Leading Australian investment app Raiz sees growth and increases across the board
Leading Australian investment app Raiz have announced its business update for the quarter ending 31 December 2024 (Q2 FY25).
Revenue in Q2 FY25 was $5.95 million, up 13.5% YOY (+5.1% QOQ), driven by an 8.5% increase in Active Customers YOY and an increase in Annualised Revenue Per User (ARPU) of 6.4% YOY to $75.68 (+3.2% QOQ).
Raiz has continued to accelerate customer growth with 7,395 new Active Customers in Q2, compared to 3,824 in Q1, and average quarterly additions of 2,708 in FY24. This positive trend reflects a significant improvement in our marketing systems and processes which has seem the implementation of a customised approach to target customers with the right message at the right time. This positive trend is continuing with Active Customers growing to 322,219 at 25 January 2025.
The ARPU has steadily increased over the past year, driven by a strong uptake of higher revenue Raiz Plus and Raiz Super products, higher account balances and increased engagement with the customer base through product innovation and cross promotion.
Raiz Plus customers increased by 48.9%, and Super customers are up by 25.8% in the past year.
Kids portfolios increased by 41.8% representing a growing pipeline of the next generation of customers and the opportunity for Raiz to build long-term, positive customer relationships.
Brendan Malone, Raiz Invest Managing Director and CEO said, “I am proud of these results which demonstrate our growth strategy is on target as evidenced by accelerating customer growth, strong net inflows across all products driving steadily increasing ARPU.
“Key initiatives driving these positive results are our enhanced marketing systems and processes, a changing product mix focused on higher revenue products, and increased customer retention and engagement, which is a key strength and point of difference that Raiz continues to deliver.
“The team have been working hard and the strong performance in growth drivers reflects this. We continue to innovate and deliver for our customers, receiving recognition from SuperRatings and the Finder Awards for Investment Product Innovation was outstanding.
“With the momentum we are experiencing in customer growth and engagement driving revenue growth along with our scalable technology and operations we are well positioned to generate further growth,” Malone ended.
