SelfWealth (ASX:SWF) share price falls despite accelerating growth

The trading platform is eyeing new global markets, beta testing for crypto and educational content for members

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The SelfWealth Ltd (ASX: SWF) share price has struggled to make headway this year, down 37% year-to-date. At the time of writing, shares are swapping hands for 34.5 cents apiece — a 2.82% drop on yesterday's closing price.

Despite its underperformance, the business has managed to deliver very strong growth rates as the Australian investing landscape continues to grow rapidly.

SelfWealth held its annual general meeting (AGM) on Thursday, which reiterated some of the company's key achievements, growth initiatives, and outlook.

A man talking on his mobile phone looks uncertain

Image source: Getty Images

SelfWealth's growth journey so far

The SelfWealth share price slipped 2% in FY21 despite the company delivering record results. These included:

  • Revenue surging 135% to $18.4 million;
  • Active traders increasing 105% to 95,189;
  • Positive operating cash flow of $1.1 million driven by strong revenue growth and disciplined cost control;
  • Gross profit margins of 41.4%, up from 33.4% in FY20; and
  • US trading launched in December 2020 and adopted by 29% of total active traders within the first six months.

SelfWealth described FY21 as a year where it "refined" vision, transitioning from a sole focus on ASX-listed equities to becoming a much broader wealth creation platform.

What's next for SelfWealth and its share price?

Investors will be hoping the company's plans spell good news for the SelfWealth share price. SelfWealth is on a mission to grow its market share to become the second-largest online trading platform (currently No. 4).

The retail trading environment has rapidly evolved in favour of SelfWealth's business, where its addressable market has doubled since January 2020 thanks to a jump in trading interest.

According to Investment Trends, Selfwealth's market share is gathering momentum, recently passing a big four bank and currently ranked number 4 for market share.

The AGM slides highlighted SelfWealth as ranked 183 of all websites in Australia. By comparison, Commsec, NAB Trade, CMC, and Stake sit at 58, 225, 346, and 415 respectively.

Looking ahead, SelfWealth has an exciting product roadmap including offering traders new global markets, beta testing for cryptocurrencies, and educational content for members in 2Q22.

The SelfWealth share price remains subdued despite its exciting growth plans and sector tailwinds.

This has happened in the past following the company's record FY21 full-year results announcement and recent first-quarter activities update.

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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