The Wisr Ltd (ASX: WZR) share price is flying high after the company released a trading update for the June quarter.
By market close, shares in the non-bank consumer lender were trading at 30.5 cents each – up 9.09%. Competitor MoneyMe Ltd (ASX: MME) ended the day 1.46% higher by comparison.
Let's take a closer look at today's news.
The Wisr share price is soaring
In a statement to the ASX, Wisr gave an update on its cash position and activities during the last quarter. Overall, the company experienced a cash inflow of approximately $59 million for a total cash position of $92.4 million.
The main contributor to this position was $155 million in financing activities – including $55 million from a capital raise and $105 million debt facility.
Operations saw a cash outflow of $868,000. That's despite a "record" $9.7 million in revenue for the quarter – an increase of 234% on the prior corresponding period and 29% on the previous quarter. The company also says the month of June was cash positive.
Wisr loaned $95.1 million to customers in the quarter.
Management commentary
Wisr CEO Anthony Nates commented
It's an incredible credit to the Wisr team for delivering 20 consecutive quarters of growth and a maiden cash flow break-even month on the back of an exceptional 234% revenue growth, compared to the same period last year. This milestone result should give the market confidence around our market leading unit economics and our ability to deliver a highly profitable business as we continue to scale.
Nates said Wisr had taken "prudent steps" to strengthen the balance sheet with the recent equity raise that was supported by Goldman Sachs.
Combined with our inaugural $225 million ABS issue, these two transactions put Wisr in an incredibly strong position to extend our technology advantage and aggressively grow lending market share in the years ahead.
Wisr share price snapshot
Over the past 12 months, the Wisr share price has increased 20%. The S&P/ASX 200 Index (ASX: XJO) is up 23.4% over the same time. Year-to-date, however, Wisr shares are 58% higher.
The company has a market capitalisation of $362 million.
