PEXA Group Ltd (ASX: PXA) shares are rising on Monday morning.
At the time of writing, the property technology company's shares are up 0.5% to $11.89.
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What's going on with Pexa shares?
Investors have been buying Pexa shares this morning after it released its third quarter update.
According to the release, total transaction volumes processed by the PEXA Exchange were 871,000 in the third quarter. This is an increase of 4% from the prior comparative period.
Management advised that during the quarter, it saw transfer volume grow by 2% to 549,000. This compares to 9% growth in the prior corresponding period and reflects the Australian market being impacted by the slowing macroeconomic environment.
Refinances in the quarter benefited from the 0.25% cut to the cash rate by the Reserve Bank of Australia in February. This underpinned a 13% increase in Refinances compared to the prior corresponding period.
Things weren't as positive in its international segment. Management revealed that there is an ongoing softness in the UK remortgage market. This led to third quarter volumes falling ~4% compared to the prior corresponding period.
It also notes that Optima Legal and Smoove instruction volumes for remortgages were down 20% and 13% respectively year on year. But they were up from the second quarter.
Optima Legal and Smoove completion volumes for remortgages were down 9% and 6%, respectively, on the prior corresponding and also fell versus the second quarter. This led to Pexa's UK remortgage market share declining in the quarter to 24.5% from 26% in the second quarter.
Management commentary
Commenting on the quarter, Pexa's new CEO, Russell Cohen, said:
Trading volumes for our Australian Exchange have remained resilient through the quarter despite continued macroeconomic volatility. At this time, we reaffirm guidance for FY25, however as I continue to conduct an in-depth assessment of our business, matters may arise in the lead up to year end which could impact our guidance on Significant Items and Depreciation & Amortisation.
In my first month at PEXA, I have been struck by the enthusiasm and pride of our people in our technology and solutions that make a real difference in people's lives, and I look forward to continuing my engagement with PEXA's stakeholders.
Guidance
As mentioned above, its guidance for FY 2025 remains unchanged at this point.
This means group business revenue growth of 13% to 19% and a group operating EBITDA margin of at least 34%.
It also still forecasts specified items of $35 million to $40 million and depreciation and amortisation of $98 million and $102 million.
