The cash receipts from customers of Spenda Ltd (ASX:SPX) hit $1.81 million in the fourth quarter of 2024, a 26% gain on the prior quarter, while over the full year cash receipts jumped 52% to $5.4 million.
This comes as the innovative software company, which provides electronic payment solutions across supply chains and trading networks, made significant progress during the quarter on its existing partnerships with Carpet Court, Capricorn, eBev and AirPlus.
Looking ahead, Spenda expects the acquisition of Limepay to further accelerate its growth trajectory. The company says that Limepay’s capabilities align with Spenda’s core strategy and will enhance the speed of execution of existing customer contracts and will scale payment flows across the combined entity.
Strong quarter and financial year
Total payment volume on Spenda’s platform was up 160% in FY24, from $96 million in FY23 to $250 million in FY24, primarily due to increased volumes through the Carpet Court network.
In the fourth quarter, total payment volume was up 30%, from $54 million in Q3 FY24 to $70 million in Q4 FY24. This was off the back of a seasonally weak third quarter.
Spenda held cash and cash equivalent of $9.8 million as at the quarter end.
Key highlights from the company’s quarterly report include:
- Stable payment volume - Spenda’s platform achieved a stable business-to-business (B2B) payment volume of about A$20 million per month from the rollout of Spenda AR to Carpet Court's Head Office. The company anticipates further business-to-consumer (B2C) payment rollouts ahead of the expected standard operating environment (SOE) launch later this quarter.
- Capricorn milestone achievement - The second performance milestone for the Capricorn Direct Supplier Delivery (DSD) project was successfully completed. The commercial launch of the new payment infrastructure for Capricorn remains on track for the first half FY25. Spenda has so far received more than half of the $1.3 million initial development fees.
- AirPlus growth - There has been continued strong growth in AirPlus facilities with new and existing clients, resulting in total approved limits of $6.5 million as of June 30, 2024. A further $2.6 million is now in the application phase. This growth generated more than $200,000 in revenue in the fourth quarter of FY24, up from $35,000 in the third quarter of FY24, marking a 474% increase. Continued adoption of Spenda AP and growth in AirPlus facilities are expected in FY25.
- Product line scaling - All product lines, including Spenda AR, Spenda AP and the Payment Widget, experienced continued scaling in the fourth quarter. Corresponding software-as-a-service (SaaS) software licensing fees are also expected to see further growth across all channels in FY25.
Spenda is focused on a ‘land and expand’ approach, beginning with initial projects at the buying group or franchisor level to establish trust and credibility. This approach aims to develop long-term relationships that facilitate digital transformation across the client’s entire supply chain, from consumer to manufacturer.