Wisr continued to kick goals in FY21, scoring triple digit revenue growth and a maiden positive operating cash flow.
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At the time of writing, the Wisr share price is up 8.93% to 30.5 cents.
Wisr share price lifts on triple digit growth revenue
Wisr achieved significant financial and operational milestones in FY21, with key highlights including:
Operating revenue up 280% to $27.2 million
Total new loan originations up 168% to $365.8 million
Total loan originations of $611 million as at 30 June 2021
Maiden positive operating cash flow in the month of June
Customer profiles on the Wisr Financial Wellness Platform lifting 80% to over 450,000
What happened to Wisr in FY21?
The Wisr share price has been a top performer in 2021, rallying 60.5% year-to-date.
The company continues to find success by redefining the consumer finance experience and providing its users access to a suite of financial wellness tools.
Wisr’s loan originations continue to go from strength to strength, lifting 52% in 2H21 from 1H21 to $221 million.
The company is exploring additional verticals to expand its loan book, launching a secured vehicle loan product in 1Q21. Wisr believes this opens up a potential $51 billion market opportunity in the consumer vehicle finance space.
To help drive growth, the company successfully tapped into the global debt capital markets, pricing a $225 million asset-backed security (ABS) transaction to help scale its loan book.
That’s in addition to a $55 million capital raising to accelerate the growth of its loan book and improve its technology stack.
While Wisr is still a loss-making business, the company is showing signs of improvement at the bottom line. In FY21, the company had a loss for the year of $17.6 million, a 25% improvement compared to the $23.5 million loss in FY20.
At the end of the period, Wisr remained well capitalised with cash of $92.4 million, driven predominately by the $55 million capital raise in June.
Wisr CEO Anthony Nantes commented on the results, saying:
The accelerated revenue growth of 280% to $27.2M is an exceptional result as the superior loan unit economics of the Wisr Warehouse funding model come into full effect. Now with our second major competitive product, secured vehicle loans, in market, there remains a huge opportunity for Wisr to grow market share by attracting Australia’s most creditworthy customers with a smarter, fairer deal, underpinned by an exceptional customer experience that actually improves a customer’s financial wellbeing.
What’s next for Wisr?
The Wisr share price is within an arm’s reach of its all-time high of 34 cents.
The business wants to put its “strong balance sheet to work” and accelerate the pace to achieve its medium-term target of a $1 billion loan book.
To drive loan book growth, the company aims to expand its total addressable market by exploring new markets and growth opportunities.
Its recent expansion into secured vehicle loans is already showing promise, representing 20% of the company’s loan book as at 30 June.
In late March, the company executed a term sheet to invest in European financial wellness fintech platform, Arbor. The company believes this potentially opens up an entry pathway to the circa $1.76 trillion European consumer finance market.
Should you invest $1,000 in Wisr right now?
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*Returns as of August 16th 2021
Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.