Raiz Invest (ASX:RZI) share price on watch after Q3 update

The Raiz Invest Ltd (ASX:RZI) share price will be one to watch today following the release of its third quarter update…

| More on:
woman watching asx share price on digital screen

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Raiz Invest Ltd (ASX: RZI) share price will be one to watch on Wednesday.

This follows the release of the investment platform provider's third quarter update after the market close.

How is Raiz Invest performing?

The good news for shareholders and the Raiz Invest share price is that the company continued its growth during the third quarter.

According to the release, for the three months ended 31 March, Raiz achieved record results for active customers and funds under management (FUM).

The company's active customers increase 22.1% to 419,552 and FUM in Australia grew 14.6% to $694.3 million.

This led to Raiz reporting total normalised revenue of $3.1 million for the quarter, up 39% compared to the prior corresponding period. It was also up 26.3% over the second quarter of FY 2021.

Positively, the company's Australian operation remained operating cashflow positive during the quarter. This left it with $9.9 million in cash, cash equivalents and term deposits at the end of the period.

Price increases

Also potentially giving the Raiz Invest share price a boost today will be news that it has increased its maintenance fee from $2.50 to $3.50 without any push back from customers.

The company made the move on 1 April with no net churn of paying customers.

The effects of this fee increase will flow through during the current quarter.

Management commentary

Raiz Invest's Managing Director and CEO, George Lucas, was pleased with the quarter.

He said: "With the economic and social impact of COVID-19 easing in Australia in 2021, the surge in Active Customers in the March quarter demonstrated that our organic growth is firmly on track. Over 75,000 new Active Customers joined the platform in this quarter."

"Important initiatives achieved in this quarter in Australia included the roll out of our custom portfolio and enabling the $730 billion self-managed super fund sector the opportunity to invest on the Raiz platform."

"Just as the decision to offer Bitcoin has attracted keen interest (the Sapphire portfolio with a target weight of 5% to Bitcoin now has more than 40,000 customers), so too has the decision to allow customers to take responsibility for their own portfolios. Both decisions flowed from customer engagement, reflecting Raiz' ability to respond to customer expectations.

"The continued strong growth in customer numbers and FUM achieved in Australia, despite the recent fee increase, demonstrates the unique nature of the Raiz platform and the loyal nature of the customers we attract," he concluded.

The Raiz Invest share price is up 69% since the start of 2021.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Bruce Jackson.

More on Share Market News

A susccesful person kicks back and relaxes on a comfy chair
Best Shares

If I could only buy and hold a single ASX share forever, it would be this one

There are two reasons why this stock is my first choice...

Read more »

young woman reviewing financial reports at desk with multiple computer screens
Opinions

Brokers' verdict on 4 popular ASX 200 financial stocks

Financials outperformed every other sector in FY25. What should you do now with these 4 stocks?

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Share Gainers

Why Bapcor, Ramelius, Sandfire, and WIA Gold shares are rising today

These shares are having a better day than most on Tuesday. But why?

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

Is it too late to invest in the record setting S&P 500 stock gains?

A top broker reveals what to expect next from the surging S&P 500 Index.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Boss Energy, DroneShield, Greatland, and Viva Energy shares are tumbling today

Let's see why these shares are out of favour with investors on Tuesday.

Read more »

Man smiling at a laptop because of a rising share price.
Broker Notes

4 ASX shares to buy this week: experts

Looking for investment inspiration?

Read more »

Miner and company person analysing results of a mining company.
Energy Shares

Should you buy Boss Energy shares now after Monday's huge sell-off?

Macquarie gives its verdict on Boss Energy shares following Monday’s crash.

Read more »

Excited couple celebrating success while looking at smartphone.
Broker Notes

Macquarie forecasts 28% upside for this ASX All Ords stock

Let's see why the broker is feeling bullish about this name.

Read more »