Harmoney (HMY) Q4 2024 TU earnings summary

Operational performance

• Stellare 2.0 drove a 50% increase in Australian new customer originations in July 2024, with all marketing channels directed to the new platform.

• 90% of decisions are now fully automated, improving speed and consistency, while arrears on Stellare 2.0 loans are 10% lower than the previous version.

• Revenue grew 15% to $123 million, with cost to income ratio improving to 24% from 28% year-on-year.

• Credit loss percentage improved to 4.0%, and acquisition costs fell by 14%.

• Cash NPAT was $0.7 million, marking the fifth consecutive half of positive cash NPAT and loan book growth.

Technology and platform update

• Stellare 2.0 leverages automation, machine learning, and AI, enabling faster, safer, and more tailored credit offers.

• The platform was developed in-house and is built on cloud-native infrastructure, enhancing development agility.

• Retirement of Stellare 1.0 resulted in a one-off $9.5 million non-cash impairment expense.

• 100% of offers are audited post-settlement, ensuring robust feedback and risk management.

Financial position and funding

• Loan book grew to $758 million, up 2% year-on-year.

• Strong funding capacity includes $30 million corporate debt facility, $20.6 million unrestricted cash, and $181 million in warehouse growth capacity from major banks.

• Asset Backed Securitisation programs are active in both Australia and New Zealand.