Forecasting analysts will have to head back to the number-crunching after MoneyMe’s record Q2 update (Pic by Columbia Pictures/Getty Images)
MoneyMe’s record growth to reset analyst forecasts
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MoneyMe has reported record growth originations in Q2, while FY22 revenue is now expected to storm past FY21.
After passing the $1 billion mark in Q1 loan originations, fintech lender MoneyMe (ASX:MME) has followed that up with a smashing Q2 release.
The company reported record originations of $170m for the first two months into Q2 FY22, a compelling 286% on the same time last year.
The record numbers are also up by more than half on the first two months of Q1.
MME’s automotive financing platform, Autopay, continues to shine and has now passed the $100 million milestone in originations in only seven months since launching in April 2021.
Around $68m of those auto loans originated in October and November alone resulting in $111m of gross customer receivables.
In total, the company has generated gross customer receivables of well over half a billion dollars ($542m), a 63% jump from 30 June 2021.
MME now expects 1H FY22 revenue to exceed $46m, almost double FY21’s first half.
FY22 revenue growth is on a steep trajectory, almost surpassing the whole of FY21’s revenue of $58m.
“This latest update will reset research analysts’ consensus on the growth projections of the company, given that we’ve surpassed forecasts on revenue, loan book, and Autopay,” MoneyMe CEO Clayton Howes told Stockhead.
“I’m delighted about this accelerated growth, with the group achieving record originations and record revenues, while maintaining strong credit performance,” he said.
“The November FY22 year to date results highlights Autopay is gaining significant traction, with dealerships and brokers signing up to the new platform and a faster than expected take-up from car purchasers.”
Passing $1 billion
By the end of the September quarter, MoneyMe passed the $1 billion originations, a significant milestone from its initial start-up in 2013.
Personal Loan and Freestyle continue to contribute the most to originations, continuing the strong performances throughout lockdown alongside the company’s ListReady and MoneyMe+ platforms.
The Autopay platform also achieved significant growth despite the car buying challenges posed by Covid-19.
In October, MME announced plans to expand Autopay into personal loans.
Autopay already approves automotive loans within a matter of minutes, and that model has now been rolled into personal loans.
Howes said the $1bn origination milestone reflects the company’s consistent focus to invest in and develop the digital capabilities of their Horizon technology platform.
And to strengthen its balance sheet further, MME has executed on a strategic funding deal with leading private equity firm Pacific Equity Partners (PEP).
The deal will see PEP make an initial commitment of $50m, through a hybrid funding instrument over a four-year term.
Overall, it’s been a phenomenal year for MoneyMe, with its stock price rising by a full third in just the past 12 months.
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.
