Raiz (ASX:RZI) share price rockets on FY21 results

Let’s take a closer look.

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The Raiz Invest Ltd (ASX: RZI) share price has soared more than 8% in today’s trading session.

Investors are bidding shares in the company higher after it released its full-year results for FY21 earlier today.

Let’s take a look at what Raiz announced.

Strong growth in FY21 spurs Raiz share price higher

Here are some of the key metrics Raiz reported for FY21;

  • 37% year on year (YOY) increase in Group Revenue of $13.4 million
  • Global Active Customers up 87% YOY to 456,927
  • Australian funds under management (FUM) up 76% YOY to $799.6 million
  • Superannuation FUM up 53% YOY to $106.6 million
  • Micro Investing Platform segment revenue up 40% YOY to $11.4 million
  • Revenue Per Customer (run rate) in Australia up 32% YOY

Raiz also highlighted its strong balance sheet, noting cash on hand of $19.4 million as of 30 June 2021.

What happened in FY21 for Raiz?

In its results presentation, Raiz noted that growth in FY21 was fuelled by its Australian operations.

Throughout the financial year, the company noted implementing a number of features to increasing customer engagement.

Raiz introduced Custom Portfolios in Australia due to attract new customers and FUM. The company also introduced the onboarding of self-managed superannuation funds (SMSFs).

In addition, the company also launched its Raiz Home Ownership business in FY21, which focuses on helping first homeowners enter the property market.

Raiz also reported continued growth across Southeast Asia for FY21, despite the ongoing impacts of Covid-19.

During the March quarter, Raiz introduced new payment gateways in Indonesia to help facilitate recurring payments and improve customer experience.

What did management say?

Managing Director and CEO of Raiz George Lucas noted:

In Australia, we remain on track to hit our goal of $1 billion of FUM by the end of 2021. We see the Superestate acquisition, the first in our five-year history, as an important component in our domestic strategy going forward. In addition to giving us more FUM and Active Customers, it will allow us to offer residential property as an asset class and enhance our data analytics.

What’s next for Raiz?

Raiz is an Australian financial technology (fintech) company that provides users with a mobile-focused micro-investing platform.

The company charges users a flat monthly investment fee which comprises more than 60% of the company’s revenue. As a result, FUM and active customers are key metrics to the company’s ability to generate recurring revenue.

Raiz highlighted that the company remains focused on growing its business across all geographies.

The company plans to follow low-cost customer acquisition to drive new growth and also highlighted various new product developments heading into FY22.

At the time of writing, the Raiz share price is trading more than 7.5% higher for the day.

Shares in Raiz were up more than 8% earlier, after hitting an intraday high of $2.09.

Since the start of the year, shares in Raiz have surged more than 116% in 2021.

Should you invest $1,000 in Raiz right now?

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Motley Fool contributor Nikhil Gangaram 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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