The Hub24 Ltd (ASX: HUB) share price is slipping this morning despite the company delivering another record full-year result.
Investors may have wanted more from the financial services company's FY24 figures. At the time of writing, Hub24 shares are down 2% to $49.86. In contrast, the broader financials sector is tracking 0.38% higher.
Let's dive deeper into the company's latest numbers.
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Hub24 share price fizzles on record result
For the 12 months ended 30 June 2024, Hub24 achieved:
- Record platform net inflows of $15.8 billion, up 62% from FY23
- Total group revenue up 17% to $327.3 million
- Underlying EBITDA up 15% to $118 million
- Statutory net profit after tax (NPAT) up 24% to a record $47.2 million
- Fully franked final dividend of 19.5 cents per share declared
Hub24's strong growth in FY24 was mostly driven by the company's platform segment. Funds under administration grew by 35% to $84.4 billion at the end of June. Moreover, Hub24's sizeable net inflows ranked it first for annual and quarterly inflows in the industry.
What else happened in FY24?
The financial year saw Hub24's revenue from tech solutions rise. In FY24, the smaller segment's revenue increased 5% to $70.7 million, producing an underlying EBITDA of $22.1 million (up 1% from FY23).
According to the company's presentation, 68% of tech solutions revenue came from Hub24's 'Class' offering. The 'Class' product was named self-managed superfund software provider of the year in the 2023 SMSF adviser awards.
Elsewhere, the company launched an enterprise offering of the 'myprosperity' product. Two national advice networks spanning over 1,800 financial advisers, have entered into deals with Hub24 to use the software in FY25.
Hub24's acquisition of Myprosperity was announced on 30 May last year. As shown in the chart above, the Hub24 share price has rallied an astonishing 98% since then.
What did management say?
Commenting on the FY24 result, Hub24 managing director Andrew Alcock said:
We're proud to have consolidated our position as Australia's best platform and are committed to empowering better financial futures for more Australians. As a result of our focus on delivering innovative products and solutions and customer service excellence, we've achieved industry leading and record platform net inflows and increased market share.
The latest data shows Hub24 holds ~7% market share of funds under administration (FUA). This metric has gradually increased from only 2% in March 2020.
What's ahead for Hub24?
The financial services company is targeting $115 billion to $123 billion in platform FUA (excluding PARS FUA) in FY26. At the midpoint, this would suggest ~41% growth in platform FUA over the next two financial years.
According to Alcock, the company is 'well positioned' to extend market leadership in Hub24's 'core propositions' in FY25.
The Hub24 share price is up 40.7% year-to-date.
