Wisr delivers 118% revenue growth and targets profitability in 12 months
ASX-listed non-bank lender Wisr has delivered strong FY22 results and a clear plan to achieve profitability through a significant reduction in short-term growth aspirations in lending (in response to the current environment), switching from high to moderate growth, which will positively impact Cash EBTDA. The target is to deliver profitability within 12 months while maintaining a robust cash-balance sheet.
Strong Growth Recorded on Key Metrics
- Operating revenue up 118% to $59 million (FY21: $27 million)
- Total new loan originations up 67% to $611 million (FY21: $366 million)
- Total loan originations $1.2 billion as at 30 June 2022
- An unbroken record of 24 quarters of prime-credit loan origination growth
- Loan book growth of 103% to $780 million (FY21: $384 million)
- Delivered two positive operating cash flow quarters in Q2FY22 and Q3FY22
- 30% Cash EBTDA improvement (FY22: $(7) million vs FY21: $(10) million)
- Over 647,000 customer profiles (FY21: 450,000) in the Wisr Financial Wellness Platform as at 30 June 2022, a 43% increase
Anthony Nantes, Chief Executive Officer of Wisr, said, “We are a growth company and will be a growth company for the next decade or more as we seek to materially increase our share of the c. $150 billion consumer finance market in Australia. However, in the short term, we have prioritised achieving profitability within 12 months over accelerating growth, as we will continue to demonstrate the strong and safe fiscal management we are known for.”
“After achieving two positive operating cash-flow quarters in FY22 before the change in macroeconomic conditions, we have been well on the way to profitability. We’ve made material reductions in operating costs and lifted our yield by around 340bps to protect our NIM as we enter FY23 to deliver profitability in the short-term and moderate growth.
“In FY22, we delivered a record $611 million in new loans at an annual growth rate of 67%, extended our consistent loan growth to 24 consecutive quarters, surpassed $1.2 billion in total loan originations, grew operating revenue by 118% to $59 million, grown our prime loan book by 103%, and priced our second ABS deal. It’s an incredible validation of our business model, prudent treasury and underwriting capability and the capability of the widely recognised high-performing Wisr Team.”
“By taking prudent steps such as maintaining a strong cash-balance sheet, implementing rate and pricing levers, tightening credit in-line with risk appetite and significant material reductions in operating costs, the company is in the strongest position to navigate market conditions whilst delivering a moderate growth trajectory. We’re using the multiple levers available to us to absorb funding cost increases while still earning a healthy net interest margin – just as a bank can, we’ve been passing on the rising interest rates on new loans to customers throughout Q4FY22 and into FY23.”
“We’re well capitalised, building sustainable revenue and well placed to protect the business from any sustained economic downturn with a prime to super-prime customer base,” finished Nantes.
