth in ACH TTV over the past two years, with ACH TTV in Q4 FY22 up 39% to US$261 million; FY22 was up 45% to US$778 million.
US ACH TTV (US$M) | 261 | ||||||
188 | 196 | 175 | |||||
146 | |||||||
127 | 123 | ||||||
100 | |||||||
Q1 FY21 | Q2 FY21 | Q3 FY21 | Q4 FY21 | Q1 FY22 | Q2 FY22 | Q3 FY22 | Q4 FY22 |
In June 2020, the company launched its Recurring ACH product, which is enjoying strong interest from new and existing professional services firms. Recurring ACH improves customer and merchant retention, increasing volume with no additional sales effort. This new offering, coupled with the launch of integration solution Connect this financial year, new firm sign-ups and the continued shift to digital invoicing, provides increased momentum as QuickFee enters FY23.
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Revenue yield on ACH increased to 0.40% in Q4 FY22, driven by changes in QuickFee's ACH pricing model which shifted merchants away from legacy fixed fees, to a percentage of volume fee. As inflation increases average transaction sizes, this new model improves yield and margin, as processing costs remain fixed per transaction. As recent higher levels of inflation are anticipated to continue in the short to medium term, this is expected to deliver increased margin improvements into FY23.
United States ACH revenue yields
TTV in US$M | Q4 | Q4 | % +/- | FY22 | FY21 | % +/- | |||||||||||||||
Revenue2 in US$000s | FY22 | FY21 | |||||||||||||||||||
TTV | 261 | 188 | +39% | 778 | 537 | +45% | |||||||||||||||
Payments and other revenue | 1,034 | 665 | +55% | 2,871 | 1,964 | +46% | |||||||||||||||
Total revenue | 1,034 | 665 | +55% | 2,871 | 1,964 | +46% | |||||||||||||||
Total revenue/volume yield % | 0.40% | 0.35% | +0.05% | 0.37% | 0.37% | -% | |||||||||||||||
United States Card
QuickFee's Card product enjoyed similar TTV growth to ACH, up 32% to US$58 million in Q4 FY22 (Q4 FY21: US$44 million) and up 40% to US$183 million in FY22 (FY21: US$131 million). Credit and debit cards continue to be a favoured payment method in the US for professional services fees.
US Card TTV (US$M) | 58 | ||||||
44 | 46 | 44 | |||||
31 | 29 | 35 | |||||
27 | |||||||
Q1 FY21 | Q2 FY21 | Q3 FY21 | Q4 FY21 | Q1 FY22 | Q2 FY22 | Q3 FY22 | Q4 FY22 |
In Q4 FY22 the Company increased its credit card surcharge for professional services fee payments from 3.0% to 3.5%, made possible due to our strategic relationship with card processor, Payroc. As a result, revenue yields are expected to increase by as much as 0.5% on the majority of card transactions. The positive effect of this pricing change can already be seen in the Q4 FY22 revenue yield below, which increased 14 basis points to 0.31% (Q4 FY21: 0.17%).
Coupled with increased transaction sizes due to inflation, this pricing change delivers improved revenue yield and margins, with further momentum into FY23 and beyond.
United States Card revenue yields
TTV in US$M | Q4 | Q4 | % +/- | FY22 | FY21 | % +/- | |||||||||||||||
Revenue2 in US$000s | FY22 | FY21 | |||||||||||||||||||
TTV | 58 | 44 | +32% | 183 | 131 | +40% | |||||||||||||||
Payments and other revenue* | 182 | 76 | +139% | 353 | 232 | +52% | |||||||||||||||
Total revenue | 182 | 76 | +139% | 353 | 232 | +52% | |||||||||||||||
Total revenue/volume yield % | 0.31% | 0.17% | +0.14% | 0.19% | 0.18% | +0.01% |
*US Card revenue is the net revenue share QuickFee receives from its card processors, not the gross amount surcharged to customers.
United States Financing
Financing saw steady growth of 8% in Q4 FY22 to US$4.2 million (Q4 FY21: US$3.9 million) as the US economy exited its phase of Covid-19 stimulus measures and began to see increased inflation. Financing TTV in FY22 grew 11% to US$16.8 million (FY21: US$15.1 million). In Q2 FY22 QuickFee implemented increased borrowing interest rates well ahead of market price increases, which only recently began reflecting in revenue yields in Q4 as loans mature and interest is fully recognised.
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QuickFee Ltd. published this content on 18 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 July 2022 22:33:06 UTC.
