Prospa’s H1 FY23 results demonstrate strong top-line growth despite changing economic conditions

Prospa’s H1 FY23 results demonstrate strong top-line growth despite changing economic conditions

ASX-listed fintech pioneer Prospa has announced its financial results for the half year ending 31 December 2022 (“H1 FY23”).
The company has demonstrated strong growth in cash and profit metrics; while strategically investing in new products and technology to support long term growth and increasing its loan loss provision as cash rate rises continue and economic growth is expected to slow.

H1 FY23 highlights include Total Originations of $425.5 million, up 35.1% on the prior corresponding period (“pcp”) (H1 FY22: $314.9 million) and closing gross loans increased to $855.8 million, up 66.3% on pcp (H1 FY22: $514.6 million). In New Zealand these figures rose to 18.2% of closing gross loans from 16.3% at FY22.
Prospa also recorded revenue of $135.3 million, a 72.4% increase on pcp (H1 FY22: $78.5 million).
Active customers also grew as did operating cashflow, increasing to $47.0 million, up a significant 98.0% from pcp (H1 FY22: $23.7 million).

Greg Moshal, Co-Founder and CEO, said, “I’m pleased by Prospa’s strong momentum, which is underpinned by our mission to be the financial partner of choice to small businesses in Australia and New Zealand. We have continued to invest in our products and technology so our customers have simple, stress-free, and seamless financial management tools, and they can focus on what they do best. Despite this increased investment, Prospa still posted an EBITDA profit for the half.

“The impacts of inflation, rising rates and a tight labour market have increased uncertainty in the operating environments for many small businesses. We are seeing stress in some of our lower risk grades and have revised our commercial credit risk assessment policies in-line with these changing conditions.

“Notwithstanding the macro environment and tightening credit, we continue to grow our business by meeting customer demand, building out our product roadmap and applying a strong focus on our portfolio management settings.”