Microcap fintech BNPL player Ovanti (ASX:OVT), currently a penny stock (which saw no change in price Wednesday and very low volumes), has revived its nearly 12-month-long plans to list on the Nasdaq, informing the market it continues to speak with multiple Special Purpose Acquisition Company (SPAC) operators.Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.SPACs are an American phenomenon that can be some ...

Financial Data and Key Metrics Changes - In 2024, net income increased more than tenfold compared to 2023, with total revenue reaching $271 million, a 70% increase from 2024 [11][23] - Adjusted net income for Q4 was $26.5 million, and for the year it was $66.2 million, each up approximately ten times compared to the prior year's period [24] - The company achieved a revenue growth rate of over 100% year over year in Q4, meeting the rule of 40 and the rule of 100 on revenue growth alone [13][23] Business Line Data and Key Metrics Changes - The launch of the On Demand product contributed significantly to user engagement, with 707,000 Monthly On Demand and Subscriber Users (MODS) at the quarter end, representing a 130% year-on-year increase [14][19] - The product marketplace saw orders grow at an average rate of 39% month over month during 2024 [16] - The company maintained strong subscriber numbers while focusing on introducing new users to the On Demand product, which has better activation rates due to its lower barrier to entry [43][44] Market Data and Key Metrics Changes - The BNPL (Buy Now Pay Later) industry is projected to continue growing at double-digit annual rates for the next five to ten years [7] - The company has integrated directly with over 20,000 merchants, allowing consumers to shop at 598,000 different merchants during the year [21] Company Strategy and Development Direction - The company aims to enhance the shopper experience and launch new products that consumers want and need, with a near-term focus on maximizing the On Demand launch [12] - The strategy includes leveraging the On Demand product to create a bridge to subscription services, similar to how Uber introduces its subscription product [46] - The company is focused on improving its underwriting models to allow for increased approval rates while managing credit risk effectively [27][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to continue gaining market share despite competition from larger peers, emphasizing the importance of executing at a high level [5][6] - The company anticipates double-digit revenue growth for 2025, with pre-tax net income expected to rise at least 55% compared to 2024 [12][34] - Management highlighted the importance of responsible repayment and the unique value proposition of their SezzleUp product for building credit history [9][8] Other Important Information - The company has a cash balance of $98.3 million and $39 million of unused borrowing capacity available at year-end [33] - The company plans to provide adjusted numbers for 2025 to remove non-recurring items and has increased its EPS guidance for 2025 to $13.25 [34] Q&A Session Summary Question: What were the biggest drivers of the year-over-year revenue growth acceleration from Q3 to Q4? - Management identified the partnership with WebBank and the launch of the On Demand product as the primary drivers of revenue growth, leading to increased gross margin and bottom line [36][37] Question: How did seasonality impact the revenue growth? - Management noted that the holiday season contributed to the year-over-year growth, but emphasized that the On Demand product allowed for more consistent shopping activity throughout the quarter [40][41] Question: How did the Anywhere and Premium products perform in Q4? - Management indicated that subscriber numbers were maintained, but the focus was on introducing new users to the On Demand product due to its better activation rates [43][44] Question: What is the monetization potential of the couponing feature? - Management confirmed that there are monetization channels for couponing, but they are currently focused on using it for customer attraction and retention [61][66] Question: What are the plans for capital allocation with increased cash generation? - Management stated that being a profitable company creates options for buybacks, dividends, and M&A, and they will evaluate these options as they continue to generate cash [62][63]