Way2VAT (ASX: $W2V) FY23 Financial Results Overview

Way2VAT Ltd (ASX: $W2V) has reported a significant increase in revenue, with a 64% rise to $3.1 million for the 12 months ended 31 December 2023. The company also experienced an 11% increase in transaction volume, reaching $23.7 million, and a 38% growth in enterprise clients, now totaling 345. Notably, Way2VAT raised $4.04 million through a rights issue and oversubscribed share placement to drive growth initiatives and enhance profitability. Additionally, the company secured an R&D funding loan of $412k (€250k) to support the development of new product line technologies in T&E claim automation.

Founder & CEO, Amos Simantov, on Way2VAT's FY23 Achievements

This has been a considerable year for Way2VAT as our AI-powered technology platform has started to scale. Revenues have steadily increased, culminating in a record annual revenue of $3.1 million for FY23 - with the $1 million milestone reached in the last quarter. Our growth can be attributed to various factors including the return to pre-COVID operating conditions, significant new enterprise client wins, and of course the new markets we've entered and clients we've serviced through a full twelve months of integrated operations after our strategic acquisition of DevolulVA. As the year progressed, our operating expenses continue to decrease as we implemented strategies to reduce costs, including moving functional operations to Romania and refining our onboarding processes for new clients, meaning we also generated revenue from them sooner. Our focus on cost management has resulted in a 16% YoY reduction in like-for-like total operating expenses from 2022 to 2023.

Way2VAT's Outlook and Achievements

Way2VAT's FY23 financial results reflect a substantial increase in revenue, driven by the expansion of its client base and successful cost management strategies. The company's focus on reducing operating expenses and enhancing operational efficiency has resulted in a 16% YoY reduction in like-for-like total operating expenses. Furthermore, Way2VAT's launch of the new AI-driven automated auditing product, AI-AP Compliance, and the grant of a new patent by the US patent office demonstrate the company's commitment to innovation and technological advancement. Looking ahead, Way2VAT anticipates continued growth, with a strong pipeline of enterprise clients and the introduction of new products, such as W2V Compliance, to drive revenue. The company also aims to expedite its pathway to profitability through cash-flow management initiatives and remains open to potential acquisition opportunities that align with its ability to scale rapidly due to its AI-powered processes and platform.