Q: Could you elaborate on the pipeline for the Connect product in the second half? A: We have nearly 100 firms signed up for Connect, with 50% already implemented and the rest in the process. Additionally, we have 200 firms in our customer base that use compatible practice management solutions, representing a significant opportunity for expansion. We've also expanded our sales team to accelerate onboarding.
Q: Are you seeing any changes in the sales cycle, and how does it affect your business? A: The sales cycle varies significantly, influenced by the urgency of client needs rather than firm size. While the election period caused delays, we are now observing quicker decision-making. Some large firms have short sales cycles due to immediate needs, while others may take longer due to multiple decision-makers.
Q: Have there been any changes in the default rate or delinquencies of your financing products? A: Our bad debt write-offs remain very low, with $16,000 in the half. Our model involves daily client installments, allowing us to promptly address any payment issues. Professional services firms, particularly in accounting and law, are generally more financially stable, contributing to our low default rates.
Q: What strategic initiatives are you focusing on for the second half of FY25? A: We aim to grow profitability through QuickFee Finance and Connect, manage costs, and invest in automation. In the US, we focus on leveraging our technology foundation and deepening strategic partnerships to expand market reach. We are confident in achieving our FY25 EBITA guidance of $1.5 to $2.5 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.