Raiz Invest Announces FY25 Q1 Quarterly Business Updates – Revenue up 15.2% YOY to $5.66m
Raiz Invest Limited (ASX:RZI) (“Raiz”), a leading investment app, is pleased to present its business update for the quarter ending 30 September 2024 (“Q1 FY25”).1
Key Highlights
Revenue growth of 15.2% YOY: Driven by increase in customer numbers, FUM and ARPU.
Accelerating growth in Active Customers2: 3,824 new Active Customers in Q1, compared to average quarterly additions of 2,708 in FY24 and 1,611 in FY23. Total Active Customers of 310,600 at 30 September 2024, increasing to 314,127 at 25 October 2024.
Strong growth in Funds Under Management (FUM): Total FUM of $1.512bn up 31.8% YOY (QOQ: +8.3%), with strong fund inflows across all products.
Strengthened balance sheet: Successful completion of $3m share placement to institutional investors and $938,000 Share Purchase Plan (SPP). To be used for the development of AI to support marketing, product innovation, strategic opportunities and potential M&A.
Strong cash position: Positive operating cash flow of $856k and $12.3m cash balance.
Ongoing product innovation: Launched the Plus product into Super in July 2024 and currently developing white label solutions for financial institutions, including financial planners.
Strategic partnership with State Street Global Advisors (SSGA): Broaden market awareness & collaborate on new product development and financial literacy and education content.
Quarterly business update overview: To watch an accompanying overview of the quarterly business update, and ask any questions, please visit the Raiz Investor Hub
Revenue in Q1 FY25 was $5.66m, up 15.2% YOY (+2.6% QOQ), driven by a 4.9% increase in Active Customers YOY, as well as a higher ARPU. The increase in ARPU reflects higher average account balances and a changing product mix to higher revenue products. Annualised ARPU in Q1 FY25 was $73.30 up from $72.20 in Q4 FY24.
Funds Under Management increased across all products in Q1 FY25, with Total FUM increasing 8.3% QOQ and 31.8% YOY.
Brendan Malone, Raiz Invest Managing Director and CEO said:
“I am very pleased to deliver another strong quarter for Raiz with solid top line growth, positive operating cash flow and a strengthened balance sheet. From an operational perspective, this has been another very productive quarter, with the expansion of our Plus offering into Super, the launch of automated Raiz Rewards, the establishment of various new partnerships as well as the successful completion of a placement and SPP. Our marketing strategy is beginning to show positive momentum, accelerating growth in new customer acquisition, strong growth in users for Raiz Plus, Raiz Super and Raiz Kids and FUM of over $1.5b. Our operations are scalable with a low marginal cost of trading. Raiz is well funded to execute on our growth strategy, we remain focused to accelerate a strong upward trajectory.”
About Raiz Invest Limited
Raiz Invest Limited (ASX: RZI) is a multi-award-winning micro-investing and fintech platform to help all Australians create wealth. Raiz pioneered the ‘Round-Up’ concept in Australia – where everyday purchases are rounded-up to the next dollar and the difference is invested into a Raiz Invest account – opening opportunities for first-time investors.
Since launching in 2016, Raiz has led the market by offering innovative products and features alongside an advanced user experience and exceptional customer service. With 9 diverse portfolios to choose from, users of the Raiz platform can invest in up to 99 of the most recognised stocks on the ASX, ETFs, Bitcoin, and the Raiz Residential Property Fund, from as little as $5. Products range from Raiz Kids to Raiz Invest Super with a product to suit every life stage.
Raiz has also launched sophisticated products, like the customisable Plus portfolio to accommodate investors at all levels of experience and risk appetite. Raiz remains the number one investment app.
To find out more, please visit www.raizinvest.com.au or the Investor Hub https://investorhub.raizinvest.com.au/
