Why the MoneyMe (ASX:MME) share price is charging 6% higher today

The MoneyMe Ltd (ASX:MME) share price is on the move on Wednesday following the release of a positive update this morning…

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The MoneyMe Ltd (ASX: MME) share price has been a strong performer on Wednesday.

At the time of writing, the digital credit company's shares are up 6% to $1.43.

This has reduced the year to date decline by the MoneyMe share price to just 2.5%.

Why is the MoneyMe share price charging higher?

Investors have been buying MoneyMe shares following the release of an update this morning.

Pleasingly, that update was positive enough to offset broad weakness in the tech sector following a selloff on Wall Street's Nasdaq index overnight.

According to the release, MoneyMe was on form again during the month of April and delivered record originations of $47 million for the month. This is up 693% over the prior corresponding period.

Management advised that the strong performance in originations was achieved through existing products, excluding its recently launched Autopay innovation.

In light of this, the company has revised its expectations for gross customer receivables to exceed $300 million in FY 2021. This will be up at least 225% year on year from $134 million in FY 2020.

This is expected to lead to overall revenue coming in at $58 million to $62 million in FY 2021.

Management commentary

MoneyMe's Managing Director and CEO, Clayton Howes, was pleased with the company's performance in April.

He said: "We are pleased to report the strong growth and momentum in MoneyMe. Record originations in April are a direct result of our products continuing to deliver amazing customer experiences, including from automated on-the-spot decisioning and fast settlement geared to the needs of Gen Now."

"We have a strong product pipeline to support revenue growth. Our lastest product, the recently launched Autopay, is a same day drive away finance innovation we expect to materially add to the growth of MoneyMe. Launched on the 21st of April, Autopay is already transacting sales in dealerships," he concluded.

Motley Fool contributor James Mickleboro 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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