The SelfWealth (ASX:SWF) share price drops 8% despite revenue leap

The SelfWealth (ASX: SWF) share price is down 8% this morning, despite strong revenue growth. We look at the company’s latest results.

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The SelfWealth Ltd (ASX: SWF) share price is falling today, down 8% at 69 cents in morning trade.

This comes after the release of the online brokerage company’s half-year financial results (H1 FY21).

What results did SelfWealth report today?

In this morning’s ASX release, SelfWealth reported a 278% increase in total revenue for the half-year. Total revenue of $8.43 million was up from $2.23 million in the previous corresponding half year.

Earnings before income, taxes, depreciation and amortisation (EBITDA) came in at a loss of $372,000, a big improvement from the $1.44 million EBITDA loss in H1 FY20.

The company’s cost of operations soared from $1.45 million in the corresponding half year to $5.25 million in this half.

SelfWealth reported a 208% increase in active traders, reaching 67,349 at the end of the half-year, and a 379% increase in total trades, up to 756,465. The total client cash held of $435 million was up 220 year-on-year.

This morning SelfWealth also released a trading update with some results for January and the first weeks of February 2021.

SelfWealth reports record new numbers in trading update

The company reported it had achieved a record number of new active traders and a record number of trades in its domestic and United States markets. It said that US numbers were growing particularly strongly, with US trades now close to 10% of its total daily trade numbers.

Average daily registrations for the company have also soared in 2021, up from 240 per day in the December quarter to 605 per day in January. So far, that increase is keeping pace this month, with an average of 855 daily registrations in February.

29 January was a record day for the company, with 2,211 registrations on the day. SelfWealth attributed the record numbers to “the peak of the GameStop trading frenzy amidst platform issues and trading restrictions at competing trading platforms”.

SelfWealth share price snapshot

Barring the selloff during the COVID-19 market panic last year, when nearly all shares sold heavily, SelfWealth’s shares have been in an upward trajectory for the past 12 months. The SelfWealth share price is up 329% since this time last year. That compares to a 1% loss on the All Ordinaries Index (ASX: XAO).

So far in 2021, the SelfWealth share price is up 33%.

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Motley Fool contributor Bernd Struben 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.

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