Pexa share price higher as revenue, profit surges in FY22

Pexa Group posts FY22 earnings today.

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Key points
  • Pexa Group posted FY22 earnings today 
  • The company recognised growth at the top line, driven by favourable market conditions and improved operating metrics 
  • The Pexa share price is down more than 13% over the past 12 months 

The Pexa Group Ltd (ASX: PXA) share price is surging into the green today following the release of the company's FY22 results.

At the time of writing, the Pexa share price is fetching $14.95 apiece, up 2.12%. Earlier, the Pexa share price was up more than 6% at $15.60.

Mini house on a laptop.

Image source: Getty Images

Pexa share price lifts on double-digit growth

Key takeaways from Pexa's FY22 earnings announcement include:

What else happened last period for Pexa?

Favourable market conditions also led to a 22% increase in PEXA Exchange volumes, reaching 4.05 million for the year.

This brings the total value of property transactions facilitated by Pexa to more than $2.4 trillion.

The company says it is supporting more than 9,700 practitioner firms, 160 financial institutions and 1.1 million consumers each year as well.

Gross margin also improved by 100 basis points to 88%, helping pro forma EBITDA increase 28%.

Management commentary

Speaking on the announcement, PEXA Group CEO Glenn King said:

The Company's focused growth strategy and commitment to our values, our people and our community underpinned PEXA's performance in FY22, with key financial metrics outperforming Prospectus forecasts and upgraded FY22 guidance…This result reflected the dedication and commitment of our highly engaged people…delivering strong customer engagement as seen in our Net Promoter Score of 74, and high brand trust rating of 8.9 out of 10.

PEXA International's market entry in the UK is on track, with PEXA Pay being approved as the seventh net settlement payment scheme to clear through the Bank of England, technology development advancing and customer sign-ups commencing. We have signed up the first lenders onto our platform for mortgage refinances, with 'go live' to occur with the first lender next month, and we continue to explore and identify potential opportunities to further progress our development.

What's next for Pexa?

The company says it is targeting an Exchange EBITDA margin in the 50%–55% range.

It also projects to invest 20% of revenue into its PEXA Exchange technology in FY23 with priority on API development, cyber security and platform resilience to name a few.

It also plans to invest around $45 million in international expansion over the coming year, and another $15 million to support organic growth.

Pexa share price snapshot

The Pexa share price is down more than 13% over the past 12 months.

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended PEXA Group Limited. 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 Scott Phillips.

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