PEXA (ASX:PXA) share price rockets 10% on guidance boost

The company significantly lifted its guidance for the full financial year.

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Key points

  • PEXA share price lifts off on strong outlook
  • The online property exchange network operator reports for first time as a listed company
  • Revenues and profits both well up year-on-year

The PEXA Group Ltd (ASX: PXA) share price is surging today, up 9.8%.

PEXA shares closed yesterday at $17.01 and are currently trading at $18.68.

The online property exchange network operator is a newcomer to the ASX. Having listed in July last year.

Below, we take a look at the highlights from the company's financial results for the half year ending 31 December (1H FY22).

PEXA share price lifts off on strong outlook

  • Revenue of $145.4 million, up 46% from 1H FY21
  • Pro forma earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 71% year-on-year to $75.5 million
  • Pro forma net profit after tax (NPAT) of $25.9 million, up $29.7 million from the prior corresponding period
  • Pro forma net free cash flow before interest and tax of $45 million increased 39%

What else happened during the half year?

The boost in revenue and strong outlook that's seeing the PEXA share price lift off today was helped by a 37% increase in PEXA Exchange transactions during the half, which reached 2.1 million.

The company also reported that it has now facilitated more than 10 million property transactions since launching. Those transactions are worth more than $2 trillion. PEXA reported it is currently supporting more than 9,600 practitioners, 160 financial institutions and 1.1 million consumers.

During the 1H FY22, PEXA Insights also launched its first two products. These are designed to help improve financial institution efficiency.

On the international expansion front, the company said that "momentum continues to build in PEXA International", reporting "significant progress" during the half year with its United Kingdom market entry strategy.

What did management say?

Commenting on the results, PEXA's CEO Glenn King said:

The company's growth trajectory continued over the first half of FY22. Our PEXA Exchange platform has continued to perform strongly, with the positive property market conditions of FY21 continuing into FY22…

In addition to our current strong operating performance, we have made meaningful progress on our growth initiatives. Following successful Bank of England payments solution testing with seven lenders in January, we have signed up the first lenders onto our platform in the UK, making PEXA the UK's 7 th net settlement payment system to clear through the Bank of England.

The PEXA share price could also be getting a boost today from King's bullish outlook for the full year. "We now expect to materially exceed previous Prospectus guidance across FY22 and have increased guidance across all key earnings metrics," he said.

What's next?

PEXA said that it's on-track with its UK entry plans and expects to go live later in 2022. And ASX investors look to be bidding up the PEXA share price in response.

The company said following the strong half year results, it expects to exceed its FY22 Prospectus forecasts. PEXA upgraded guidance across key financial metrics.

That includes:

  • Boosting its forecast revenue to $265 – $275 million, up from $246.9 million
  • Increasing its forecast pro forma NPATA to $70 – $80 million, up from $59.2 million
  • And lifting its pro forma EBITDA projection for FY22 to $120 – $130 million, up from the previous estimate of $107.6 million

PEXA share price snapshot

Despite today's big boost, the PEXA share price remains down 9% in the new year. That compares to a year-to-date loss of 5% posted by the S&P/ASX 200 Index (ASX: XJO).

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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