Beforepay Group (B4P) H2 2024 earnings summary

Executive summary

• Achieved a turnaround to a net profit before tax of $3.9m in FY24, up from a $6.6m loss in FY23, and EBITDA of $8.5m.

• Net transaction margin rose 66% to $19.5m, with pay advances totaling $710m, up 13% year-over-year.

• Active users reached 240,254 as of June 30, 2024, with continued growth to 244,193 by July 2024.

• Expanded into new business lines with Carrington Labs, securing two non-binding international LOIs in Q4 FY24.

• Operating expenses decreased 19% to $15.1m, supporting improved profitability.

Financial highlights

• Revenue for FY24 was $35.3m, up 15% year-over-year, with EBITDA (excluding significant items) at $8.5m.

• Net defaults improved to 1.4% of pay advances plus fees, down from 2.1% in FY23.

• Average advance per user grew 4% to $382.

• Cash position at year-end was $19.2m, with equity of $30.5m, up from $26.8m in June 2023.

• Direct service costs per pay advance fell to $1.09 in H2 FY24, representing 0.2% of pay advances.

Outlook and guidance

• Preparing to launch a new loan product in FY25, enabled by a newly obtained Australian Credit Licence.

• Plans to build on user growth, release an updated risk-scoring model, and maintain cost discipline.

• Continued focus on international expansion through Carrington Labs.

• New personal loan product platform completed and entering testing phase.

• Carrington Labs to sign additional LOIs and go live with first clients.