Job search site AD1 Holdings (AD1:AU) reported annual group revenue of AUD 6.4 million (USD 4.1 million), an increase of 7% on the prior corresponding period of FY21. At the same time, cash receipts from customers stood at AUD 7.3 million (USD 4.7 million), an increase of 8% over the previous year.

The group’s annual results follow its business update published last month for the fourth quarter and full year ended June 2022.

AD1 Holdings said the increase in cash received was predominately due to the timing on unearned income. The results include an accrued research and development tax incentive for the current year of approximately AUD 1.3 million (USD 0.8 million), reflecting the group’s investment in technology and product.

AD1 Holdings Chief Executive Officer, Brendan Kavenagh said, “We are pleased to have achieved a solid year of growth with key customer wins across the group. Over the course of the year, we invested heavily into sales and marketing, development of products, and technology to set a strong foundation for growth, and we have already seen benefits with increased upsell activities, new customer wins and renewals.”

Net loss for the period includes non-cash share-based payment expense of AUD 589,217 (USD 381,176).

Within the Art of Mentoring business, AD1 Holdings saw a strong growth trajectory delivering a growth of 36%.

During FY23 the ApplyDirect business maintained its customer base, grew by 9.5% and are currently in the process of migrating all clients over to a new platform which will deliver better features, lower operating cost levels and less reliant on legacy platform knowledge within the team. Last month the group also announced that ApplyDirect customer, the Victorian Government, has renewed a Managed Service Agreement (MSA) for the Careers.Vic website for an additional three-year term.

The USS (Utility Software Services) division entered into a licence agreement commencing 1 September 2023, therefore the focus has been to exit the operating of this business and handing over the operating procedures to new licensee for commencement in September 2023.

Kavenagh said, “Moving into FY24, we are well positioned to capitalise on a strong pipeline of contract wins which continues to grow year on year. AD1 will remain focused on executing its growth strategy and deliver on its geographic expansion, specifically in North America, while further improving its product suite and growing its portfolio of SaaS (Software-as-a-service) businesses.

“AD1 continues to pursue cost savings to reduce the operating costs of the business,” Kavenagh said. “This will be achieved through the exit of operating USS within the group, whilst all costs are being reviewed and removed where possible.”

AD1 Holdings shares closed at AUD 0.008 (USD 0.0052), up 14.29% on the day and 100% above the 52-week low of AUD 0.004 (USD 0.0026) set on 10 July 2023. The company has a market cap of AUD 5.76 million (USD 3.7 million).