Moneyme (ASX:MME) share price slides 9% despite record trading update

A record result hasn't stopped MoneyMe shares from falling on Monday.

| More on:
Group of entrepreneurs feeling frustrated during a meeting in the office. Focus is on man with headache.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Technology Shares

A woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.
Technology Shares

1 ASX artificial intelligence (AI) stock that could help turbocharge your portfolio

Analysts at Goldman Sachs are raving about this AI stock.

Read more »

a group of tech people gather around a computer operated by a young woman while the group looks on in support.
Technology Shares

Brokers say this rapidly growing ASX 200 tech stock is a strong buy

Big returns could be on the cards for owners of this stock.

Read more »

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Technology Shares

Here are 'blue-sky valuations' for these hot ASX 200 tech stocks

These ASX 200 tech stocks could have huge potential according to analysts.

Read more »

A person sitting at a desk smiling and looking at a computer.
Technology Shares

'You could make a decent amount of money' from this ASX 200 tech stock

This stock could be an underrated play.

Read more »

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

What's happening with the NextDC share price on Thursday?

NextDC is raising $1.32 billion to accelerate its data centre developments amid the rapid growth of AI.

Read more »

A man sits in casual clothes in front of a computer amid graphic images of data superimposed on the image, as though he is engaged in IT or hacking activities.
Technology Shares

Goldman Sachs just slapped a buy rating on this ASX 200 tech stock

The broker thinks this market darling can keep rising.

Read more »

Happy man and woman looking at the share price on a tablet.
Technology Shares

Up 61% since February, why this ASX 200 tech stock could 'continue to surprise to the upside'

The ASX 200 tech share is poised for more growth, according to this leading fund manager.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Technology Shares

What could $5,000 invested in Block shares become in 1 year?

Is it worth investing in this tech stock? Let's find out.

Read more »