The WISR Ltd (ASX: WZR) share price has been a strong performer today following the release of a trading update.
At the time of writing, the neo-lender’s shares are up 4.76% to 22 cents. This compares to the All Ordinaries Index (ASX: XAO) which is down 0.5% at 6,402 points in early afternoon trade.
Q1 FY21 record performance
Wisr reported a record performance for the quarter ending September 30. This was underpinned by a new business model that diversified funding structure and significantly improved margins.
Operating revenue grew to $4.1 million, a 358% increase on the prior corresponding period (pcp) and 37% increase on Q4 FY20. The robust result came from its Wisr Warehouse funding model which has uplifted unit economics and operating benefits.
New loan originations came to $61.9 million, up 47% on the pcp. This represented total loan originations of $306.7 million, with $50 million written under the first quarter.
In addition, Wisr said that its loan book continues to grow with prime credit customers. Just 2.2% of the company’s total portfolio loan balance, $4.6 million, is on a COVID-19 related payment arrangements. This is a 57% reduction compared to the $10.8 million reached in Q4 FY20.
Wisr advised it has a healthy balance sheet of $34.7 million in cash and liquid loan assets.
Last month, Wisr launched its second major product into the market, secured vehicle finance. The new addition has already contributed to the accelerated growth achieved in Q1 FY21. It is expected that this will expand Wisr’s loan book originations and revenue for the remaining quarters.
In addition, the fintech is seeing more Australian enter its Wisr ecosystem with over 46,000 profiles created in Q1 FY21. The platform which allows customers to look at lending, credit score and round-up products, now totals just under 300,000 profiles.
What did the CEO say?
Commenting on the positive results, Wisr CEO Anthony Nantes said:
This quarter has seen the company deliver an exceptional set of results. Through the significantly improved unit economics and operational leverage of the Wisr Warehouse, we’ve delivered an outstanding 358% growth in revenue compared to this same period last financial year, combined with record low rates in arrears despite the macroeconomic conditions.
The growth in our loan book and revenue is a direct result of consumers demanding better products and services for their personal finance needs, and the differentiated business model we have delivered. Wisr is in prime position to continue aggressively growing market share with a fairer deal, and a smarter alternative for Australia’s prime credit consumers.
About the Wisr share price
The Wisr share price is up more than 240% since the pandemic hit in March, reaching a low of 6.5 cents. Although higher of late, the Wisr share price is still down 34% from its multi-year high reached in February.