Wisr delivers maiden profitable quarter
Releasing Q2FY23 results today, consumer lender Wisr’s strong cost control and other strategic decisions made by the team have delivered a material Cash EBDTA profit and strong positive operating cash flow quarter.
Wisr’s Q2FY23 key highlights include:
- Maiden Positive Cash EBTDA of $0.5M and positive operating cash flow of $1.5M for the quarter
- Quarterly Revenue up to $22.0M, a 56% increase on pcp Q2FY22 ($14.1M)
- Strengthened the balance sheet by securing an additional $25M debt facility
- Material progress made towards securing a new warehouse facility with another Big Four bank, with credit approval received
- Prime loan book (warehouse, securitised and balance sheet) now at $916M, an increase of 62% on pcp (Q2FY22 $565M), with 90+ Day arrears of 1.07% and average credit score of 772
- Q2FY23 loan originations of $116M in the seasonally weaker December quarter, $1.5B in total loan originations as at 31 December 2022
- Well capitalised with a cash balance of $58.0M, including unrestricted cash and cash equivalents of $27.0M as at 31 December 2022
- Wisr Financial Wellness Platform passed 704K profiles, well on track to reach our 1M profile goal
Anthony Nantes, Chief Executive Officer of Wisr, said, “This quarter is a significant milestone in the company’s progression as we deliver our first profitable quarter. We’ve delivered both positive Cash EBTDA and strong operating cash flow through a range of management decisions focussing on near-term, sustainable profitability. We have demonstrated a material reduction in operating expenditure while still growing our loan book 62% on pcp and revenue 56% on pcp. We’ve prudently moderated our growth to navigate these uncertain economic conditions and protected our margins by lifting yield.”
“Towards the quarter’s end, we strengthened the balance sheet with an additional $25 million debt facility. We’ve also secured credit approval from another Big Four bank for a warehouse facility, demonstrating the continued strong performance of our prime loan book and third-party validation of the forward-looking view on both the loan book performance and our operational controls.”
“Through our proprietary Financial Wellness Platform, we’re more than just a lender and know that financial health is a top stressor for many Australians. Financial health tools have become even more important for everyday consumers who are experiencing heightened inflation and cost of living pressures. In this last quarter, we launched a new product into our Financial Wellness Platform and ecosystem with the world-first psychology-led money coaching app, “Wisr Today”, which applies research-proven, science-based interventions to help everyday Australians change their money habits. While only a soft launch, demand has been strong with over 19K downloads since launch at the start of Q2, and we’re excited about the optionality this incredibly innovative and groundbreaking app provides for us as it scales.”
“Now that we have delivered our profitable maiden quarter, our focus is on sustainable long-term profitability. In this quarter, we have demonstrated that not only can we deliver a profitable business but also innovate with global-level quality at rapid speed with a new product, “Wisr Today” (now available in the app store) has enormous potential. We have the resources and capability to safeguard the business and a strategy and platform that is setting us up to be a company of significant size and scale, with a genuine competitive advantage in the years to come,” ended Nantes.
