S&P/ASX 200 Index (ASX: XJO) stock Netwealth Group Ltd (ASX: NWL) is charging higher today.
Shares in the investment platform provider closed yesterday trading for $26.16. In morning trade on Thursday, shares are swapping hands for $27.15 apiece, up 3.8%.
For some context, the ASX 200 is up 0.5% at this same time.
This outperformance comes following the release of Netwealth's September quarterly update.
Here are the highlights.
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ASX 200 stock lifts off on record quarter
The ASX 200 stock is marching higher today after the company reported a record quarter for Funds Under Administration (FUA).
As at 30 September, FUA stood at $95.4 billion. This was up by $7.4 billion from the prior quarter, driven by FUA net inflows of $4.0 billion and positive market movement of $3.4 billion.
The record level of FUA net inflows for the September quarter was up 93.5% from the prior quarter.
In other core metrics helping boost the Netwealth share price today, custodial FUA increased by 32.1% to $94.9 billion for the 12 months to 30 September. Custodial FUA net inflows of $3.9 billion for the September quarter were up 91.9% quarter on quarter. And the managed account balance of $19.4 billion was up 10.4%.
Funds Under Management (FUM) for the ASX 200 stock also increased by $2.0 billion to reach $22.5 billion at 30 September. FUM net inflows for the September quarter were $1.4 billion.
The company also increased its total number of accounts by 2.7%, to 147,165 accounts at 30 September.
New CFO appointment for Netwealth
In another potential boost for the ASX 200 stock, Netwealth also announced that Hayden Stockdale will take over as chief financial officer on 25 November. Stockdale has held prior CFO roles with RMS Cloud, Catapult Sports, SXiQ Digital, United Petroleum, and Interactive.
Commenting on the new CFO appointment, Netwealth CEO Matt Heine said:
We look forward to welcoming Hayden to the team and are confident his extensive experience in financial management and strategic planning from various multi-national technology businesses, will drive Netwealth's continued success.
I would also like to take this opportunity to pay tribute to and thank our retiring CFO, Grant Boyle, who will be assisting with the handover.
What's next for the ASX 200 stock?
Looking at what could impact the Netwealth share price in the year ahead, the ASX 200 stock said it remains in a strong financial position.
Management said the company is highly profitable, with a strong EBITDA margin. And they noted the very high correlation between EBITDA and operating cash flow, "resulting in strong cash generation".
Netwealth also cited its "very high" levels of recurring revenue, resulting in predictable revenue, along with its low capital expenditure, debt free status, and significant cash reserves, as reasons to be positive on its outlook.
