HUB24 (HUB) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with group revenue up 17% to $327.3 million and underlying EBITDA up 15% to $118 million, driven by strong net inflows, market growth, and industry leadership in platform, tech, and data solutions.

• Funds under administration (FUA) rose 30% to $104.7 billion, with platform FUA up 35% to $84.4 billion and record net inflows of $15.8 billion, tripling market share to 7.3% over four years.

• Maintained #1 position in platform net inflows, adviser satisfaction, and recognized as Australia's best platform.

• Completed major client migrations and Xplore Wealth integration, delivering targeted synergies.

• Advisor base penetration increased to 29%, with FUA per adviser at $19 million, up from $8 million in FY20.

Financial highlights

• Group revenue up 17% to $327.3 million; platform revenue up 21% to $252.8 million; tech solutions revenue up 5% to $70.7 million.

• Underlying EBITDA up 15% to $118 million; platform EBITDA up 21% to $103 million; UEBITDA margin at 36.1%, down 0.5% due to lower deposit spreads and acquisition costs.

• Statutory NPAT up 24% to $47.2 million; underlying NPAT up 15% to $67.8 million; underlying diluted EPS up 14% to 81.1 cents.

• Fully franked final dividend of 19.5 cents per share, total FY24 dividend 38 cents, up 17% on FY23.

• Operating cash flows of $109 million; cash balance of $88 million; share buyback of ~$12.5 million.

Outlook and guidance

• FY26 custodial/platform super FUA target range set at $115–$123 billion, up from $84.4 billion at June 2024, with net flows guidance upgraded to greater than $11 billion per annum, excluding large migrations.

• Expecting further client migrations in 1HFY25 and continued investment in technology, data, and product innovation.

• Focus on disciplined cost management, margin expansion, and leveraging group capabilities for growth.

• Operating expense growth expected in low- to mid-teens percentage, with hiring stabilizing and automation driving leverage.

• Confident in continued growth due to strong advisor sentiment, new client wins, and industry dynamics.