Way2VAT (ASX:W2V) reports a blockbuster March quarter with strong sales momentum

Highlights

• Way2VAT recorded a 7% boost in its SMB clients, which increased from 700 to 750 with several new partnerships.
• The fintech company added 10 new multinational enterprises to its customer base including Playmobil, taking the tally of enterprise customers to 210.
• The company entered into a partnership with Circula, the largest expense management solution provider in Germany.

Global fintech company, Way2VAT Ltd (ASX:W2V) has emboldened its position in the small and medium sized business (SMB) market as a leader of integrated VAT claim and return solutions with a set of significant developments during the first quarter of the current fiscal year ended 31 March 2022 (Q1FY2022).  

The company clocked strong growth in sales and revenue across business divisions during the reporting period due to its continuous strive for building new technology and diversifying the company product line. Currently, Way2VAT is operating in over 40 countries and holds platform presence in the three central European countries of Austria, Germany, and Switzerland.

Here’s a snapshot of the Company’s achievements over Q1 FY22

Way2VAT builds up its network of enterprise clients

Source: © Ivelinr | Megapixl.com

Way2VAT’s enterprise client base saw a massive expansion with 40% increase over the last one year. The total number of enterprises now stands at 210 after Way2VAT inked fresh agreements with ten prominent multinational players in the March quarter.

During the quarter, Way2VAT and Playmobil signed an agreement, wherein the latter will access Way2VAT’s VAT/GST claim and return solution for its European operations. Playmobil is one of the world’s top-30 entertainment and toy manufacturers having a distribution channel spread across 100 countries.

RELATED ARTICLE: Way2Vat (ASX:W2V) inks deal with Germany’s largest toy manufacturer, shares jump 4% 

The March quarter also witnessed the collaboration of Way2VAT with various other enterprise clients, such as Super Smashing Ltd (Blink), Resources Global Professionals, TalkTalk Telecom Group Ltd and Luxoft Professional LLC.

In addition, Way2VAT entered into new partnerships with several platforms, like Allocate, Elmo, Yokoy, Zoho and Xero during the quarter. Consequently, the total number of SMBs that utilise Way2VAT capability increased by 7%, from 700 to 750.

ALSO READ: Way2VAT’s (ASX:W2V) latest partnership deepens its SMB product reach

Solid financial position

The ASX-listed firm recorded an increase of 62% in the transaction volume to AU$2.23 million from AU$1.38 million in the prior corresponding quarter (Q1FY21). Also, the cash receipts saw a jump of 45% from AU$243k in Q4 FY21 to AU$354k in the March quarter. As at 31 March 2022, Way2VAT had a cash balance of AU$2.674 million.

Product line enhancement

The company has reached the final stage of development of a complementary product for the VAT/GST automated platform. Designed using AIA (Automated Invoice Analysis-Way2Vat Patented technology), AI and computer vision technology, the new product will scale up the potential of VAT reclaim as well as firms’ revenue.

Way2VAT has also made great progress in the development of a new web application for full administration of users, corporate debit cards and expenses, and a new mobile application for cardholders/employees to track and manage their own expenses on the go. The company has reached the ‘production-ready’ status for the two applications.

Fresh patent applications

During the quarter, Way2VAT filed two new patent applications at the International Patent Office. One full patent application has been sent for review for ‘Systems and Methods for Document Image Analysis by Alignment of Document Image Sets to Spreadsheets’. Also, a patent application was filed by Way2VAT for AIA for complete automation of VAT ID.

ALSO READ: Way2VAT makes inroads into UK market with new Allocate deal

Significant developments after reporting period

• Way2VAT has sealed a deal with Circula, the largest expense management solution provider in Germany, to offer Circula clients Way2VAT’s automated VAT claim and return solutions product for SMBs through two seamlessly integrated systems.
• Way2VAT and Railsbank entered a partnership to launch the Smart Spend Debit Mastercard® – the world’s first spend card for the SMB and Enterprise market that fully automates VAT/GST returns from end-to-end. Using the card, the companies will be able to submit spend receipts and receive invoices via Way2VAT’s proprietary technology platform.

Outlook for the year ahead

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On the back of March quarter’s sturdy growth momentum, the company is expecting to continue its upbeat performance across all revenue streams in the coming quarters.

Way2VAT Founder & CEO Amos Simantov commented, “The next 12 months are shaping up to be a very exciting time for the company. The world’s first debit card with a VAT/GST embedded engine, our new Smart Spend Debit Mastercard will enable companies to improve their expense management and payment solution while saving costs as well as boosting their bottom line. In addition, as part of our growth strategy to expand the product line, we are finalising a complementary product for our VAT/GST automated platform based on AIA (Automated Invoice Analysis – Way2VAT Patented technology), AI (Artificial Intelligence) and computer vision technology.”

He further added that such product initiatives will provide additional scale for the company’s patented technology platform. These initiatives will fuel W2V’s revenue growth by harnessing the accelerating trend for companies to automate and digitise their tax and compliance-related processes.

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W2V stock was trading at AU$0.059, up by 1.724% on the ASX on 29 April 2022.