Leafbuyer Technology Inc. (OTCMKTS:LBUY) has announced that it has achieved positive operating cash flow by growing its monthly revenue and reducing expenditures.
Leafbuyer attains positive cash flow
Kurt Rossner, Leafbuyer’s CEO, said that they have been positioning the company and building momentum over the past year to attain positive operations cash flow. Rossner said that they are proud to have attained the milestone in November 2020. He said that going forward they expect to witness continued growth as they increase revenue, manage costs and consider acquisition opportunities.
For the quarter ended September 30, 2020, the company announced that its revenue grew 33% YoY with operating expenses also dropping 51%. The company recently described its strategy of targeting new markets in the US that legalized recreational and medical cannabis through ballot initiatives during the 2020 election. Leafbuyer’s collected billings were up 32% from June 2020 through August 2020.
Rossner said that the initiatives the company instituted in 2019 and adjustments during the pandemic are paying off. He said that the creation of the highest-quality tech and provisions of exemplary services to customers have been vital to Leafbuyer’s recurring revenue approach and profitability. Despite the company hitting a massive milestone of positive operations cash flow, Rossner feels that there is still a huge opportunity for the company to grow in the future.
Leafbuyer announces monetization strategy for “Smart Technology”
The company has also announced the monetization model for the recently launched “Smart Technology” product line. Leafbuyer said that the new products will boost its monthly recurring revenue throughout 2021. Commenting on the same, Rossner said that based on preliminary results from the Smart technology product line launch, they are confident of generating significant revenue growth in 2021. He said that customers are ready to pay more to access new products such as the Smart App since the value-enhanced customer engagement and greater ROI.
With Leafbuyer monetizing the new product line, it will bolster its fixed platform fee and charge customers for credits they can use when accessing premium features or texting their clients.