Raiz (ASX:RZI) share price rallies 8% on record quarterly results

Shares in the mobile-first financial services platform continue to kick goals.

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Investors are bidding up the Raiz Invest Ltd (ASX: RZI) share price on Wednesday after the company released its June quarter results.

At the time of writing, the financial technology company’s share price is up 8.33% to $1.69.

Raiz share price rallies higher on record quarterly results

In the June quarter, Raiz achieved record results for global active customers, funds under management (FUM) and revenue.

Global active customers totalled 456,927 at quarter-end, an increase of 86.7% on the prior corresponding period (pcp). The company said that the increase was “in line with expectations on organic and paid acquisitions across geographies”.

The company delivered a 76.7% increase in normalised revenue to $3.6 million, underpinned by an increase in user maintenance fees, account fees and advertising revenues.

Raiz highlighted that its Australian businesses continue to operate on a cash-flow positive basis, with normalised revenue increasing 17.4% in the June quarter. This growth was supported by a similar uplift in Australian FUM, up 15.2% quarter-on-quarter to $799.6 million.

In addition, Raiz said that growth across its Indonesia and Malaysia businesses was meeting expectations, despite the resurgence of COVID-19 cases in both countries.

In the June quarter, active customers in Indonesia and Malaysia grew 17.2% and 19.6% respectively.

The company plans to continue to invest and grow in the region, revealing plans to expand into Thailand.

Superestate acquisition completion

Back in April, Raiz announced the acquisition of Superestate, a niche integrated superannuation and Australian residential property investment platform.

The acquisition will move $70 million of FUM in superannuation, 6,000 customers and a residential property fund onto the Raiz platform.

According to today’s announcement, the acquisition is expected to be complete on 28 July.

About the Raiz share price

The Raiz share price has rallied 79% year-to-date, with most of its gains occurring between January and February.

Raiz shares have mostly been moving sideways after hitting a record high of $2.20 on 16 February.

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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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