MoneyMe (ASX:MME) share price rallies 10% on record quarterly growth

Shares in the fintech company have rallied strongly following its best results yet.

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The MoneyMe Ltd (ASX: MME) share price is surging on Thursday after the company announced a record fourth quarter trading update.

MoneyMe is a tech-savvy non-bank lender, offering fast online loans of up to $50,000.

At the time of writing, shares in the fintech company have rallied 10% to $2.09.

MoneyMe share price surges on record performance

MoneyMe delivered near-triple digit growth across the board with loan originations of $161 million in the fourth quarter, up 391% on the prior corresponding period (pcp) and up 49% on the previous quarter.

The strong fourth quarter performance has led to full year FY21 loan originations lifting 115% on the pcp to $384 million, underpinned by accelerating growth across the company’s product suite.

The company’s gross customer receivables came in at $333 million at the end of FY21, topping its expectations and up 149% on the pcp.

MoneyMe said that the “high growth in gross customer receivables is a reflection of the diversified product strategy being successfully implemented” and expects average customer loan value to continue to increase.

Record loan originations has trickled down to the company’s financial performance, with record revenue of $19 million in the fourth quarter, up 73% on pcp and up 27% on the previous quarter.

From a full year perspective, revenues have increased 21% on pcp to $58 million.

What did management say?

MoneyMe CEO Clayton Howes said:

We are extremely pleased to report incredible growth and momentum in MoneyMe. The record revenue, originations and customer receivables demonstrate our business is accelerating. At the same time credit quality is increasing and we’re seeing strong take-up from customers across diversified products and distribution channels. This quarter’s results include significant momentum in our first secured product, Autopay, the breakthrough innovation in car lending with dealerships signing up to the new platform and a faster than expected take-up from car purchasers.

MoneyMe share price finally breaks out

The MoneyMe share price was trading sideways between September 2020 and June this year, struggling to get over $1.80 but finding support around $1.30.

It wasn’t until a trading update on 15 June, that the company’s shares managed to surge 18.75% to $1.90, before hitting a record high of $2.480 on 5 July.

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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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