CV Check (ASX:CV1) share price flat on results update

The CV Check Ltd (ASX: CV1) share price remains unchanged today following the release of its Q2 FY21 scorecard.

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The CV Check Ltd (ASX: CV1) share price is flat today, despite the release of its Q2 FY21 scorecard.

In early morning trade, the online integrated screening and verification company's shares are unchanged at 17 cents.

Image source: Getty Images

How did CV Check perform for Q2 FY21?

According to this morning's release, CV Check advised it booked a robust result over the 3 month term.

For the period ending 31 December, the company reported record revenue of $3.5 million, with $2.7 million coming from B2B, and $800,000 from B2C. The overall sales achieved represented a 12% increase on the prior corresponding period. Underpinned by strong sales during the Christmas period, total website usage and new account sign ups continued to grow.

The surge in quarterly revenue contributed to CV Check reaching new milestone records for its half year and 12 month calendar performance. The company stated H1 FY21 realised $7 million in sales, with $10.2 million in annual recurring revenue (ARR) for the 12 months.

CV Check registered a healthy cash balance of $5.2 million and no external debt for the end of the period.

New notable customers

Complimenting the sound result, CV Check added new customers to its mix over the quarter. These included several large well-known brands such as AECOM (NYSE: ACM), Korn Ferry (NYSE: KFY), Netforce Global LLC, Pfizer (NYSE: PFE), Woolworths Group Ltd (ASX: WOW), and others.

Platform integration rises strongly

CV Check revealed that its platform integration strategy is tracking along nicely. Revenue booked through this channel jumped 87% when comparing to this time last year. The recent successful integration with TechnologyOne Ltd (ASX: TNE) is slated for customer launch sometime in the current quarter.

The company highlighted that assimilating with providers of other HR information and applicant tracking systems will expand its addressable market.

Management commentary

CV1 CEO, Mr Rod Sherwood, welcomed the positive results, saying:

CV1 revenues surged in Q2 to set all-time company records for a quarter, for a half-year and for the booked 12 month ARR. All channels performed strongly: direct sales, revenues booked through integration partners and the nascent international white label channel where our first marquee client Netforce Global LLC already features among our group wide top 30 customers for the quarter.

Looking forward, there are promising signs in both internal and external backdrops. Internally, new client wins have been strong during recent months, resulting in an ongoing pipeline of customer onboarding.

… The external backdrop is also positive with the ANZ job ads series for December coming in stronger than that of February 2020 and consumer purchasing strengthening amid continuing COVID-related government support for the economy and widespread optimism about planned vaccine roll outs domestically and internationally.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended CV Check Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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