Australia-based job search site AD1 Holdings (AD1:AU) reported cash receipts totalling AUD 1.44 million (USD 950,630) in the second quarter ended 31 December 2023, representing an increase of 12% compared to the same period a year ago.

The group said it had continued to progress in line with its new strategic direction prioritising cost efficiencies without impacting the ability to deliver revenue growth to deliver a strong and sustainable business model.

Q2 2024 also saw a 207% increase in net cash against the prior year period to deliver a cash flow positive quarter of AUD 0.5 million (USD 330,080). This is inclusive of AUD 420,000 (USD 277,267) one-off costs that are attributed to corporate restructuring. These costs, if calculated on a normalised basis, would represent an improvement of 449% over the prior year period.

AD1 Holdings CEO Todd Perkinson said, “We are pleased to have completed a quarter of significant transformation of the AD1 group. Our continued focus on a new strategic direction across restructuring, implementing cost controls and maintaining a strong pipeline has been positively reflected in an ARR (annual recurring revenue) increase over the quarter. Not only have we been contracting new customers, but existing customers have expanded programs and users within the platforms. The group is well positioned with a strong pipeline of potential new customers across Australia and North America.”

The Art of Mentoring (AoM) division secured contracted revenues from new business for the quarter of AUD 375,000 (USD 247,560) attributable to its US division. The US division successfully renewed all existing customers with many significantly expanding their scope or signing longer dated typically 24-month contracts. Total contracted revenues for the AoM’s US business stood at AUD 725,000 (USD 478,587) with a major government customer on the second year of a five-year contract.

The Australian division of AoM also delivered strong growth from increased demand amongst economic headwinds with strong renewals across the customer base. Over $1.3 million (USD 858,156) in customer renewals has been completed throughout H1 FY24.

New business for H1 FY24 for the AU division attracted over AUD 350,000 (USD 231,042) in new business. Of this, 60% is from new customer wins and the remaining 40% from existing customer growth. Overall, AD1’s AoM division has observed steady growth throughout the quarter and the company’s focus has remained on improving digital infrastructure, on-boarding efficiencies, and implementing new strategies to expedite deal closures.

Total pipeline across the AoM group is AUD 3 million (USD 1.9 million) in total contract value, a significant portion targeted to be closed within Q3 2024.

The ApplyDirect division reported an increase of 47% in unaudited revenue growth to AUD 270,000 (USD 178,229) for the quarter. The business said it has continued to implement cost reduction, the full benefit of which is expected to be realised in H2 2024.

AD1 said it has made substantial investments in restructuring the business’ strategic direction and operating model to achieve sustainable growth and align operational costs with the business’ scale. This initiative resulted in successful annual cost reductions, coupled with revenue growth, it added.

AD1 Holdings shares last closed at AUD 0.005 (USD 0.0033), no change on the day 25.00% above the 52 week low of AUD 0.004 (USD 0.0026) set on 17 November 2023. The company has a market cap of AUD 4.49 million (USD 2.9 million).