Xref (XF1) H2 2024 earnings summary

Executive summary

• Underwent a major transformation, expanding from reference checking to a full talent journey SaaS platform, including Xref Engage and Trust Marketplace, with a focus on cross-selling and upselling to existing and new clients.

• Migrated 906 clients to SaaS contracts, with SaaS revenue now over 60% of total revenue, decoupling revenue from recruitment cycles.

• Integrated Voice Project (now Xref Engage), boosting engagement survey sales and cross-sell opportunities.

• Reduced headcount by 25%, consolidated offices, and returned to positive cash flow in the final quarter.

• Initiated a strategic review following acquisition interest from private equity; process ongoing.

Financial highlights

• Total revenue for FY24 was $19.86m, down 3% year-over-year from $20.40m.

• Net loss after tax was $5.68m (vs. $3.36m loss in FY23); EBITDA loss of $1.79m (vs. $1.42m loss in FY23).

• Annual Recurring Revenue (ARR) grew 209% to $15m at June 2024 (from $5.6m in July 2023).

• Net cash used in operations was $0.68m, with a cash surplus achieved in H2FY24.

• Cash at bank at year-end was $4.6m.

• Voice Project contributed $4.5m to sales.

Outlook and guidance

• Focus for FY25 on further SaaS migration, cross-selling Engage and Trust Marketplace, and expanding API integrations.

• Continued investment in product development, client self-service, and creative technology partnerships.

• Lean operating structure and scalable technology position the company for growth as market conditions recover.