RE:RE:show me the moneyTigerMomInvest,
First - Cortex (CBX) and Versapay (VPY) are in completely different businesses. VPY is A/R Automation. CBX is in A/P. They solve VERY different issues.
I think Joel, the CEO of Cortex, is a great person and good CEO. That said it took 10 years to get to 8800 end-payers. It took VPY six months to get to that metric. The problem that VPY solves is much bigger, and more readily needed than that which CBX solves.
I am not here to bash CBX or offer any major opinion. But I will simply say that VPY is in a completely different business.
Second - VPY is absolutely breaking out the revenues from their ARC business (Solutions) and the P.O.S. business - here is the Q1
- VersaPay Solutions revenue for the three months ended March 31, 2016 increased by 85% to $0.29 million compared to $0.16 million for the three months ended March 31, 2015.
- Total revenue for Q1 2016 increased by 17% to $1.45 million compared to $1.24 million in Q1 2015.
- P.O.S. Merchant Services revenue for the three months ended March 31, 2016 was $1.16 million compared to $1.08 million for the three months ended March 31, 2015.
Here is the Q4/FY 2015:
- VersaPay Solutions' revenue for the year ended December 31, 2015 increased by 76% to $0.89 million compared to $0.50 million for the year ended December 31, 2014. Solutions revenue for Q4 grew by $0.15 million or 99% compared to Q4 of 2014.
- P.O.S. Merchant Services revenue for the year ended December 31, 2015 was $4.54 million compared to $4.66 million for the year ended December 31, 2014. Excluding the impact of the one-time voluntary reimbursement provided by the Company to Chase Paymentech ("Chase") for certain rebates provided by Chase to certain point-of-sale merchants (the "Chase Rebate"), P.O.S. Merchant Services revenues would have been $4.67 million for the year ended December 31, 2015 (0.2% increase).
- Total revenue for Q4 2015 increased by 18.2% to $1.40 million compared to $1.18 million in Q4 2014. Total revenue for the year ended December 31, 2015 increased by 5.1% to $5.43 million compared to $5.17 million for the year ended December 31, 2014. Excluding the impact of the one-time Chase Rebate, total revenues would have been $5.56 million for the year ended December 31, 2015 (7.6% increase).
Further - the ARC services are ALL proprietary. They are also a payments processor which is critically import to the overall solution that they provide.
I don't believe you have a solid grasp as to what VPY does or what they solve. The commercial adoption by suppliers and end clients is growing exponentially. Further the adoption by ERP vendors is absolutely first step into further acceleration of their adoption, sales and revenues.
VPY is absolutely showing the signs of increased adoption and being in a J curve of growth.
With the recent release of the newest metrics - these are precursors of future revenue growth.
Here are the latest metrics:
There are now 70 suppliers signed on to use ARC
TM, the Company's accounts receivable automation platform, up from 43 suppliers in April.
- 34 of these suppliers are mid to large enterprise customers using the full version of ARC™ including a VersaPay connector that integrates with their ERP system
- 36 are small businesses using ARC Lite, the standalone version of the service which allows manual invoice creation and automatic generation of recurring invoices within the system
- 55 suppliers are now live, an increase of more than 65% in the past 3 months
- End customers on the ARC platform has grown to 22,900, representing growth of more than 30% in the past 3 months
- Invoices received by ARC customers has grown to more than 510,000 from 396,000 in April, for a 3-month growth rate of nearly 29%
- Payments made on the platform have again doubled in 3 months, rising to $45.8 million
If you go back further you can see the previous metrics and the correlate those to the newer revenue metrics.
There is significant growth in the metrics - which correlates to new and growing revenues.
Best regards,
Colin Fisher, Portfolio Manager, StableView Asset Management