The Credit Clear Ltd (ASX: CCR) share price is on course to start the week with a solid gain.
In morning trade, the debt recovery solution provider’s shares are up 5% to 76 cents.
At one stage today, the Credit Clear share price was up as much as 10% to 79.5 cents.
Why is the Credit Clear share price storming higher?
Investors have been buying Credit Clear shares this morning after it announced a major new customer win and strong third quarter growth.
According to the release, the company has signed Suncorp Group Ltd (ASX: SUN) as its first major insurance sector client.
The company notes that the signing of Suncorp, for a fully integrated digital service, capped off a very strong third quarter of FY 2021 for Credit Clear.
During the quarter, the company’s unaudited revenue grew by more than 30% over the second quarter to over $2.7 million.
This was driven by a 245% year on year increase in digital communications to 2.8 million, with the company experiencing its first 1 million month during March. Management believes this indicates that customer acceptance of Credit Clear’s digital platform is continuing to accelerate.
Credit Clear provides businesses with a digital debt recovery technology platform that helps drive smarter, faster, and more innovative financial outcomes. It aims to achieve this by changing the way customers manage their payments through a user experience that the market demands in a digital age.
Credit Clear’s Chairman, Gerd Schenkel, said: “Credit Clear’s successful entry into the Australian insurance sector and the achievement of continued strong growth in the March quarter highlights the potential for the Company to play a major role in the multi-billion-dollar Australian receivables market.”
“Signing long-term fixed fee contracts with enterprise clients creates revenue certainty and shareholder value and demonstrates the flexibility of Credit Clear’s fully integrated, SaaS digital business model. We are committed to delivering a world leading interactive communications and digital payments platform for our clients across all major sectors.”
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.