Versapay’s recent customer growth is encouraging, says Haywood

Newly released numbers on customer growth are a leading indicator of VersaPay’s (VersaPay Stock Quote, Chart, News: TSXV:VPY) long-term potential, says Haywood analyst Pardeep Sangha.

This morning, VersaPay announced that 70 suppliers have signed on to use its cloud-based accounts receivable product, ARC. The company had just 43 suppliers in April of this year.

“We have continued to see strong growth in the number of companies and users on the platform, the volume of invoices being published to customers, and the number and size of payments being made on ARC in this most recent quarter,” said CEO Craig O’Neill. “Most of this growth is driven by suppliers that have been live for one or more quarters, so we expect to see these growth rates increase nicely as the number of new suppliers going live accelerates.”

Sangha says the figure is higher than the 50 suppliers he expected at this time and says investors should keep a close eye on these numbers.

“Strong key metric growth will continue to be the focus in the near term,” says Sangha. “We continue to view these metrics as leading indicators of the company’s future growth potential. We believe today’s metrics provide validation of the product’s value.”

In a research update to clients today, Sangha maintained his “Buy” rating and one-year price target of $1.60 on VersaPay, implying a return of 52.4 per cent at the time of publication.

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