Why CV Check could scale fast and big

CV Check (ASX:CV1) recently achieved a third straight profitable quarter based on $12.4M in revenue, of which $9.2 was in annualised recurring revenue.

In itself , this is a great result and another example of an Australian company making it on the global stage. I have posted the key financials from the announcement below my interview with CEO Rod Sherwood.

But what strikes me as even more exciting about CV Check's future, lies in their realisation of the power of the white label.

A Software as a Service business has two basic sales options.

First it can work on building its own brand. Second, and this is the option that CV Check has adopted, it is now providing it's technology platform as a blank - white label - to allow companies to call it their own. This provides white label clients a deeper level of service, without the costs of developing the tech themselves.

I think you'll see more companies with rich deep tech, like CV Check adopting this strategy.

Even some of the biggest players, in any given industry vertical can struggle with the time and costs associated with developing their own non-core technology.

Plus, as CV Check pointed out in its recent announcement, a large part of its success has been driven by new, large enterprise wins.

Once you get the right customers, you can then set about increasing average revenues by offering

deeper service options and improvements.

CV Check Q4FY19

•$27k positive cash flow - operating and investing cashflow up $701k pcp or +104%

• $3.1 million Q4 revenue, 71% B2B - $3.2 million cash receipts, minus 4% on pcp due to lower B2C volume

• Annualised Recurring Revenue (ARR) of $9.2 million driven by new large enterprise wins and rising average revenue per account

• Year-end cash balance $3.1 million

• Sales team strengthened in June to accelerate large enterprise and corporate sales

• Successful white-label solution launched to B2B customers

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