QuickFee Limited (ASX: QFE) Reports Q2 FY25 Revenue Growth
Strong Revenue Growth
QuickFee Limited (ASX: QFE) has reported record revenue of A$6.2 million for the quarter ending 31 December 2024, marking a 22% increase from the previous year. This growth reflects strong performance in its core finance products in both Australia and the United States.
Adoption of Connect and Integration Success
The company’s Connect product showcased significant adoption, with 17,000 firm invoices delivered, an increase of 42% quarter-on-quarter. Furthermore, QuickFee signed up 95 firms for Connect, achieving a quarterly growth of 38%. The new integration with PracticeERP, launched in December 2024, is expected to bolster growth in 2025.
Operational Performance
In Q2 FY25, the US Finance (Pay Over Time) revenue rose 17% to US$0.7 million, while the Australian Finance revenue surged by 42% to A$2.7 million. Total transaction volume (TTV) in the US reached US$10 million, a 30% year-on-year increase, with the Australian Finance TTV also showing a healthy 12% year-on-year growth.
Profitability Outlook
QuickFee is on track for profitability with a positive EBITDA reported for Q2 FY25, and maintains its earnings guidance for FY25 at A$1.5 – A$2.5 million. The company remains focused on disciplined cost management while pursuing further growth opportunities across various sectors.
Executive Comments
Dale Smorgon, Non-executive Chairman, expressed confidence in the company’s trajectory, stating, “Our growth trajectory remains on track with quarterly revenue up 22% year-on-year. We are encouraged by the opportunities ahead, particularly in diversifying our US revenue.”
Jennifer Warawa, North America President, added, “We are very pleased with the strong increase in invoices delivered via Connect and our robust onboarding pipeline. Demand for our solutions remains strong, reinforcing our growth confidence for the second half of FY25.”
Motley Fool contributor Aaron Shaw 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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