The SelfWealth Ltd (ASX: SWF) share price is down 11.96% to 40.5 cents this morning after the company announced its fourth quarter results.
SelfWealth is an emerging share trading platform in Australia, offering a flat $9.50 per trade regardless of trade size.
How did SelfWealth perform?
The SelfWealth share price is facing selling pressure this morning despite achieving growth across a number of key reporting metrics.
SelfWealth was pleased to report quarterly operating revenue of $5.11 million, its second-largest quarter on record.
Its revenue growth was underpinned by continued growth across key operating metrics including active traders, client cash and securities held on the platform.
During the quarter, SelfWealth grew its active traders by 9,195 to 95,189, representing a 105% increase on a year-on-year basis.
Total client cash held in Australian dollar cash accounts cruised to a record high of $523 million.
In response to the record cash balances, SelfWealth said this could "suggest that retail investors are somewhat wary of the high valuations in the market at present and have taken some cash out of the market in anticipation of better opportunities in the future".
In addition, total securities held on Holder Identification Numbers (HIN) continued to trend higher to $5.86 billion, up from $5.15 billion at the end of March.
The company said that growth in securities held on the platform was propped up by the market as well as new clients transferring their securities onto the SelfWealth platform.
However, it's worth noting the company experienced negative quarter-on-quarter growth in terms of number of trades executed by clients. June quarter trade figures came in at ~357,000, down from a high of ~514,000 in Q3 FY21.
SelfWealth said that "this was in line with an overall drop in equities trading across the ASX".
In addition, the company said it began implementing a more "aggressive marketing strategy" in the June quarter. As well, it says it's strengthening its management team with newly appointed CFO Mandy Drake and key hires in technology and product streams.
What did management say?
SelfWealth CEO Cath Whitaker commented on the company's performance:
"SelfWealth continues to experience double-digit growth in the number of active traders, and our member base is highly engaged with significant new customer acquisition growth from referral channels. We are very pleased that in a quarter with lower market volatility globally, our client base increased, and the cash balances and value of their HIN based securities on the SelfWealth platform grew strongly. Recent diversification of revenue streams has seen US brokerage and Foreign Exchange revenue and increased subscription collections assist in delivering a healthy revenue number for the quarter.
What does SelfWealth have in store for FY22?
SelfWealth announced a number of exciting product and technology plans for FY22.
The company said it is currently negotiating with multiple cryptocurrency exchanges with plans to roll out a new cryptocurrency product in Q2 FY22.
Furthermore, SelfWealth is looking to add additional international markets, including Hong Kong, for its investors. Additional international market options are expected to be available in Q3 FY22.
Unfortunately, the positive news today was unable to inspire investors with the SelfWealth share price tumbling almost 12% to a 13-month low of 40.5 cents.
