VersaPay, the Toronto based financial technology company, has announced its results for the first quarter of 2019.
The highlight of the results was a year over year growth in revenue of 90%, growing to CA$1.95mn (US$1.45mn).
"The biggest driver of this was ARCTM which grew 175% year-over-year to $1.46 million," said Craig O'Neill, CEO of VersaPay. "Our recurring business (ARR) is approximately $6.56 million at the end of the quarter with ARCTM representing approximately 70% of this figure. This is significant because of the positive impact it has on our gross margins, which grew to 79% this quarter, up from 71% in Q1 2018."
There was strong growth in the company’s accounts receivable cloud software, ARC, with 10 new contracts being signed, a new module being released for the platform with cash application and bank reconciliation capabilities, and an increase in users from 162,560 compared to 106,746 at the end of the first quarter of 2018.
O'Neill said: "Our subscription backlog and professional services backlog ended the quarter at $1.10 million and $0.47 million, respectively, with new subscription sales of $0.90 million and professional services sales of $0.31 million in the quarter. We will see the majority of this backlog translate to revenue in the coming one to two quarters."