Way2VAT Ltd (ASX:W2V) has achieved a 92% quarter-on-quarter growth in revenue to $797,000 for the three months ended 31 December 2022 (Q4 FY22), driven by higher transaction volumes and integration of its recent Spanish acquisition.
Transaction volumes for the automated VAT claim and return solutions provider are up 57% year-on-year to $21.33 million with expansion into new markets reinforced by new enterprise clients.
Way2VAT founder and CEO Amos Simantov said: “This quarter was an excellent result.
“We are now seeing the ability of our platform to scale as transaction volume and revenue increases, and our cash receipts are growing more quickly as the lag time between transaction volume being processed and final returns from government tax authorities decreases.
“Our overall transaction volume is considerably higher than the same period last year – up 40% on the previous corresponding quarterly period, and for the 12 months to December up 57% on the previous year, showing we are in line with expectations for growth, and demonstrating the immediate benefits of entering the Spanish speaking market through our acquisition of DevoluIVA.”
Successful integration of DevoluIVA
Following the acquisition in September of Spanish VAT automation business DevoluIVA S.L.U, the two companies have successfully integrated their systems.
DevoluIVA offers comprehensive management of corporate expenses and the automatic recovery of national VAT services with an established network of 60,000 users and over 130,000 merchants.
The acquisition will also support the rollout of the world's first Smart Spend Debit Mastercard throughout DevoluIVA’s established network.
Simantov added: “The return of business travel to pre-pandemic levels and improving market conditions means we are seeing more submissions.
“In addition, the time lag between submissions and approvals from tax authorities is starting to decrease.”
“Our integration with Spanish VAT automation business DevoluIVA continues smoothly, bringing immediate gains with the contribution of new SMB and Enterprise clients, for the use of DevoluIVA’s travel and expenses app and VAT claim and recovery solution for its Spanish operations.
“We are already recognising significant transaction volume and revenue through their national network.
Enterprise clients
During the quarter, Way2VAT signed 25 new deals with major enterprise clients, taking enterprise client numbers to 250.
Key companies included:
- BASF Spain with 2,000 employees is part of the world's largest chemical company with a broad product portfolio: chemicals, plastics, services, oil, natural gas, and innovative and useful solutions for agriculture;
- Max Mara is a major global fashion retailer that specialises in executive and modern ready-to-wear women’s clothing. Headquartered in Reggio Emilia, Italy, Max Mara has a presence in 105 countries with over 2,500 single-brand stores and 10,000 multi-brand stores; and
- Pizza Hut Spain, with 26,000 employees in Spain and part of a multinational that manages three of the largest restaurant chains in the world (Pizza Hut, KFC and Taco Bello).
Simantov said: “We continue to grow our enterprise customer base to 250 as of the end of the quarter, welcoming companies that include BASF Spain, Max Mara, Pizza Hut Spain, Globalia, Quersus, Libel, Eatout Group and Serveo.”