Raiz Invest Limited (ASX:RZI) Reports 14% Revenue Growth and Exits Southeast Asia
Financial Performance
Raiz Invest reported a 14% increase in revenue to $11.6 million for the half-year ended 31 December 2024. Active customers grew by approximately 9% to 317,995, and average revenue per user (ARPU) rose by 8% to $74.29. Funds Under Management (FUM) surged by 32% to $1.61 billion, driven by strong net inflows of $106 million. Underlying EBITDA significantly improved to $706k, and operating cashflows remained positive at $1.56 million.
Capital Management
The company strengthened its balance sheet through a $3 million share placement with institutional investors and a $938 thousand Share Purchase Plan (SPP), with cash on hand of $12 million. Operating expenses increased by 8% to $10.9 million, reflecting investments in new marketing systems and technology.
Strategic Partnership
Raiz Invest formed a strategic partnership with State Street Global Advisors (SSGA) to collaborate on new product development and broaden market awareness. This partnership focuses on developing ETFs, retirement portfolios, and enhancing financial literacy tools for Raiz customers.
Product Innovation
The company demonstrated a strong commitment to product innovation by expanding Raiz Plus with 150 individual share and ETF options, launching Raiz Plus into Super, automated Raiz Rewards now live with 57 merchants, and introducing Raiz Jars with over 12,700 active portfolios. Additionally, Raiz is developing white-label offerings for strategic partners and financial institutions.
Strategic Outlook
Raiz Invest aims to enhance customer lifetime value, accelerate revenue growth through organic expansion and strategic partnerships, leverage artificial intelligence and data analytics for improved customer insights, and maintain efficient capital management. The company has completed its exit from Southeast Asia and is now exclusively focused on its core Australian operations.
Executive Comments
Brendan Malone, Raiz Invest Managing Director and CEO, stated, “We are pleased to deliver a strong first half result, with positive momentum in our core business metrics, including Active Customers, ARPU, FUM, Underlying EBITDA, and operating cashflow. These results are pleasing as they reflect the successful execution of our growth strategy to build deeper and longer relationships with our customers, through product innovation, cross-selling and exceptional customer service. We have a clear track record of ongoing product innovation and we are building a strong ecosystem of strategic partners, which will further enhance our distribution capabilities and market growth potential.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 Scott Phillips.
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