Butn announce record originations and revenue, positive EBITDA and operating cash flow
Butn have announced its results for the six months ended 31 December 2022 record originations and revenue, positive EBITDA and operating cash flow.
Butn’s Co-Founder and Co-CEO, Rael Ross (pictured) said, “We have had an incredibly strong 1H23, delivering record after record across all our key financial metrics, demonstrating the need for our fast, secure and reliable funding at the click of a Butn. Record originations and record revenue delivered in combination with a stable operating base, drove positive EBITDA and operating cash flow for the six months to 31 December 2022.”
Record originations
The Group reported 1H23 origination growth of 68% to $214 million (1H22: $128 million). This included consecutive record quarters in Q1FY23 and Q2FY23, with December a monthly origination record of $39 million, the fifth record month in the past six months and up 57% on the pcp.
The six months originations to 31 December 2022 represent 103% of the 12 months FY21
originations and 78% of the 12 months FY22 originations, demonstrating the sustained momentum and origination growth in the business.
Record revenue
Record originations have driven record revenue with 1H23 revenue of $5.5 million, up 115% on the pcp’s $2.5 million revenue and exceeding the 12 months FY22 revenue.
Revenue margins increased from 2.0% in the pcp to 2.6%, through improved industry mix, an increasing contribution from the platform channel at higher margins and pass through of some pricing adjustments. Importantly whilst conditions have been challenging for SMEs, bad debts written off for 1H23 have remained low and under 0.1% of total originations.
Improved financial results
In 1H23 Butn delivered substantially increased revenue with a stable operating base. This has led to positive EBITDA of $0.6 million (1H22: EBITDA loss of $2.9 million), and a significantly reduced loss before tax of ($2.9) million, compared with ($5.2) million loss in the pcp.
The strong operating leverage also generated a 1H23 operating cash flow of $0.5 million, compared with ($2.8) million cash out flow in the pcp.
Record platform growth
1H23 had record origination and revenue from Butn’s platform channel, demonstrating the rapid growth and future potential of this distribution channel. This culminated in December 2022’s platform originations exceeding $10 million, equating to over 25% of that month’s total originations.
The strategic MYOB partnership is growing strongly, with Butn continuing to roll out its embedded funding solution to a broader MYOB business user base during the period.
Strong financial position
Receivables increased to $74.8 million (FY22: $55.2 million) with origination growth driving the fast-turning receivables book which on average turns six times per annum. To support this growth, Butn completed approximately $16 million of additional debt raisings in the period, with cash on hand at 31 December 2022 of $11 million.
Commenting on the company’s outlook, Ross added, “Traditionally our third quarter is our quietest, aligned to business seasonality post-Christmas and January holidays. January 2023 however saw continued strong growth on a pcp basis, providing confidence for the 2H23 and beyond.
“FY22 demonstrated sustained growth off our key building blocks of product, people and strategic partnerships. The first half of FY23 has taken that foundation, accelerated and leveraged it, driving record results and significantly improved financial performance. We believe, together with our strategic partners, we are well placed to assist SMEs in these uncertain and challenging economic conditions, providing Butn with continued growth and exciting opportunities in the future.”
