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Complii FinTech Solutions (ASX:CF1) bolsters revenue, grows customer base over March quarter
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  • Financial services compliance business Complii FinTech Solutions (CF1) has spiked on the ASX today on the back of an encouraging quarterly financial report
  • The company's tech is designed to help holders of Australian Financial Services Licences (AFSL) comply with necessary regulatory obligations
  • Over the March quarter of 2020, Complii signed and brought onboard seven ASFL holders as new clients, taking its total number of AFSL customers to 95
  • This translated to $711,000 in quarterly revenue receipts and $133,000 in annual recurring revenue (ARR)
  • Complii spent around $1.6 million over the quarter, with the bulk of this coming from staff and administration and corporate costs
  • Still, with over $4.5 million worth of cash in the bank at the end of March, the company has enough money to fund over a full year of operations at current spending levels
  • Shares in Complii FinTech Solutions are up over 7 per cent this afternoon to trade at 4.4 cents each

Financial services compliance business Complii FinTech Solutions (CF1) has spiked on the ASX today on the back of an encouraging quarterly financial report.

The company offers a range of financial services through its namesake software-as-a-service tech platform, though the core focus of the business is the financial advice sector.

CF1's tech is designed to automate the Australian Financial Services Licence (AFSL) compliance process to ensure businesses meet their obligations under their finance licences.

Over the March quarter of 2021, Complii signed and onboarded seven ASFL holders as new clients, taking its total number of AFSL firm customers to 95. At the same time, the company delivered a business module to an existing customer.

The result was a 75 per cent increase in revenue receipts, which came in at $711,000 at the end of the quarter. Importantly, Complii said costs remained stable over this time.

From an operating perspective, Complii spent around $1.6 million over the quarter, with the bulk of this coming from staff and administration and corporate costs.

As such, when taking into account the $711,000 in customer receipts, Complii posted a cashflow-negative result of just under $900,000 for the quarter.

Nevertheless, as of March 31, Complii has now generated a $133,00 increase to annual recurring revenue (ARR) from new clients.

What's next?

Complii management said it is gearing up to market its newly released Governance Risk and Financial Crimes services, which will be launched to its first customer during the final quarter of the 2021 financial year.

On top of this, the Australian Investment Exchange (AUSIEX), which is one of the nation's leading providers of trading, settlement and portfolio administration services, has chosen Complii as its risk and compliance management platform supplier.

This deal was locked in over the March quarter but is on track to go live starting in May — meaning the March quarter's strong revenue figures are not including any licence revenue from AUSIEX.

Looking ahead, Complii had just over $4.5 million in cash on hand with no debt at the end of March, meaning the company has enough money to fund well over one full year of operations at current spending levels.

Shares in Complii FinTech Solutions are up 7.32 per cent at 2:15 pm AEST to 4.4 cents each. The company has a $9.14 million market cap.

CF1 by the numbers
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