Beforepay Q3 FY24 Quarterly Activities and Appendix 4C Cash Flow Report

Beforepay Group Limited (Beforepay or the Company) (ASX: $B4P) has released its Appendix 4C for the quarter ended 31 March 2024 (Q3 FY24). The company achieved a net profit before tax of $0.3m and an EBITDA of $1.6m, marking its third consecutive quarterly unaudited net profit. Advances reached $172.3m, up 6% year-on-year, with net defaults improving to 1.6% from 2.6% in Q3 FY23 despite the increase in advances. The net transaction margin stood at $4.2m, up 62% year-on-year from $2.6m in Q3 FY23, driven by growth in advance volume and lower defaults. Operating expenses declined 10% year-on-year and 1% quarter-on-quarter to $3.7m, reflecting continued tight cost control. Beforepay also launched Carrington Labs, a new business-to-business offering, and won two awards in the APAC Insider Australia Enterprise Awards 2024.

Executive Commentary on Q3 FY24 Performance

Beforepay CEO, Jamie Twiss said, 'I'm pleased to be announcing our third consecutive quarterly profit, driven by strong net transaction margin outcomes, lower default outcomes, and tightly controlled costs. This result demonstrates that we continue to execute on our strategy in helping more customers access safe and affordable financial products as we pursue additional growth opportunities.'

Summary of Q3 FY24 Performance and Outlook

Beforepay's Q3 FY24 performance reflects a positive trend with consecutive quarterly profits, growth in advances, improved net defaults, and strong net transaction margin outcomes. The company's launch of Carrington Labs and recognition in the APAC Insider Australia Enterprise Awards 2024 further highlight its commitment to innovation and ethical lending. Looking ahead, management expects Q4 FY24 to follow normal seasonal trends, and the company aims to grow its existing Australian pay advance business while exploring opportunities for additional lending products. Beforepay remains focused on providing ethical, transparent, and customer-friendly financial products to help working Australians manage short-term cash-flow challenges. The company's strong balance sheet with no debt at the operating-company level provides a solid foundation for pursuing its growth strategy and delivering value to its customers.