Job search site AD1 Holdings (AD1:AU), previously known as ApplyDirect, announced a business update for the first quarter ended 30 September 2020.

The group reported cash receipts for the quarter were approximately AUD 864,000 (USD 608,696) representing an increase of 37% compared to the prior year. Normalised cash receipts of approximately AUD 1.1 million up, 45% on prior year reflecting delayed receipts of AUD 245,000 (USD 172,476) carried as receivables at 30 September 2020, the group stated.

The company also recorded its second cash-flow positive quarter adding AUD 153,000 (USD 107,709) to the company’s cash balance.

Operating expenses for the quarter were AUD 1.1 million (USD 774,383), a decrease of approximately 42% compared to the prior year. The company also received an R&D credit (research and development tax incentive which provides an offset for eligible R&D activities) of approximately AUD 0.4 million in the quarter.

On 30 September 2020, the company announced its acquisition of SaaS (software as a service) business, Art of Mentoring (AoM). The acquisition was completed on 26 October 2020.

During the quarter, the company also extended its Managed Services Agreement with the Victorian Government for up to three years and signed new multi-year contracts with Powerclub and 3P Energy.

AD1’s CEO, Prashant Chandra, said, “During the first quarter of FY21, the company signed important contracts with Powerclub and 3P Energy. They add materially to the company’s revenue once implementation commences and also have the potential of significant growth over the term of the contract as the number of meters managed via our platform continues to increase.”

“Powerclub has been implemented and is revenue generating with 3P Energy expected to commence implementation later this quarter,” Chandra said. “The acquisition of Art of Mentoring is another exciting milestone for the business. A compelling strategic fit for AD1, it adds a diversified revenue stream to the business and has great synergy with AD1 in both customer opportunities and technology. The integration of AoM is underway.”

“The company raised AUD 2.5 million (USD 1.7 million) in an oversubscribed placement in October 2020 to fund the acquisition. It was important to our acquisition strategy that the placement was right-sized for the acquisition,” Chandra said.