Wisr FY24 Financial Results and Strategic Growth Plans
WISR LIMITED (WZR) Share Update August 2024 Tuesday 27th
Wisr Announces FY24 Financial Results and Strategic Growth Plans
Wisr Limited has released its financial results for FY24, detailing significant achievements and outlining strategic plans for future growth.
Instant Summary:
- Total loan originations reached $1.8 billion, up from $1.6 billion in FY23.
- A 19% decrease in operating expenses, reducing the cost-to-income ratio to 28%.
- Secured a $50 million corporate facility from Nomura to support growth.
- Launched new features in the Wisr App, including Debt Bustr.
- Achieved a 57% year-over-year increase in monthly active users of the Wisr App.
Financial Performance
Wisr reported total loan originations of $1.8 billion for FY24, an increase from $1.6 billion in FY23. The company's portfolio yield improved to 10.90%, up from 10.17% in the previous year. Operating expenses were reduced by 19%, bringing the cost-to-income ratio down to 28% from 36% in FY23.
Despite challenging macroeconomic conditions, Wisr limited its EBITDA loss to $2.3 million, compared to a loss of $0.5 million in FY23. The company's operating revenue increased by 2% to $93.8 million, driven by improved yield metrics.
Strategic Initiatives
Wisr undertook several strategic initiatives during FY24 to position itself for future growth. The company secured a $50 million corporate facility from Nomura, which will bolster its balance sheet and support loan book growth. Additionally, Wisr completed its fourth term deal, Freedom 2023, which lowered its funding cost.
The company also focused on enhancing its customer experience by launching new features in the Wisr App, including Debt Bustr, which helps customers consolidate their debts. Monthly active users of the Wisr App increased by 57% year-over-year, reflecting the app's growing popularity.
Operational Highlights
Wisr maintained the quality of its prime loan book, with an average credit score of 782. The company also improved its internal technical capabilities for better collections strategies. Following leadership changes in early FY24, Wisr undertook an initiative called Wisr 2.0, which included an independent cultural review and a reset of company values. Employee engagement scores increased from 68% to 79% in the second half of FY24.
Wisr's return to growth was marked by a 30% increase in Q4FY24 run rate loan originations compared to Q3FY24. The company plans to continue this momentum into FY25, with a focus on increasing application flow, loan origination volumes, and average loan sizes.
The financial results and strategic initiatives announced by Wisr are likely to have a positive impact on the company's stock. The significant reduction in operating expenses and the increase in loan originations indicate strong operational performance. The secured corporate facility from Nomura provides additional financial stability, which is expected to boost investor confidence.
Investor Reaction:
Analysts are likely to react positively to Wisr's financial results and strategic initiatives. The company's ability to grow loan originations and reduce operating expenses in a challenging macroeconomic environment is commendable. The secured corporate facility from Nomura is also expected to be viewed favorably by investors.
Conclusion:
Investors should closely monitor Wisr's performance in FY25 as the company continues to implement its growth strategies. The financial stability provided by the secured corporate facility and the enhancements to the Wisr App are expected to drive future growth. Investors are encouraged to stay informed about Wisr's progress and consider the potential long-term benefits of the company's strategic initiatives.