The Motley Fool

Class share price higher on quarterly update release

In morning trade the Class Ltd (ASX: CL1) share price has pushed higher following the release of its latest quarterly update.

At the time of writing the SMSF platform provider’s shares are up 1.5% to $1.47.

What happened in the June quarter?

During the June quarter the company’s growth continued to be challenged. Class reported a 2,461 increase in accounts to 179,082 and an increase in customers by 39 to a total of 1,545.

As you can see below, the Class Super offering grew by 1,787 accounts (net of ~300 AMP suspensions) to 171,447 and Class Portfolio increased to 7,635 accounts. Approximately 33% of Class Super customers now use the Class Portfolio product.

Class share price

The company’s new CEO and managing director, Andrew Russell, acknowledged that its growth was underwhelming, but appears optimistic on the future.

He said: “Undoubtedly, the June quarter growth levels have remained under pressure. Now, with a clearer picture on franking credits policy and a renewed focus on product, marketing and sales, we have a platform on which to build momentum for growth.”

Mr Russell also sees a lot of benefit in its recent agreement with Findex.

Adding: “Earlier this week we announced that we have signed wealth accounting group Findex to provide a trust accounting solution for their family office clients. As part of this agreement, Class will develop a range of features that will fully automate and simplify complex trust accounting requirements and deliver unprecedented efficiencies for Findex. These new trust accounting features will deliver these same benefits to other Australian accounting firms managing these complex investment entities.”

Elsewhere in the industry, the HUB24 Ltd (ASX: HUB) share price and the Netwealth Group Ltd (ASX: NWL) share price have continued to sink lower after falling heavily on Wednesday due to concerns over the cash returns provided through their platforms following the cash rate cut. 

Instead of Class, I would be a buyer on these payments companies which are growing at a stellar rate.

These ASX shares have shot up 204% and even 954%, but we think they’re just getting started

The $700 billion “war on cash” is on… and even The New York Times is calling it “a goldmine of staggering proportions”…

That’s why The Motley Fool has just released a brand-new research report: “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.” Inside, you’ll find 2 expert-picked ASX shares poised to profit from this sweeping tech revolution.

Heck, stock #1 is already up 204% in just the last two years. While Stock #2 has climbed an eye-watering 954% since 2015 alone…

Yet we’re convinced the sheer biggest returns could be still ahead, with 10X or more potential profits still on the table. Simply click the link below now and we’ll show you how to snap up this timely (and potentially highly profitable) new research for FREE.

Click here to snap up your copy of “Leave Your Wallet at Home: 2 Stocks for the Digital Payments Revolution.”

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of Class Limited and Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

NEW. Five Cheap and Good Stocks to Buy in 2019…

Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.