Reporting Season Round Up: Redbubble didn’t impress but these 2 wealth management stocks did
In the early days of the pandemic Redbubble notched up stellar growth as shoppers moved online.
But for many ecommerce outlets, while sales and growth are still above pre-COVID levels they’re no longer growing – or at least not as fast a pace as 12 months ago.
Redbubble’s Gross Transaction Value for the September quarter was $142 million, down 21% and its gross profit was $42 million, down 34%.
One of the biggest sales areas was face masks but that has substantially slowed – the company noted excluding masks its marketplace revenue was only down 6%.
Nonetheless, it still came in 55% higher than the September quarter in 2019 representing a 24% compound annual growth rate.
The breakout period for these wealth management stocks came prior to COVID as they disrupted traditional banks and wealth managers with their offerings.
And that was before the Hayne Royal Commission.
But they have continued to perform amidst COVID-19. Hub24 notched up a record first quarter net inflows of $3 billion taking its total funds under administration to $63.2 billion.
Netwealth on the other hand reached $52 billion in assets under management, a figure that grew by $4.8 billion in the past quarter.
Both companies said the ongoing structural changes and regularoty requirements in the industry supported their addressable market and growth opportunities.
Harmoney is one of the half dozen or so lending stocks that have hit the ASX since COVID-19 and have benefited from record low interest rates as well as their technological offerings compared to traditional lenders.
The company, which has operations in both Australia and New Zealand, made approximately $60 million in new loan originations, up 389% on the prior corresponding period.
It also achieved breakeven on a pro forma cash net profit after tax basis.
Harmoney reaffirmed its FY22 guidance, tipping a loan book of at least $600 million.
While it assumed lockdown restrictions had no material impact, no comment was made about New Zealand’s recent hike in interest rates – one of the first in the post-COVID world.
This online beauty business listed nearly a year ago and while it has mostly disappointed from a share price perspective, its shares saw a slight gain off the back of its quarterly results.
It’s revenue and active customers both grew by over 20% to $63.8 million and 874,000 respectively.
Adore Beauty CEO Tennealle O’Shannessy said the start to FY22 had been pleasing and that recent lockdowns accelerated the structural shift to online shopping even further.