CV Check Limited (ASX:CVI) is seeing a strong rise in revenue following the widespread work-from-home culture triggered by the COVID-19 pandemic, which has boosted consumption of its digital services.
New customer wins in recent months continue to offset the pandemic effect.
Record sales were booked in September, outstripping July and August averages, with FY21 first-quarter revenue coming in 40% higher than the prior quarter despite pandemic-related shutdowns in New Zealand and Victoria.
It has seen an over 50% of the revenue growth from the Information Technology sector in the year-to-date, compared to the same period last year.
Work-from-home boosts consumption
CV1 chief executive officer Rod Sherwood said: “Like many other technology businesses, the effect of the widespread work from home adoption has accelerated the transition to consumption of our digital, online, cloud-based services.
“Aided by order from new client wins across the information technology sector, September revenues to date have continued the recovery that commenced in June and this comes despite New Zealand and Victoria extending their recent COVID-19 induced lockdowns.
“Revenue from clients placing orders through integrations with other HR technology platforms also continues to rise strongly when compared to the same period of FY20.”
Strong sales recovery
In the first quarter of 2021, the company recorded revenues of $3.4 million, with platform integrations revenue continuing to rise strongly.
It has a strong balance sheet with cash at bank rising to $5.2 million as at end September and with no debt.
The company set a new sales record for September, driven by a record month in total website users and the highest new account sign-ups in over 12 months from both B2B and B2C customers.
Sherwood said: “A resurgence of CV1 revenues was experienced during the past quarter with record sales being achieved for the month of September despite renewed shutdowns across New Zealand and Victoria.
"New client wins were strong throughout the period before accelerating during September while sales to established customers recovered
IT sector and new customer wins
In its operating update in September, the company said order volume in the Information Technology sector surged, assisted by client wins from notable names such as Ceridian HCM Holding Inc (NYSE:CDAY), Family Zone Cyber Safety Ltd (ASX:FZO), RXP Services Ltd (ASX:RXP), Reckon Ltd (ASX:RKN) and Sage Group PLC (LON:SGE).
CV1 looks forward to continuing its key role to underpin best practice people risk management within this growth sector.
First orders were also booked during the quarter from notable new customers such as Amaysim Australia Ltd (ASX:AYS), the Australian Digital Health Agency, Sigma Healthcare Ltd (ASX:SIG), Village Roadshow Ltd (ASX:VRL) and many other well-known brands.
These client wins were aided by the CV1 platform offering a comprehensive range of screening and verification products, the broad number of integrations in place with other key HR technology platforms and the strong performance of our customer engagement teams.
The company said its integration with HR technology platforms was gaining traction with each new integration expanding addressable markets.
Integrations bring higher margins and increased scalability in its target market.
Three new builds are currently in progress.
COVID-19 new normal
The company noted that society was adapting to the new normal, which included businesses requiring flexibility as staff worked from home.
High volume sectors have adapted to the COVID-19 pandemic scenario.
It is strongly positioned, leveraged to B2B and integration-led growth.
CV1 is focused on delivery full service to work-from-home customers and is positioning itself with a cost base that is responsive to revenue, and order flow.
The company has low exposure to the industries hardest hit by the pandemic.
Work in progress
The company said it planned to leverage its integration solution and further embed machine learning and artificial intelligence.
It will also continue exploring emergent technology.
New Zealand’s RealMe digital ID integration
The company has implemented a live launch of its most recent technology integration with RealMe, the digital identity service managed by New Zealand’s Department of Internal Affairs.
To integrate with the RealMe verified service, CV1’s New Zealand subsidiary became a participating agency under New Zealand’s Electronic Identity Verification Act of 2012.
RealMe, an initiative of the NZ Government, was launched in 2013 to make it easier and more secure for people and organisations to access and use online services offered by both the government and the private sector.
CV1 chief executive officer Rod Sherwood said: “CV1 continues to broaden its addressable market through expanding its ecosystem and customer take up with each new technology partner integration.
“Digital ID and verification of an individual through their digital ID is a revolutionary technology trend that is being used by more and more governments to allow individuals to interact with public institutions and it is rapidly being adopted in the private sector.
The RealMe service validates that an identity exists and creates a link to the person claiming it.
RealMe uptake has accelerated greatly since 2017 with over 785,000 verified identities issued and is now recognised as a leading digital identity service across Australasia and continues to win industry awards.
Sherwood said: “Not only is this new integration already in use by our customers, it also opens a wealth of new opportunities to CV1."
Proprietary online platform cvcheck.com
CV1 is an expanding business with growing revenue streams through the provision of its check products to employers, industry associations and individuals via the CV Check brand on its proprietary online platform cvcheck.com.
It has been operating for more than 10 years and in the process has developed a world-class online platform providing a comprehensive range of checks across the globe.