The WISR Ltd (ASX: WZR) share price has rocketed nearly 7 per cent higher this morning after reporting 275 per cent revenue growth.
Why is the Wisr share price surging?
Wisr this morning provided a trading update for the quarter ended 31 March 2021 (Q3 2021). Wisr reported an "accelerated" Q3 2021 of new loan originations, revenue growth and loan book quality metrics.
Operating revenue was a record $7.5 million for the quarter, up 275 per cent on Q3 2020 numbers. It was also a 27% increase on the $5.9 million booked in the December quarter.
Wisr has now posted 19 consecutive quarters of loan book growth. Third quarter loans totalled $97.8 million, up 151% on Q3 2020 and 17% on Q2 2021. The Aussie financial wellness provider reported "consistently low" 90+ Day arrears at 0.83%.
Secured vehicle loan products are now sitting at $21.9 million or 22.5% of the $97.8 million book. The Wisr share price has rocketed higher on the back of the update, jumping 6.8% at the open where it remains at the time of writing.
Wisr said the Q3 2021 results "exemplified the success of the Wisr Financial Wellness Platform and its impact on Wisr customers' financial wellbeing". The company said it remains strongly capitalised with $35.5 million in cash and liquid loan assets.
Wisr also executed a $21.5 million unsecured corporate loan facility during the quarter which will include drawdown at Wisr call. It also upsized its $350 million warehouse loan funding facility during the March quarter. This has allowed the loan book to continue growing, helping push the Wisr share price higher during the quarter.
Offshore, Wisr said its strategic investment in Arbor EU provides a pathway to the A$1.76 trillion European consumer finance market. Wisr's upfront consideration is $400,000 cash with further investment subject to Arbor achieving milestones.
The Wisr share price is rocketing higher on the back of yet another strong quarterly update from the Aussie financial wellness group.
