Growth momentum is driving improved profitability at Raiz
ASX-listed Raiz Invest, a leading investment app, have announced its financial results for the half-year ended 31 December 2024 (“1H FY25”).
Raiz witnessed strong revenue growth, up 14% on pcp to $11.6 million, with Active Customers up ~9% to 317,995.
Funds Under Management (FUM) continued to grow, up 32% to $1.61 billion, driven by strong netflows of $106 million (1H FY24: $30 million).
Raiz’s positive operating cashflows of $1.56 million, the third consecutive half supporting positive free cashflows.
Operating revenue from continuing operations was up 14% to $11.6 million (1H FY24: $10.2 million).
Raiz has made significant improvements to its marketing systems and processes, including the implementation of a customised personalised approach to customers with the right message at the right time, resulting in accelerated growth in Active Customers.
Raiz Plus portfolios increased by 49%, Kids portfolios increased by 42% and Super customers are up by 26% over the year. Customer growth has continued to accelerate with 325,380 Active Customers as at 25 February 2025. The 8% increase in ARPU over the year has been driven by an uptake of higher revenue products, Raiz Plus and Raiz Super, higher account balances and increased engagement with the customer base through product innovation and cross promotion.
Brendan Malone (pictured), Raiz Invest Managing Director and CEO explained, “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.
“We have highly scalable technology and operations, a strengthened Board and team with the business transitioning to profitable growth.”
