CV Check sales rise as HR tech cannibalises recruiter labour

The trend in the global workforce landscape has changed as companies realise they can drastically improve efficiency and automation simply by engaging HR technologies to hire and manage talent in the workplace. This puts HR tech companies like CV Check (ASX: CV1) into the loop of future success, as it has just reported an astonishing $6.9 million revenue in the September quarter which is a 9% increase from the previous corresponding quarter.

CV Check’s main purpose is to ensure that workplace compliance requirements are met at all times in the most efficient way. This includes pre-employment background checks, validating digital IDs, and ongoing compliance management and reporting. CV Check has proudly served more than 10k customers and is looking forward to expanding their technology to North America and Europe. So far, CV Check has been performing well as the September quarter is their ninth consecutive in generating positive cash flow. The Company ended the quarter with a strong balance sheet as it has successfully gained $0.2m in cash from operating activities while remaining debt free. 

Backing themselves to increase shareholder value, CV Check commenced an on-market share buyback during the September quarter, deploying $166k to acquire 1,525,902 shares. This was a nominal buyback with the Company closing out the September quarter with $11m in cash on hand.  

“Quarter one has seen strong continued growth in an uncertain economy including our SaaS revenue reinforcing the validity of the strategic direction. The company continues to be Cashflow positive from operations underpinning our ability for ongoing investment in accretive growth,” said CEO Michael Ivanchenko.

Although they have been working with blue chip clients such as Flybuys, Corrs Chambers Wesgarth Lawyers, and Federal Court of Australia, CV Check incurred a net loss of $1.5m in FY22, 49% higher than the previous financial year. However, the loss could be partially attributed to the company’s relocation to a new premise as well as acquisition of Bright People Technology that cost the company $660k to finalise. This acquisition would create a credentials-based workforce management capability by integrating Bright’s workforce compliance strength to CV Check platform’s highly automated verification workflows and HRIS integrations.

Moving forward, the Company aims to upgrade its current technology with more features such as biometric identity validation, automation, and Artificial Intelligence.