Butn finishes FY23 with record quarterly originations and revenue
ASX-listed fintech company Butn has provided its quarterly activities report for the three months ended 30 June 2023 (Q4 FY23), along with the company’s Appendix 4C cash flow report.
Commenting on Q4 FY23, Butn’s Co-Founder and Co-CEO, Rael Ross said, “Q4 has capped a remarkable financial year. This quarter was yet another all-time record for both originations and revenues. The quarter’s originations was 38% higher than the pcp, with revenue up 91% on pcp at $3.3 million. During the quarter Butn successfully completed debt and equity transactions, demonstrating continued investor appetite and support in light of the business’ demonstrated performance. The operating leverage is clear with record growth at an increasing margin, whilst maintaining tight cost control. This goes to our business model and strategic partnerships, which pleasingly was recognised with the MYOB | Butn partnership announced as Fintech Australia’s “2023 Excellence in Industry Collaboration & Partnerships” winner. On the back of FY23’s accomplishments, we look forward to FY24.”
Butn delivered Q4 originations of $117.4 million, up 38% on the pcp. Underlying this momentum, May’s monthly originations were $45 million, another record month. Origination growth provided for Q4 revenues of $3.3m, up 91% from the pcp, and yet another record. The sustained growth through FY23 reflects Butn’s strong relationship with its platform partners, growth of distribution channels and the increasing awareness of its product offering. Pleasingly Butn’s revenue margin continued to increase to 2.8% (up from 2.0% in the pcp) with the growing contribution of higher margin platform originations, changes in industry mix towards higher margin segments and pass through pricing adjustments.
Butn’s platform Q4 originations exceeded $30 million, up 85% on pcp and another record. The platform business continues to rapidly grow its share of originations and revenue, as it scales with strategic partners through a mass distribution strategy. Platform originations now account for over 25% of total Q4 originations and a higher proportion of revenue reflecting its higher revenue margin.
Q4 also delivered record user registrations and transactions, reinforcing the significant benefits and growing utilisation of Butn’s embedded funding technology across its strategic partnerships. This was recognised with the MYOB | Butn partnership announced in the quarter as winner of the “2023 Excellence in Industry Collaboration & Partnerships” Finnies award.
At 30 June 2023, cash on hand was $14.6 million (approximately $3 million restricted to purchasing eligible receivables) providing continued financial flexibility.
During the quarter, Butn secured a further $3.325 million of debt under a further tap of the 2019-1 bond. Based on Butn’s fast turning receivables book, the funding provides for approximately $20 million of additional annual origination capacity, with Butn’s annual origination capacity now nearing $500 million.
In addition, Butn issued $1.8 million of equity via an institutional placement and through the conversion of director related debt. The proceeds are to be used for working capital purposes and supporting continued growth of the business.
