CV Check (ASX:CV1) share price rockets 9% on business update

The company is experiencing an explosion in growth.
The post CV Check (ASX:CV1) share price rockets 9% on business update appeared first on The Motley Fool Australia. –

The CV Check Ltd (ASX: CV1) share price is storming ahead today following the release of its fourth quarter results.

At the time of writing, the online integrated screening and verification company’s shares are up 9.68% to 17 cents.

Let’s take a closer look and see how the company performed for the 3 months.

CV Check delivers record growth

Investors appear excited by the company’s latest trading update, sending CV Check shares to a 5-month high.

For the quarter ending 30 June, CV Check achieved group record revenue of $6.4 million, a 262% increase on the prior corresponding period. The strong result was driven by growth in the Australian and New Zealand economy as well as the acquisition of the Bright People Technologies (BPT) business.

Net cash from operating activities during Q4 FY21 came to $585,000, adding to its FY21 total of $1.5 million.

CV Check declared a healthy cash bank balance of $12.9 million with no external financing. During April, $1.3 million was paid to clear BPT’s outstanding debt.

Annual Recurring Revenue (ARR) stood at $13.3 million, compared to $11.1 million at the end of March 2021. This reflects a growth of 19.8% and a record for 12-month booked ARR.

The CV Check platform delivered $5 million in revenue for Q4 FY21, up 104% from this time last year ($2.4 million). B2B integrations with HR information systems and applicant tracking systems contributed $0.7 million. Notably, this represents a massive 420% gain over the prior comparable period.

In addition, the company won new customers during the quarter with several booking their first orders. They included Rheinmetall Defence Australia, Think Childcare, Water NSW, Whitehaven Coal, Winning Appliances Group, among other brands.

What did management say?

CV Check executive chair, Ivan Gustavino commented on the result, saying:

As expected, the quarter under review was a significant period of consolidation for CV1 after the acquisition of BPT. That the business was still able to deliver record revenues for a quarter and for booked 12-month ARR speaks volumes of the calibre of the team. Across both sides of the business, all channels performed strongly: direct sales revenue, revenues booked through integration partners and revenue from the international wholesale sales channel.

CV Check share price summary

It has been a whirlwind 12 months for CV Check shareholders. The company’s shares reached as high as 21 cents in February and then fell to 12 cents a few months after. The CV Check share price is up almost 90% in the past year but is down 10% in 2021.

Based on today’s price, CV Check presides a market capitalisation of roughly $72.9 million and has 428 million shares outstanding.

The post CV Check (ASX:CV1) share price rockets 9% on business update appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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