Millennial investment app Raiz has delivered its first numbers since joining the ASX last month after a $15 million IPO.

Revenue increased 123 per cent compared with last year, but the fintech was still operating at a negative operating margin of $4 million after one-off payments for listing.

Raiz (ASZX:RZI) has had a tough first few weeks on the market — it sold shares at $1.80 and started this week at 93c — a 48 per cent decrease. Shares ticked up 2 per cent this morning to 95c.

Chief executive George Lucas told Stockhead he couldn’t comment on the share price but said Raiz was clearly a growth play.

I think the strongest part [of these numbers] is that we continue to grow as we outlined in the prospectus less than a month ago. It’s doing what we’d said it would do,” Mr Lucas said. 

“The long-term play is that we’re a growth company — it’s a growth play.”

Raiz Invest (ASX:RZI) share price, past 12 months.

On Tuesday, Raiz revealed growth numbers to investors, revealing its revenue for the June quarter of $729,000 was a 123 per cent increase on this time last year.

Raiz lets users invest small dollar and cents amounts into exchange-traded funds via its app. It has also recently launched a superannuation fund.

The company has a range of revenue streams as outlined in its prospectus, including advertising fees, maintenance and account fees.

At the end of June it had 160,000 customers and $199.8 million under management.

The numbers had since jumped to $214 million, with $4.5 million of funds flowing into the company’s super product.

The company received $1.1 million in cash from customers in the quarter and burned $4 million.

The $4 million negative operating margin included one-off costs associated with listing on the ASX.

Key costs in this quarter included a one-off corporate authorised representative fee of $554,000 to Instreet Investment Australia, the company of chief executive George Lucas which brought Raiz to Australia, when it was then branded Acorns Australia, in 2016.

Then there was $2 million in staff bonuses that was outlined in the IPO prospectus, $1 million of which was to go to Mr Lucas.

Other key outlays included $500,000 for advertising and marketing costs related to the rebrand from Acorns Australia to Raiz Invest, and $1 million worth of fees associated with the IPO.

Raiz plans to spend $2.7 million next quarter including $1 million on advertising. It had set aside $2 million from the IPO raise for use in advertising, as outlined in the prospectus.

Mr Lucas said the $1 million in ads woudl help ramp up customer acquisition in the first months of the new financial year.

“We’ve still got to solidify the new brand,” he said of the switch from the Acorns identity to Raiz.

At the end of June, Raiz had $11.4 million in the bank.