At time of writing, the Wisr Ltd [ASX:WZR] share price is up more than 4% trading at 23.5 cents.
The WZR share price is threatening to break out of a range that dates back to September:
Third time lucky to puncture the 24-cent mark? We look at the latest figures out of Wisr and its prospects going forward.
Highlights from latest announcement out of WZR
Here they are:
‘● New loan originations up: record growth of $97.8m, a 151% increase on Q3FY20 ($38.9m) and a 17% increase on Q2FY21 ($83.8m)
‘● Total loan originations now $488.3m as at 31 March 2021
‘● Secured vehicle loan product delivering strong results in limited channels, with $21.9m or 22.5% of the $97.8m
‘● Wisr Warehouse loan funding facility was upsized to $350m in Q3FY21. Further Wisr Warehouse expansion to meet loan funding requirements will be announced in Q4FY21
‘● Record Q3FY21 average credit score of 771 (Q2FY21 757), reinforcing Wisr’s ability to attract Australia’s most creditworthy customers and the opportunity to take more market share’
So, more strong momentum.
But Wisr has released a string of strong numbers before leading to spikes on multiple occasions only for the WZR share price to trade down again.
The trick may be to take a closer look at how Wisr’s financials are tracking and its place in the broader fintech landscape.
Outlook for WZR share price
Wisr’s half-yearly report released late February is worth a look.
Revenue up a significant 354% on the half-yearly dated 31 December 2019.
But still, just below $10 million.
A loss of $10 million as well, down a little over 25%.
For the market to really sit up and take notice, there may need to be more progress towards profitability.
Wisr is a fintech, but no buy now, pay later (BNPL) company, so growth metrics could matter less.
Cash of $27 mil for that half yearly too.
Meaning it’s a bit of a race against time for Wisr — hence the roller coaster ride on the chart.
It’s going out on a limb, but if Wisr is serious about increasing its Arbor stake to 45% (a European fintech with far greater addressable market than Wisr), then a capital raise could be on the cards in the next 4–8 months.
Small-cap investors frequently bemoan capital raises because they want profitability with no more shares added.
This is short-sighted in my view, if you have strong convictions about a company.
Small-cap fintechs frequently release strong growth numbers and then capital raise into a rise — I’ve seen it enough times.
That may be what happens to Wisr in the aforementioned time frame.
If you feel like you’ve missed the fintech boat, I’ve got good news.
Our three small-cap fintechs report profiles three under-the-radar ASX-listed stocks worth learning more about.
It’s a great read and starting point for further research.
You can download that right here.
For Money Morning