QuickFee Limited (QFE) Earnings Call Transcript

My name is Jennifer Warawa, and I'm the President for QuickFee North America, and I'm excited to share a brief overview of our financial results and key highlights for the quarter ending 31st December 2024. Our Q2 revenue was up 22% on the prior corresponding period to AUD 6.2 million, reflecting the continued strong growth in our core finance product, both in Australia and the U.S. with a record lending quarter in the U.S. and the second highest in Australia. In the past quarter, we were very pleased to see the increasing adoption of Connect in the U.S. Connect is our scalable accounts receivable automation solution that's designed specifically for accounting firms. Connect automatically e-mails firms invoices to their clients with a link to the QuickFee payment portal and drives new subscription revenue streams as well as increasing all products transaction volume as it directs firms' clients to pay online rather than by check. Connect has been a real focus for us over the last year, and we've made great traction in this past quarter with total firm invoices delivered by Connect, up 42% quarter-on-quarter. We now have 95 firms signed up for Connect as of the 31st of December 2024, which is up 38% quarter-on-quarter. Last December, we launched our fifth Connect integration with Practice ERP, and we have a strong onboarding pipeline to connect in 2025 through a large private equity accounting firm consolidator, which is standardizing the use of QuickFee Connect across its portfolio firms. In the past quarter, we also gained traction in secondary verticals, which we've been talking about for quite some time. Our primary vertical is accounting, but we now have positive momentum in several other verticals as well, including legal, government contracting, executive search and other professional services businesses. Our Australia business continues to grow year-on-year. And overall, we're seeing strong demand for our unique payment solutions, and we remain optimistic about the outlook for the second half. Importantly, our path to profitability is on track with positive EBITDA in Q2 FY '25. And our FY '25 earnings guidance remains unchanged with FY '25 EBITDA in the range of $1.5 million to $2.5 million, with a stronger second half. We invite you to check out our full Q2 business update, which you can find in our investor hub.