Raiz Invest Ltd. · ASX:RZI
Raiz Invest — FY2022 Earnings Presentation
24 slides from Raiz Invest's earnings presentation, Aug 25, 2022
Slide 1: FY 2022 Results Presentation
FY 2022 Results Presentation 25 August 2022 Australia’s leading WealthTech proposition delivering in all economic cycles Level 11, 2 Bulletin Place, Sydney NSW 2000 Announcement authorised by Board of Directors
Slide 2: Important notice and disclaimer
Important notice and disclaimer This presentation has been prepared by Raiz Invest Limited (ACN 615 510 177) (RAIZ). References in this presentation to RAIZ include its group of companies and trusts. This presentation is subject to the conditions outlined below. Your receipt or viewing of the Presen
Slide 3: FY22 Results overview
01 FY22 Results overview
Slide 4: Results highlights
Results highlights Strong results provide a solid platform for ongoing growth and path to profitability Operational Financial Active customers (Group) FY22 Micro Investing Platform Revenue (Group) 660,624 A$17.4M +36% - 12 Month change (31 July 2022) +52% - 12 Month change (30 June 2022) FY22 Revenu
Slide 5: Resilient business for all economic cycles
Resilient business for all economic cycles Our revenue model and deep customer engagement has us very well placed Customers demonstrating price inelasticity Australia delivering strong unit economics 16% Australian customer CAGR over the last 4 years whilst A$55.9 ARPU (run-rate), A$17.8 CAC, 64% Gr
Slide 6: Continued robust customer growth
Continued robust customer growth Consistent active customer growth achieved with increased pricing July 2022 Customer Composition: 660k Malaysia Active 700,000 Australia Customers 17% 44% 39% 500k Indonesia 400k 350,000 200k 250k 0 May-19 May-20 May-21 May-22 Aug-18 Sep-18 Nov-18 Dec-18 Aug-19 Sep-1
Slide 7: Brand and marketing strategy delivers low-cost customer growth
Brand and marketing strategy delivers low-cost customer growth Effective marketing appealing to the target customer base and underpinned by word-of-mouth referrals Online Blog & Exposure Digital Marketing Seven West Media Partnership 30-Nov-21 Seven West Media makes strategic investment in Raiz Raiz
Slide 8: Our digital investment products unlock financial freedom
Our digital investment products unlock financial freedom Comprehensive investment product suite that has continued to evolve to suit the needs and requests of target customers Raiz Invest Raiz Invest Super Raiz Home Ownership Raiz Rewards Raiz Kids n Raiz Invest users choose to invest in a n Raiz In
Slide 9: We continue to innovate and expand our product suite
We continue to innovate and expand our product suite Track record of expansion and data rich proposition with exciting future opportunities Future Opportunity Upside to ARPU from multiple investment & other financial products 2021 Custom Portfolio Launched Increase Custom offering Raiz Property Fund
Slide 10: Our revenue is not tied to market performance
Our revenue is not tied to market performance ~80% of revenue not impacted by market performance Sources of Revenue Maintenance Fee Netting 63% 3% Bid/Offer spread captured where an A monthly subscription fee of A$3.50 per acquisition or disposal of ETF units does month (or A$4.50 per month for Cust
Slide 11: We have delivered continued outperformance across key metrics
We have delivered continued outperformance across key metrics Strong results providing a solid platform for ongoing growth and path to profitability demonstrated by Australian business Active Customers FUM Revenue (Raiz Micro Investing Platform) (#) (A$m) (A$m) 17.4 652,702 954.4 Group 808.0 11.4 45
Slide 12: Detailed financial information
02 Detailed financial information
Slide 13: Statement of Financial Performance
Statement of Financial Performance To be read in conjunction with the Financial Report for the year end 30 June 2022 A$’000 FY21 FY22 % vs FY21 • Group revenue up 40% year on Year (YOY) to A$18.7m Micro investing platform 11,422 17,384 52% Other financial services 1,976 1,311 (34%) • Micro Investing
Slide 14: Statement of Cash Flows
Statement of Cash Flows To be read in conjunction with the Financial Report for the year end 30 June 2022 A$’000 FY21 FY22 • Net cash outflow from operating activities for FY22 was Receipts from customers 13,705 20,136 A$2.8m, up 357% from A$0.6 million in FY21 Payments to suppliers and employees (1
Slide 15: Statement of Financial Position
Statement of Financial Position To be read in conjunction with the Financial Report for the year end 30 June 2022 A$’000 FY21 FY22 • As of 30 June 2022, Raiz has a strong balance sheet Assets with cash, cash equivalents and term deposits totaling Cash and cash equivalents 19,199 15,538 A$15.7 millio
Slide 16: Outlook
03 Outlook
Slide 17: Consistent and disciplined delivery of our strategy
Consistent and disciplined delivery of our strategy Focusing on continued growth and path to profitability New products and services to improve engagement Grow Grow revenue active per customers customer Great customer service & UX Utilise best-in-class Increase ‘Lifetime Value Grow Focus on low cost
Slide 18: We have a large addressable market in front of us
We have a large addressable market in front of us Favourable market dynamics support a large addressable market opportunity in Australia 25.4m Market growth opportunities § Natural growth 0.5% p.a. to Dec-21 19.3m § Further upside from net migration (Pre-covid: 1.0% to Dec-19) § 18.2% of the populat
Slide 19: Management strategic outlook
Management strategic outlook Significant growth opportunity continues with clear path to profitability § Continue to grow core Australian business with improved product offering Top line growth § Southeast Asian expansion progressing § Deepen customer trust to increase share of wallet bringing reven
Slide 20: Appendix
Appendix
Slide 21: Raiz at a glance
Raiz at a glance Market leading WealthTech business Business description Investment highlights n Raiz (formerly a joint venture with Acorns US) launched in Australia in 2016. As at 31 July Favourable macroeconomic drivers and increasing addressable market 2022, Raiz has over ~2.9m Customer Sign Ups,
Slide 22: Global expansion underway
Global expansion underway Scale in core market and option to expand in high growth markets Total Customer Sign Investment Active Funds Under FY22 Platform FY22 Platform FY22 CAC Population Ups Accounts Customers Management Revenue Gross Profit % Australia c.26m 1,246,096 595,503 289,500 A$940.31m A$
Slide 23: Market information
Market information Share price, capital structure, and significant shareholders Share Price & Volume Capital structure (19-Aug-22) A$2.5 2.0m Shares on issue 93.4m Share price A$0.65 12 month range A$2.06 - A$0.59 A$2.0 Market capitalisation A$60.7m 1.5m Net cash & term deposits 30 June 2022 A$15.7m
Slide 24: Thank you!
Thank you! Investor and media enquiries: Brendan Malone ir@raizinvest.com.au ASX:RZI