Way2VAT Ltd (ASX:W2V) is finishing the year strongly, recording an annualised gross transaction volume run rate of $A19.47 million, which includes transactions coming from its recent acquisition of DevoluIVA.
The run rate is a 43% increase on the previous 12 months (FY21 $13.57 million), and up 169% on FY20 (FY20 $7.24 million).
The company cites operating conditions for business travel returning to pre-COVID levels, increasing usage through platform partners and enterprise customers, successful integration of the recent DevoluIVA acquisition and the broadening of the product suite with the introduction of the Smart Spend Debit Mastercard (NYSE:MA) for its positive performance.
W2V, a global leader in automated VAT (value-added tax) claim and return solutions, has also highlighted the expansion of its full product rollout throughout Spain as a further milestone.
The company operates in more than 40 countries and its patented artificial intelligence technology that powers the world’s first fully automated, end-to-end VAT reclaim platform, is used by more than 220 enterprise companies including TicToc, Duracell, Playmobil, Amdocs, EY Israel, MasterCard, eToro, Kimberly-Clark (NYSE:KMB), Hitachi ABB, Mobileye Intel (NASDAQ:INTC), RB, Willis Towers, SiemensIsrael, Daily Mail Group, Sage, Falck, Boston Red Sox and Foot Locker (NYSE:FL) Europe with customer retention more than 97%.
Pre pandemic positivity
Way2VAT CEO and founder Amos Simantov said, “Way2VAT is expecting a strong finish to FY22, traditionally a strong time of year, with business travel beginning to normalise. Importantly, we expect to see a reduction in the time tax authorities take to process our claims, returning to the pre-COVID average of 7.5 months over time.
“This processing time, from when we submit our claims to tax authorities (and recognise our fee as revenue) to when we receive it (and it appears in our cash receipts) had blown out to 15 months in several jurisdictions during COVID lockdown periods.
“We are now operating at an annualised gross transaction volume rate of $19.47 million – a jump of 43% above last year. We have seen a significant increase in transaction volume through business travel expenses and accounts payable and VAT claims following the European summer.
“Finally, our integration of DevoluIVA is progressing well. We are already recognising significant transaction volume and revenue through their national network and looking to fully harness the full product suite into Spanish-speaking markets with similar accounts payable, expense and VAT structures.”
W2V expects several factors to improve its bottom line into the next financial year including new technology and normalisation of post-COVID business and travel:
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