The Raiz Invest Ltd (ASX: RZI) share price will be one to watch on Wednesday.
This follows the release of the investment platform provider’s third quarter update after the market close.
How is Raiz Invest performing?
The good news for shareholders and the Raiz Invest share price is that the company continued its growth during the third quarter.
According to the release, for the three months ended 31 March, Raiz achieved record results for active customers and funds under management (FUM).
The company’s active customers increase 22.1% to 419,552 and FUM in Australia grew 14.6% to $694.3 million.
This led to Raiz reporting total normalised revenue of $3.1 million for the quarter, up 39% compared to the prior corresponding period. It was also up 26.3% over the second quarter of FY 2021.
Positively, the company’s Australian operation remained operating cashflow positive during the quarter. This left it with $9.9 million in cash, cash equivalents and term deposits at the end of the period.
Also potentially giving the Raiz Invest share price a boost today will be news that it has increased its maintenance fee from $2.50 to $3.50 without any push back from customers.
The company made the move on 1 April with no net churn of paying customers.
The effects of this fee increase will flow through during the current quarter.
Raiz Invest’s Managing Director and CEO, George Lucas, was pleased with the quarter.
He said: “With the economic and social impact of COVID-19 easing in Australia in 2021, the surge in Active Customers in the March quarter demonstrated that our organic growth is firmly on track. Over 75,000 new Active Customers joined the platform in this quarter.”
“Important initiatives achieved in this quarter in Australia included the roll out of our custom portfolio and enabling the $730 billion self-managed super fund sector the opportunity to invest on the Raiz platform.”
“Just as the decision to offer Bitcoin has attracted keen interest (the Sapphire portfolio with a target weight of 5% to Bitcoin now has more than 40,000 customers), so too has the decision to allow customers to take responsibility for their own portfolios. Both decisions flowed from customer engagement, reflecting Raiz’ ability to respond to customer expectations.
“The continued strong growth in customer numbers and FUM achieved in Australia, despite the recent fee increase, demonstrates the unique nature of the Raiz platform and the loyal nature of the customers we attract,” he concluded.
The Raiz Invest share price is up 69% since the start of 2021.