AUS
NZ
UK
CA
USA
IND
The Hub24 Ltd (ASX:HUB) share price is facing a decline this morning, down 2% to AU$49.86, despite the company announcing another record-breaking full-year result for FY24. This drop in share value comes as the broader financial sector shows a slight gain of 0.38%.
Key Highlights from FY24
- For the 12 months ending June 30, 2024, Hub24 reported impressive financial metrics:
- The company achieved AU$15.8 billion in net inflows, marking a substantial 62% increase compared to FY23.
- Revenue grew by 17% to AU$327.3 million.
- Underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 15% to AU$118 million.
- NPAT reached a record AU$47.2 million, up 24% year-on-year.
- A fully franked final dividend of 19.5 cents per share was declared.
Despite these robust results, Hub24’s share price has slipped. The financial services company’s strong growth was largely attributed to its platform segment, which saw funds under administration increase by 35% to AU$ 84.4 billion by the end of June. Hub24's record net inflows placed it at the top of the industry for both annual and quarterly inflows.
Additional Developments in FY24
The year also saw positive strides in Hub24’s tech solutions segment. Revenue from this smaller segment increased by 5% to AU$70.7 million, with an underlying EBITDA of AU$22.1 million, up 1% from FY23. Notably, 68% of the tech solutions revenue was derived from Hub24’s 'Class' offering, which was recognised as the self-managed superannuation fund (SMSF) software provider of the year in the 2023 SMSF Adviser Awards.
Furthermore, Hub24 expanded its product offerings with the launch of an enterprise version of its 'myprosperity' product. The company secured agreements with two national advice networks, representing over 1,800 financial advisers, to integrate the software into their operations in FY25.
The dip in Hub24’s share price, despite the impressive performance, suggests that investors may have had higher expectations or are concerned about other factors not fully reflected in the results. As the company continues to grow and expand its offerings, investor sentiment and market conditions will be crucial in determining future stock performance.
