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CV Check Limited (ASX: CV1), offering online background screening and verification services, has released its Investor Presentation on 26 March 2020, updating the market on its recent achievements, go to market strategy and other business-related aspects.
On the same day, the CV1 stock was buoyant and closed the session higher at $ 0.065, climbing up 27.45%. CVCheck’s market cap stands at over $ 14.9 million.
Source: Investor Presentation 26 March 2020
CV Check’s Multi-check Technology Platform features a live environment with distributed, geo -redundant, scalable cloud infrastructure, containerized, serverless, micro -service architecture, Integrations, RESTful API, multi-product enabled, privacy and security by design and workflow automation with simple AI. The company is presently working to leverage its API and white label solutions while further embedding machine learning and AI. Besides, continuedexploration of emergent technology remains underway.
Highlighting the importance of checking at source to obtain a clear picture of a candidate’s facts, data, history, culture and values,CVCheck stated that 53% of job application contain inaccurate information, 28% of people admit to lying in their application, and 25% of all candidate screening results contained some form of discrepancy, as indicated by different market studies.
Having said that, the Company’s Go-to-market strategy looks like this:
Covid-19 –CVCheck’s Rapid Adjustment to Evolving Conditions
The Company has been keeping an eye on the ball amidst the global economic and financial disturbances caused by the Covid-19 outbreak and is well placed with resilient revenues owing to its diverse client base; diverse industry coverage;limited exposure to sectors with large downside risk such as Education, Hospitality, Gaming and Retail which are presently most affected by COVID-19. Furthermore, care and government volumes are going up.CVCheckhas delivered pre-emptive communications to staff, customers, investors, suppliers and other stakeholders.
Source: Investor Presentation 26 March 2020
As for work adjustments, the Company operations are successfully running as 95% home-based with 100% capability enabled. Meetings are being conducted online or by phone and all work-related plane travel has been cancelled. CVCheck will update investors on significant business impacts as per continuous disclosure.
Recent Achievements
- Launch of Phase 1 of strategic alliance with Xref to provide a best-of-service solution for candidate verification across Australia and New Zealand.
- CVCheck is the first background screening company in the APAC region to integrate with LinkedIn’s Talent Hub.
- Successful white label platform commercialisation, now in use across 18 large enterprises.
- 30% increase on pcp in NZ revenue.
- Widened gross margins to 56%.
- Broadened C-Suite Executive Leadership group, increasing growth potential.
Impressive Financial Performance
CVCheck has had a sustained shift to higher quality revenue while it also recorded positive cash across the past five (5) quarters. B2B constituted 70% of the FY19 revenue while the Annual Recurring Revenue (ARR) has been rising strongly with $ 9.8 million booked in the 12 months ending December 2019. There has been an increase in sales across product range which has driven the gross margin to expand 2% in the first half of half 2020 (HY20) to 56%.
Source: Investor Presentation 26 March 2020
The wider margin has been achieved on the back of product diversity as the Company has begun to focus on lifting multi-check sales. The Company specifically mentioned of the opportunity in non-criminal history checks segment as it constitutes 70% of FY19 sales in New Zealand and 10% of FY19 sales in Australia. In the first half of 2020, the Company’s business performance in Australia drove the revenue from other product to 23% of the group revenue.
Road Ahead
As the Company continues to endure the market headwinds on a sound operational and financial footing, the future looks promising with its sustainable, growing organic business wherein B2B revenues are the primary growth engine while B2C remains important. Meanwhile, CVCheck is also analysing potential for strategic acceleration opportunities and has around $ 5.8 million cash as at 31 December 2019.
