The Prospa Group Ltd (ASX: PGL) share price is gaining today following the company’s release of a positive trading update.
The financial technology company detailed its performance during the fourth quarter of the 2021 financial year.
At the time of writing, the Prospa share price is trading 12.21% higher at $1.195 after hitting a new 52-week high of $1.20 earlier today.
Let’s take a closer look at today’s news from Prospa.
The quarter that’s been
In its release, Prospa reported record originations and revenue growth. The company’s revenue for the quarter just been was $33.4 million – 17% higher than the previous quarter.
However, due to increased investments in its technology, products, sales, and marketing, Prospa’s operating expenses were $20.9 million – up 17.4% on the previous quarter.
Over the quarter ended 30 June 2021, Prospa saw originations of $182.7 million. That’s up 38.2% on the previous quarter’s originations and 798% more than the prior corresponding quarter.
Nearly three quarters of its originations came from the company’s small business loan and the rest was from its line of credit product.
In New Zealand, the company’s originations increased by 72% quarter on quarter.
Additionally, 50% of Prospa’s customers were returning customers.
Right now, Prospa has $458.6 million of available third-party debt facilities, of which, $97.2 million is undrawn. The company also has $80.4 million of cash.
Commentary from management
Prospa CEO Greg Moshal commented on the news, saying:
Prospa is now benefiting from the rapid recovery in the Australian, New Zealand and global economies. This quarter, Prospa surpassed many of our all-time record results…
Prospa’s success and identity is built on the power of technology. It enables us to efficiently and rapidly service the financial needs of small-to-medium enterprises both within Australia and New Zealand, particularly as many are now reinvesting in the growth of their businesses.We have further increased our investment in technology this quarter to support our strategy to provide a broader suite of cashflow management products meeting the needs of our customers.
Prospa share price snapshot
Today’s gains have seen the Prospa share price lifting almost 38% higher than it was at the start of 2021.
It has also gained 33.3% since this time last year.
The company has a market capitalisation of around $175 million, with approximately 164 million shares outstanding.
