Could this quarterly sink or swim the Cirralto (ASX: CRO) share price?

The Cirralto (ASX: CRO) share price is down 1.2% in opening trade after the company released it third-quarter update.

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The Cirralto Ltd (ASX: CRO) share price is slipping in opening trade after the company released its third-quarter update this morning. In what could be a tug of war between the bulls and bears, the Cirralto share price is down 1.18% at the time of writing, trading at 8.4 cents.

Third-quarter highlights 

In its update for the quarter ending 31 March (3Q21), Cirralto announced a 25% increase to $294,000 in total cash receipts from customers. The company is still in the testing phase of its payments technology, which might explain the relatively lacklustre growth.

It plans to launch the payments platform on 1 May 2021.

Cirralto used this quarter to put together the pieces it needs to drive growth in the near term. This included recruiting and integrating new talent into the team, optimising operational systems and building market momentum for its Spenda software product.

The company said it had translated into a 1,088% increase in total leads from 35 in the second quarter FY21 to 416 in 3Q21. As well, there was a 121% increase in website session views between the second and third quarter. 

Cirralto is focusing on expanding the capabilities of Spenda. The software includes real-time digital business payment services, debt collection software, a dynamic POS and inventory management system. The company is currently releasing additional features to expand its addressable market and competitiveness. 

Why it could go either way for the Cirralto share price 

Cirralto’s quarterly highlights relatively stagnant growth for the richly valued, transaction services business. This quarterly reporting season has been particularly punishing for companies that have not been able to live up to expectations. 

On the flip side, Cirralto has used this quarter to ready its springboard for accelerated growth towards the end of the year.

The launch of its upgraded technology platform, increased brand awareness, previous capital raising, zero debt and increased headcount could all contribute to more growth in the future. 

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Motley Fool contributor Kerry Sun 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.

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