B4P - Beforepay Group

[System]

Beforepay is a provider of Pay on Demand services in Australia. Beforepay delivers its services via both mobile and web-based applications which syncs in with its customers’ bank accounts, and enables its customers access to a portion of their next pay on demand, make repayments with a degree of flexibility and get access to a suite of budgeting and financial awareness tools. Beforepay’s applications are underpinned by a proprietary technology platform and credit engine

Beforepay generates its revenue through customer fees. In exchange for providing its customers access to a portion of their Pay on Demand, Beforepay charges a fixed fee equivalent to 5% of the Cash Out. Beforepay does not charge its customers interest or late fees.

It is anticipated that B4P will list on the ASX during January 2022.

Download Beforepay to borrow up to $2000 today!

Download Beforepay to track your spending, plan your budget and access up to $2000 today. No interest or hidden costs, just a fixed 5% fee!

www.beforepay.com.au

 

[Dona Ferentes]

Listing date	17 January 2022 #
Contact details	https://www.beforepay.com.au
Principal Activities	Beforepay operates in the Pay on Demand industry. Pay on Demand is a relatively new concept, however it appears attractive to potential customers, and has been experiencing rapid growth as customers seek a more flexible and transparent way to manage their personal finances. Companies operating in the Pay on Demand sector provide support to individuals to manage their cashflow by providing rapid access to a proportion of their upcoming pay which can be used for any purpose.
GICS industry group	TBA
Issue Price	AUD 3.41
Issue Type	Ordinary Fully Paid Shares
Security code	B4P
Capital to be Raised	$35,000,000
Expected offer close date	16 December 2021
Underwriter	E&P Corporate Advisory Pty Ltd and Shaw and Partners Limited (Joint underwriters/Lead Managers).

 

[frugal.rock]

Beforepay charges a fixed fee equivalent to 5% of the Cash Out. Beforepay does not charge its customers interest or late fees.

And I thought $20 per $1000 cash advance fees on credit cards was poison.... no interest or late fees?
So if I don't pay them back for 10 years, would I be in the clear? ?

 

[Dona Ferentes]

And I thought $20 per $1000 cash advance fees on credit cards was poison.... no interest or late fees?
So if I don't pay them back for 10 years, would I be in the clear?

I suspect the small print sees you signing your mother over

B4P opened at $2.50 and that was generous; got to $1.905 and now tracking under $2.00. A 40+% drop

 

[frugal.rock]

I suspect the small print sees you signing your mother over

I'd gladly hand over the old man?
?

 

[wayneL]

Whatever happened to just buy what you can afford to pay for?

I don't know maybe I'm just old fashioned.

 

[Dona Ferentes]

It's been downhill since listing

A friend bought into this; not sure when. He held Afterpay before. I don't see the attraction. Maybe there's a future.


Quarterly Activities and Appendix 4C Cash Flow Report (Unaudited).

Beforepay delivers continued strong margins, reduced operating expenses, significantly reduced overall losses, lower customer acquisition costs, and very strong cash position in Q3 FY23.

Beforepay continues improvement across key metrics in Q3 FY23. Highlights include:
● Pay advances of $161.9m, up 84% from Q3 FY22 (year-on-year) and down 2% on Q2 FY23 (quarter-on-quarter) due to a seasonally higher Q2 FY23 as well as limit-management activity.
● Net transaction margin was $2.59m, up from $1.82m or 42% QoQ and up 148% YoY from $1.05m in Q3 FY22. The quarter result was driven by reduced net defaults from the previous quarter.
● Customer acquisition cost declined 30% QoQ to $32, while operating expenses declined14% QoQ to $4.17m.
● Underlying EBTDA loss decreased to ($1.57m), down 48% from ($3.01m) in Q2 FY23 and down 34% YoY, driven by the increase in NTM and reduced operating expenses.
● Balance-sheet strength with cash on hand increasing by 33% or $6.3m to $25.0m as at 31 March 2023. Beforepay continues to carry no debt at the operating-company level, only debt financing receivables.

Beforepay CEO Jamie Twiss said,

"With an EBTDA loss of $1.6m for the quarter and $25m in available cash, Beforepay is extremely well-positioned for the future, and closer than ever to profitability.

"Our continued user and transaction growth even as we keep costs tightly controlled show that Beforepay is executing well on our strategy.”

 

[Dona Ferentes]

● Beforepay remains committed to providing an ethical, customer-friendly product to help working Australians manage temporary cash-flow challenges.
● Our product advances people small sums of money (Q3 FY23 average of $351) against their future wages over short periods of time, which helps them get through short-term challenges whilst not living beyond their means. Beforepay makes ongoing enhancements to customers’ eligibility criteria and risk assessments.
● Our fee model is simple, transparent, and affordable, and gives our customers total control,charging only a small 5% transaction fee, zero interest, and never any late fees.
● If a customer does not pay back within the required time, the only penalty is that the service is suspended.
● Beforepay’s service remains well regarded by customers, with an average 4.8-star rating (out of 5) across the Google Play Store and Apple App Store.

and some socio-economics
Our customers
● During March 2023, 71% of our customers were in full-time employment, 14% were part-time, 12% were in casual employment, and 3% were other.
● The average annual individual customer gross income was $58,960 during March 2023 (counting only the main source of income). This is compared to the ABS's national median income of $63,000 (as of August 2022)7.
● The four main employment industries for our customers were construction at 13%, healthcare and social services at 11%, retail trade at 11% and hospitality and restaurant services at 10%.

