Despite first quarter results he describes as “soft” Haywood analyst Massimo Voci is still bullish on VersaPay (VersaPay Stock Quote, Chart, News: TSXV:VPY).
Yesterday, VersaPay reported its Q1, 2015 results. The company lost $1.2-million on revenue of $1.24-million, a two per cent bump over last year’s first quarter topline.
“While we saw some softness in our [point-of-sale] merchant services results due to seasonal factors, we made solid progress piloting ARC with our first customers,” said CEO Craig O’Neill. “With over 1,200 counterparties on the platform and transaction volumes of over half a million dollars in the quarter, we were able to gather very compelling evidence that ARC delivers a major improvement in accounts receivable for businesses of many shapes and sizes. As a result we are more confident than ever that ARC will drive significant growth for the company, and we expect to become an industry leader in the business-to-business integrated payments space.”
Voci says VersaPay continues to build a pipeline for ARC, and that this should result in a shortened sales cycle. He says he continues to believe that the company is positioned well to capitalize on what he thinks is a large opportunity as a provider of electronic invoice presentment and payments.
“We continue to believe 2015 is a pivotal year for VersaPay, as ARC’s first users are going live and on-boarding within their industries, helping VersaPay build its integration expertise with key accounting systems and allowing it to win new customers throughout each of its target vertical markets,” said Voci. “The pipeline for ARC continues to grow, and VersaPay remains in good position for significant topline growth of its Solutions division in 2015 and 2016.”
In a research update to clients today, Voci maintained his “Buy” recommendation and one year target price of $1.70, implying a return of 23% at the time of publication.
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