The MoneyMe Ltd (ASX: MME) share price is shooting straight for the moon.
At the time of writing, shares in the consumer credit business are trading for $2.09 – up 10%. For context, the S&P/ASX 200 Index (ASX: XJO) is 0.28% higher.
The positive price movement comes as the company releases its trading update for the first quarter of FY22.
Let's take a closer look at today's announcement.
What did MoneyMe announce?
The MoneyMe share price may be rocketing today due to the following results:
- $1 billion in customer receivable originations since 2013.
- Originations of $173 million in the quarter – up 283% on the prior corresponding period (pcp) and 7.45% over the previous quarter.
- Gross customer receivables of $452 million – up 227% on the pcp and 26.7% on the prior quarter.
- Record revenue of $23 million – up 92% on the pcp and 21% on Q4 of FY21.
What did management say?
MoneyMe's Managing Director and CEO Clayton Howes said:
I am delighted to announce that MoneyMe has passed the $1bn origination milestone. This reflects our consistent focus over time to invest in and develop the digital capabilities of our Horizon technology platform, an unrelenting focus on the Generation Now customer and our persistent innovation.
What's affecting the MoneyMe share price?
Looking deeper into the numbers, MoneyMe says its personal loans and freestyle divisions continue to drive the majority of growth in the business – both being quite resilient during lockdown.
Autopay, MoneyMe's consumer car financing facility, achieved "significant growth despite the challenges of car buyers during lockdown".
The MoneyMe share price may also be rising due to its "strong" performing credit and book quality metrics. Net charge-offs were 5.4% down on the pcp and COVID-19 deferrals were low at 0.2% of customer receivables.
MoneyMe share price snapshot
Over the past 12 months, the MoneyMe share price has increased 36.4%. Year-to-date, shares in the company have appreciated 42.9%.
The 52-week high is $2.48 and the 52-week low is $1.29.
MoneyMe has a market capitalisation of approximately $358 million.
