The MoneyMe Ltd (ASX: MME) share price plunged today despite the company reporting record financial results.
At the market close, the MoneyMe share price was down 8.54%, trading at $1.82.
MoneyMe is a digital consumer credit business that uses technology to help people manage their personal finances.
What did MoneyMe announce?
In today's release, MoneyMe reported record originations of $170 million for the first two months of the second quarter (Q2 FY22). In the same time period, contracted future revenue increased to $158 million.
The company also reported better than expected take-up of its Autopay product.
Total gross customer receivables, which means sales made on credit for which payment has not been received, increased to $542 million. The company also noted that Autopay credit sales hit $111 million.
In addition, MoneyMe advised it has settled a $50 million drawdown announced in September through a partnership with Pacific Equity Partners.
Despite this, the MoneyMe share price fell sharply this morning and stayed down in what has been a bumpy day of trading across the broader ASX market.
For some perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) spent much of the day struggling in the red, before heading north to finish the day up 0.05% at 7245.1 points. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) was down 0.03% at the close.
Management commentary
Commenting on the trading update, MoneyMe managing director Clayton Howes said:
I am delighted with MoneyMe's accelerated growth, with the group achieving record originations and record revenues while maintaining strong credit performance.
We see this as a signal that our dynamic product, brand and service experience is paying off.
Moneyme share price snapshot
Despite today's disappointing outcome, the MoneyMe share price has lifted 28.17% over the past 12 months. The yearly high is $2.48, while the 52-week low is $1.30.
Based on its current share price, MoneyMe has a market capitalisation of roughly $312 million.