 

[Dona Ferentes]

Trading Update:

Highlights
● Beforepay surpasses $1 billion in cumulative (!) pay advances since inception in 2019.
● Beforepay has now registered1 over one million users for its digital pay advance service.
● Strong growth continues with cumulative pay advances of $628 million in FY23, up92% on FY22 (year-on-year or YoY; unaudited).
● Beforepay named Ethical Lender of the Year 2023 in the global Pan Finance Awards.

-- paying the piper?

 

[Dona Ferentes]

Quarterly was well received . Am wondering if current credit cycle state is a plus or not?

.
Key Q1 FY24 Highlights:
• Beforepay achieved a net profit before tax of $1.64m and an EBITDA of $2.61m. This is the company’s first quarterly net profit.
• Advances of $177.3m, up 27% on Q1 FY23 (year-on-year or YoY) and up 9% on Q4 FY23 (or QoQ).
• Net defaults declined to 0.9%, an improvement from 1.6% in Q1 FY23. This was driven by improvements to the risk model and limit management, continued strong recoveries, seasonal effects, and a writeback of Q4 FY23 expected loss provisions in Q1 FY24. As previously noted, Beforepay’s business is seasonal, and the first quarter generally shows the best default outcomes of any quarter in the year.
• Net transaction margin was $5.63m, up from $4.09m or 38% QoQ and up 74% YoY from $3.23m in Q1 FY23. This result was driven by growth in advance volume and the lower level of defaults.
• Customer acquisition cost of new users declined 62% YoY to $27.
• Disciplined cost management, with operating expenses down 29% YoY and 10% QoQ, to $3.95m.
• Strong balance sheet with cash on hand of $17.2m and an equity position of $28.7m. Beforepay continues to carry no debt at the operating-company level, only debt that finances receivables.
• Beforepay announced on 18 October 2023 that it has secured a new 3-year, $55m debt facility with Balmain Group and Longreach Credit Investors to facilitate future lending growth.
• A second ethical-lending award, 2023 Ethical Lender of the Year, in the Wealth & Finance International FinTech Awards.

 

[Dona Ferentes]

It's been downhill since listing
A friend bought into this; not sure when. He held Afterpay before. I don't see the attraction. Maybe there's a future.

He's still in. The latest Q came out a week ago, so there's some enthusiasm (from a low level)

.
DNH

 

[Dona Ferentes]

57c , up 12 per cent

Beforepay achieved profitability and significant improvement across key metrics in H1 FY24.

Highlights include:
• Beforepay achieved an audited H1 FY24 net profit before tax (NPBT) of $2.2m and earnings before interest, tax, depreciation, amortisation of $4.2m (unaudited).
• Advances of $358.6m, up 18% on H1 FY23 (YoY).
• Net defaults % improved to 1.3%, down by almost half from 2.3% in H1 FY23.
• Beforepay revenue increased by 21% YoY to $17.6m from $14.6m in H1 FY23.
• Net transaction margin (NTM) of $10.1m, up 99% YoY from $5.1m in H1 FY23, driven by growth in advance volume and the lower level of defaults.
• Customer acquisition cost (CAC) of new users declined 48% YoY to $31.
• Operating expenses (marketing and overheads) declined 27% YoY on H1 FY23, to $7.7m.
• Continued balance sheet strength with unrestricted cash on hand of $18.9m and an equity position of $29.7m. Beforepay continues to carry no debt at the operating-company level, only debt to finance receivables.
• We intend to launch a new, separately branded business line to provide the Company’s lending technology and AI-powered risk models to partners such as offshore banks. The Company also intends to launch new lending products with larger maximum limits and longer durations.
• As previously announced, Beforepay has signed a new 3-year receivables debt facility agreement for $55.0m with Balmain Group and Longreach Credit Investors (each defined below) as lenders, to extend and expand the existing debt facility and to support continued growth in our loan book.
• Beforepay was awarded both the Ethical Lender of the Year 2023 by Wealth and Finance International and the Best App-Based Lending Company 2023 - Australia in the APAC Business Awards 2023

 

[Dona Ferentes]

has been doing well since the Quarterly came out late July.

Was 60c then and hit 80c today, close to 12 month high.

 

[Dona Ferentes]

a good Q and it's off n running

Cash profit of $2.5m achieved with record volumes, record margins, and accelerating growth.

“I’m extremely pleased to be delivering this strong result,showing faster growth, record margins, extremely strong credit performance, and our fifth consecutive quarter of profitability.”

- Beforepay Group CEO, Jamie Twiss