HUB24 (HUB) Investor Day 2024 summary

Strategic growth drivers and market expansion

• Six key growth factors include expanding addressable markets, advisor network growth, increased FUA per advisor, deepening relationships, product breadth, and low outflows, all underpinned by ongoing investment in technology and service excellence.

• Expansion into high-net-worth, SMSF, and non-traditional segments is accelerating, with tailored solutions for both wholesale and retail clients, including new products like Discover and SMSF Access 2.0.

• Intergenerational wealth transfer and broader household engagement are being targeted through product innovation and advisor support, capturing flows from industry funds and master trusts.

• Distribution agreements and advisor penetration continue to grow, with 44 new agreements and 195 net new advisors in the latest quarter, supporting robust FUA growth.

• Addressable market extends beyond platforms to include SMSF, corporate compliance, and non-custody assets, with access to 76% of the adviser market.

Technology, innovation, and operational efficiency

• Significant investment in automation, robotics, and AI is driving productivity, reducing cost to serve, and enabling scalable growth, with initiatives like Virtual Mailroom and advanced consent processes.

• Proprietary machine learning models and curated data sets, built over 15+ years, provide a competitive edge and are integrated across platforms, enhancing service quality and compliance.

• Integration of acquired businesses (Class, NowInfinity, myprosperity) is focused on seamless user experience rather than unified code bases, leveraging group assets for cross-segment solutions.

• Enhanced client portals and digital tools (e.g., advice fee consent, virtual mail room) improve engagement, security, and productivity, with high adoption rates and positive feedback.

• Ongoing innovation is expected to further expand margins and operational leverage, with early-stage AI and language model deployments already reducing average handle times and supporting future growth.

Financial performance and capital management

• Platform business delivers nearly 80% of group revenue, with 40–50% CAGR in FUA, revenue, and EBITDA over four years; technology solutions (Class, NowInfinity) are also outperforming their sectors.

• Platform FUA reached $92b as of September 2024, with total FUA at $113b and gross inflows of $26b in FY24.

• FUA guidance for FY26 is AUD 115–123 billion, supported by organic net inflows of over AUD 11 billion per year, large client migrations, and stable market growth.

• Strong balance sheet and cash conversion (>90%) enable ongoing investment, dividend growth (53% CAGR), and flexibility for bolt-on acquisitions and regulatory changes.

• Group revenue 4-year CAGR of 42% and UEBITDA CAGR of 47%, with expanding margins and disciplined cost management.