Way2VAT increases revenue by 64% as business starts to scale post-COVID

04.03.2024 - 07:58 / traveldailynews.com / Theodore Koumelis

Reported revenue of $3.1 million, up 64% on pcp (FY22: A$1.88 million).

Global fintech leader in automated VAT claim and return solutions, Way2VAT Ltd, announced its full-year financial results for the 12 months ended 31 December 2023 (FY23).

Commenting on the company’s achievements in FY23, Way2VAT Founder & CEO, Amos Simantov, said: “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 DevoluIVA.

“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.”

“Operating conditions returned to normal, with business travel continuing to increase and the time taken for tax authorities to administer claims steadily averaging seven months, rather than the fifteen-month periods we were experiencing during Covid. We continue to expand our client base across Europe, which provides a solid base to widen our presence in the global market.

“We have also continued to invest in increasing our product offering and have just launched the latest AI-driven automated product, AI-AP Compliance. Building on our existing technology platform, AI-AP Compliance performs a full audit of all accounts payable invoices for clients, reducing risk and error of manual processing and ensuring the correct VAT/GST is charged across jurisdictions.”

FY23 gross transaction value increased to $23.7 million, up 11 % (FY22: $21.2 million), attributable to the increasing client base and their increasing value claims, driven mainly by the return of the international travel of our customers during the year.

Reported revenue increased significantly by 64% to $3.1 million on pcp (FY22: $1.88 million).

As previously disclosed, the company reduced operating expenses in Q4 FY23 on a cash basis by 7% compared to the previous quarter. In addition, the company also achieved a significant YoY reduction of total pro forma USD operating costs of 16% in FY23, as it integrated the acquired DevoluIVA business into