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MONEYME delivers record revenue in Q3, Autopay is accelerating their asset finance and is on track to dominate following SocietyOne acquisition
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MONEYME has once again delivered the goods to investors after more than doubling its revenue in the third quarter.
MONEYME (ASX:MME) hit record revenues in the third-quarter, as it turns into a major player in the fast-growing Australian fintech lending industry.
MONEYME’s revenue grew 141% on pcp to a record $35m in Q3 of FY22.
The company’s contracted revenue stands at a record $345m, up 94% on the prior quarter. Gross customer receivables were $1.2b, up a massive 398% on pcp.
The fast growing fintech company also continues to outperform in its loan book, where originations have grown by 215% on pcp to $340m.
“With 46% of originations being secured against car assets, the credit quality of the book is also increasing,” said MONEYME’s CEO, Clayton Howes.
“The products, technology and customer experience have continued to lead the organic growth advantage for the business,” he added.
Autopay shines
The company’s bespoke automotive financing platform, Autopay, continued to shine and gain market share.
During the quarter, the Autopay platform added significant scale with more dealers and brokers signing on. The business now has over 380 dealers and 950 brokers with access to the platform.
Gross customer receivables also continued to grow despite lockdowns, reflecting the diversified product strategy being successfully implemented at MONEYME.
The $1.2b in gross receivables include $356m related to the strategic acquisition of credit lender, SocietyOne.
SocietyOne acquisition changes the game
MONEYME’s $132m acquisition of SocietyOne in March has created a combined group capable of challenging the hotly contested non-bank lending space in the country.
The acquisition increased the combined group’s Q3 gross receivables by $356m on a statutory basis, and by $452m on a proforma basis (including loans under SocietyOne’s managed peer to peer program).
Both businesses bring complementary distribution capabilities that will span across digital, traditional, broker, agent and dealer, as well as delivering improved data.
This includes pursuing cross-selling opportunities such as the introduction of SocietyOne’s customer base to MONEYME’s Horizon platform.
Revenue opportunities from the synergy are estimated to be around $15m p.a. (pre-tax) from FY24 onward, and $17m of cost synergies through the medium-term.
It will also unlock new distribution opportunities for MONEYME by expanding its broker sales channel and the Banking-as-a-Service partnership opportunity with Westpac.
“There are many new innovations we will expand on, including the SocietyOne credit score product which will be brought to the MONEYME customer base, and the Banking-as-a-Service partnership with Westpac that we will continue to explore,” Howes said previously.
The post-acquisition integration (called Project Fusion) is progressing well, with several important milestones achieved in Q3 such as the appointments of a new exec team and a reduction in premises costs.
Focus in Q4 will be on cross-selling by leveraging the credit score of SocietyOne’s customer base of around 158,000. The company will also initiate the implementation of the technology integration onto the Horizon platform.
Well positioned
MONEYME’s credit and book quality metrics also continued to improve in the quarter.
Secured originations in Q3 now represent $158m (46% of all originations), while unsecured originations were $182m (54% of 3Q22 group originations).
The credit book has performed within planned ranges, with net losses at just 3% during the quarter – down from 4% in the previous quarter.
Meanwhile, MONEYME’s closing average Equifax score was 695 for Q3, increasing from 645 in the pcp, and 672 in Q2.
The combined group increased its external funding capacity to $1.4b in the quarter, which now includes funding from two major Australian banks and two major international banks.
Further capacity increases from these wholesale lenders are planned to support the massive business growth.
This article was developed in collaboration with MONEYME, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
