In October 2022, the recruitment screening company CVCheck, or previously CV1 on ASX, got a makeover: a new name, new identity and now, new staff to see it through its new motto, Know Your People.
It is now the regulatory tech company Kinatico (ASX: KYP), comprising solutions including CVCheck (pre-employment background screening), Cited (cloud-based workplace compliance and management), On-Cite (its native mobile app) and Enable (onboarding, verification and mobilisation management).
In Q2 FY23, the Company earned $1 million in revenue from its SaaS business alone, representing a 59% increase on Q2 FY22 and up 32% from Q1 FY23. The total revenue for this quarter amounted to $6.7 million, up only 3% from the prior corresponding period. Overall, the first half revenue comes up to $13.6 million, up 6% on H1 FY22.
Kinatico CEO, Michael Ivanchenko, commented, “It has been exceptionally pleasing to see Kinatico continue to grow revenue despite the problematic macro-economic environment and efficiency gains previously announced have begun to take effect demonstrating the scale of the business.”
The efficiency gains include laying off 19% of its staff. In Kinatico’s world, the idea of robots taking over human jobs rings true as its tech staff was let go due to redundancies and automation. The layoffs give annualised savings of $1.1 million. At the same time, the Company boosted its sales headcount by 25 per cent.
Headquartered in Western Australia, Kinatico is a global regulatory tech aggregator company operating in Australia and New Zealand. Like its previous identity CVCheck, it focuses on employee monitoring and management. And with the new suite of products, it manages the overall workforce and helps employers meet regulatory compliances.
From employee visa status to health, safety and ESG reporting, workplace compliance is a vast field. It is also expensive, given the intricacies involved. Some companies choose to deflect these requirements onto their supply chains; that just makes it more confusing. Kinatico consolidates these issues and comes up with an automated solution. Not only does it consider governance needs (concerning regulatory compliance) but also consumer needs (demanding greater security).
Ivanchenko expounded, “In the face of this compliance maelstrom, Kinatico’s technology allows businesses to know their people; simply. The Cited and OnCite products solve the problem of real-time compliance monitoring and management. By managing worker credentials and daily compliance workplace requirements in real-time, without creating operational overhead, Kinatico replaces retrospective reporting and shifts the burden from businesses’ compliance teams.”
In the past few months, the Company has grown considerably in emerging sectors, like disability care. Helping such industries be compliant, it has seen an uptick in an H1 uplift month-on-month on an average of 32% growth in supporting organisations with their support workers. Besides that, Kinatico has reached a vast range of employees.
He concluded, “An analysis of Kinatico’s top 50 accounts has found those entities employ more than 1.6 million people globally. The entire Australian workforce is currently 13.8 million.”
The company continues to invest in its on-market buy-back of ordinary shares, with $100k spent in the quarter. With this new identity, Kinatico is set to give the booming HR tech industry stiff competition, one that is likely to land it on top given its broad range of services.
Alinda is a Business Reporter for The Sentiment
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