Global fintech leader in automated VAT claim and return solutions, Way2VAT Ltd (ASX: W2V) announced record quarterly revenue and cash receipts on the same period last year in its Q3 FY23 update.
“We’ve experienced our best ever third quarter,” said Way2VAT Founder & CEO Amos Simantov. “Revenue is up 110% and cash receipts increased 240% as global travel and business operations returned to normal post-COVID levels. We are on an accelerating growth trajectory as we bring on new multinational clients, and further integrate our complete product portfolio across markets.
“In a sign of growth in business volumes and VAT reclaim submissions, our accounts receivable has increased further to $3.7 million. These are predominantly fees due to be received upon payment of client VAT claims by government taxation authorities for foreign VAT. This also includes fees to be received from clients directly for domestic VAT work finalised during the quarter.”
“Growth in accounts receivable is a clear sign that Way2VAT’s business volumes and VAT submissions are growing at a faster rate than collections from tax authorities leading to higher cash receipts in the future periods. We are monitoring this situation closely as the timing of cash receipts might impact the need for further capital, should it be necessary.”
During the quarter, Way2VAT signed new deals with large enterprise clients, taking enterprise client numbers to approximately 340 including Spanish companies Frit Ravich, Primaflor, Obramat and Uriach, and German company Pfleiderer. The company has also expanded its relationship into more subsidiaries within Globalia Group, Spain’s largest tourism and transport holding company, initially signed in 2022.
“Quarter-four is seasonally the strongest period of the year for Way2VAT. Building on the momentum of the past few quarters, we are primed to increase transaction volume and revenue in Q4 as clients submit their receipts to meet financial year deadlines in many jurisdictions. This should be further bolstered by the reduction in time that tax authorities are taking to administer claims, allowing us to receive cash receipts quicker.
The company also confirmed its operations in Israel were affected by the current situation as 90% of Way2VAT’s clients are based in Europe and the UK, and the company derives 90% of revenue from there. In addition, 80% of staff are based in Spain, the UK and Romania. The corporate headquarters in Tel Aviv remains open.
As part of our growth strategy, Mr Simantov confirmed the company is also examining various acquisition options where it makes sense from a complementary business and product suite perspective and where it adds shareholder value.
“With three quarters of the financial year now complete, several recent client wins successfully onboarded, and looking ahead to the seasonally strongest quarter of the year for our business, Way2VAT is set to finish 2023 full of momentum.”
Way2VAT is a global fintech leader in automated VAT/GST claim and return solutions in over in 40 countries and in over 20 languages, serving hundreds of enterprise businesses worldwide. Way2VAT owns and operates a patented artificial intelligence technology that powers the world’s first fully automated, end-to-end VAT reclaim platform.