The Class Ltd (ASX: CL1) share price will be one to watch on Tuesday following the release of its September quarter update this morning.
What was in the update?
According to the release, during the second quarter the SMSF platform provider grew the total accounts on its platform by 2,273 or 1.25% to 181,355.
This comprised 172,555 Class Super accounts, 8,205 Class Portfolio accounts, and ~600 Class Trust accounts.
This growth was driven partly by the addition of 13 new customers during the three months, bringing its total up to 1,558.
Managing Director and CEO, Andrew Russell, advised that the company was pleased with the progress being made by the Class Trust product.
He said: "We are pleased with the progress of Class Trust and were encouraged by the positive engagement with customers at Class Connect regarding the product. We are working closely with Findex and other Class users to ensure the development of Trust meets the needs of accountants the way Class Super has done so successfully."
Reimagination Strategy.
This morning the company also provided an update on the launch of the Reimagination Strategy which is aiming to clarify the vision for the business and drive revenue growth.
Mr Russell advised: "The strategy has been clearly supported by customers which is evidenced by a record 580 registrations at our Class Connect conference last month. Shareholder sentiment regarding the strategy has also given us strong validation and endorsement that this is the right way forward for Class."
"We are underway in our quest for reimagination, working hard to build the foundations of world class technology, product and people to ensure our investment delivers us accelerated growth in FY21 and beyond," he added.
Should you invest?
Whilst the company's new strategy could be a key driver of growth in the coming years, I intend to wait and see what impact it has on its performance over the next 12 to 18 months.
For now, I think its shares are expensive for the paltry growth it is achieving and would suggest investors skip it and buy fellow fintech share Bravura Solutions Ltd (ASX: BVS) instead.
