Wisr Limited (WZR) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the Wisr Company Update for First Half of the FY '22 Year Results. Great to have you all join us this morning. Alongside me, Anthony Nantes, CEO of Wisr; Andrew Goodwin, our CFO, who will be joining me in hosting the results call this morning. First of all, thanks to everyone for joining in this morning and for your ongoing support and of the company as we continue to grow and build what is a really exciting company. Jumping straight to the results, it's always a good place to start, I think, just framing what Wisr is setting about doing in the landscape financial services in Australia. We do have a very unique and differentiated strategy in this space. A strategy which is built on building a really core of a great digital lending platform, allowing us to build a great consumer lending business with really smart, fast-paced decisions for everyday Australians and giving them a really great alternative to the big 4 banks primarily when it comes to looking for a personal loan and potentially other consumer finance products. Sitting alongside that digital lending platform, we're also building out the financial wellness platform. And the reason for doing that is multitudes. It gives us a unique competitive advantage in the market when we're competing for a personal [ winning ] customer by having something different and something else to add alongside our personal loan product. So rather than being just a transactional consumer lender and offering only a financial moment in time, solution, but we actually have a broader way to engage customers right through their entire life cycle, meaning before they're in consideration mode for a personal loan, took on the journey with them after they've taken out a personal loan offer with a wide range of products, tools and services around financial warrants that not only is good for the customer, but over time, builds us a proprietary channel that is also really grateful for Wisr. It's a proprietary channel, which allows us to have a unique advantage in this space. Have a unique relationship with customers. Customers that primarily haven't went from us yet, that might be consideration mode and have future potential loan customers for us down the track. It's a channel which is demonstrating some superior economics to any other channel in which we operate in market. All the channels in which we are able to build the Wisr business today are very profitable channels. But our unique financial wellness platform is by far and away the most commercially attractive channel for us. That's our lowest cost of acquisition. It has some really great results in terms of customer outcomes as well. And so over time, as we build up that dual platform strategy, we really start to different ourselves in this space as a very unique offering in consumer finance in Australia. In terms of the strategy today, the digital lending platform in the first half delivered a record AUD 268 million of loan origination, which is up 84% on the prior corresponding period, which is our 22nd consecutive quarter of growth, which is worth recognizing, I think it's a great testament to the team that we have at Wisr, that we can consistently deliver that growth -- consistently that growth for 22 consecutive quarters. And as an investor, it's something that the market can rely on, on Wisr can deliver. Our first half of revenue was up 163% on the prior period to AUD 26.2 million. So a great result in terms of the revenue following through from how it's been done over the previous couple of years. Obviously, sort of a very material result in Q2 is particularly where we delivered that cash flow positive outcome, finally getting through that kind of really key milestone as a company. And all of that gets us really on track to delivering what we've put out there as a near-term target of a AUD 1 billion loan book. And so we're really well on track to delivering that result in the near term. The financial Wisr platform as well is continuing to grow at scale. It's continuing to deliver a simple return on investment for us and really demonstrating a unique and compelling offering to customers in this market. I've touched on this already. We've now written over AUD 879 million worth of loans as of 31 of December. We're approaching our AUD 1 billion with loans as we enter into this year with a significant amount of lending, significant amount of data that we now have around the personal loan customer group in Australia, which is extremely useful for us. And I'll talk a bit about what we're doing with that in a minute. AUD 136 million written in the last quarter and the loan book at AUD 565 million as we closed out the half. So we continue to grow and scale the company in a really consistent fashion. That consistent growth that we have delivered over the last few years and continue to deliver, has seen, again, a consistent growth in our revenue falling behind it, revenue is at a CAGR of about 119% over the last few years. And you see the growth there as we've delivered, as I said before, AUD 26.2 million in revenue in the first half alone on the back of delivering circa AUD 27 million in the full financial year last year. So you can see the growth that we're delivering year-on-year really stacking up as we need to grow the company. That growth really pleasingly in part of our continued strategy. Whilst we continue to grow the business exceptionally fast and delivering some really great growth results. We are doing it around a very high-quality credit business. We continue to deliver significantly high-quality credit. We continue to go after high-quality credit in market. It is our strategy to build a business that's based on very prime Australian consumer borrowers and delivering a really great scalable business with really great risk-adjusted returns as a result of that that quality customer group that we continue to go after. And it's the customer group that is uniquely drawn to Wisr, because of that differentiated strategy that we have, ability for us to talk about being more just a personal loan provider, but being a company that is focused on financial [ awareness ] that has a range of offerings that sit on side a personal loan, is an offering which is unique in market and allows us to consistently compete for and win some of the most prime borrowers in Australia when it comes to consumer finance and adds strength that we continue to build the company on. As I mentioned at the start, that revenue growth chart, which is a great chart to point to, has delivered that revenue -- the positive operating cash flow in the second quarter. You can see that the trend that we were aiming towards was heading in that direction over the last few quarters as the revenues start to really accelerate in the last several quarters. Obviously, in the first quarter, we took a very strategic decision to take a really big brand-building exercise around the Tokyo Olympics, it really was a once in a lifetime opportunity for us with 30 million Australians in lockdown across 2 weeks. it's -- it was a campaign that has been one of the most watched, one of the most watched events in Australia in television history. It's a campaign which delivered exceptional results for us and well beyond expectations for what we were looking to achieve with that campaign. We reached 16.5 million Australians to that campaign and to try and establish ourselves as a real challenger brand in market -- in a strategy in financial services is very, very hard to do. What we're able to achieve with a relatively modest spend in the period of 2 weeks around the Tokyo Olympics faster passes what could be achieved almost in any other time. It's a campaign and a strategic spend that will deliver years of benefit for us. The ability to establish our brand in market for 16.5 million Australian plus, will give us benefits for years to come as we compete and as we challenge alongside other big brands and known brands in market. Having a brand that's known is really important when it comes to trust and financial services, setting ourselves up for the next few years of growth by that very strategic growth smart spend around Tokyo Olympics will pay years of dividends and benefit for us as a company. It did obviously change some of the trajectory of our financials for that quarter. But it's a result that we're very, very pleased with. It's a spend that we would definitely make again, provides huge benefit for us. And you can see the fall in results into the second quarter as we went through the cash flow breakeven milestone.. So that all being said, one of the really nice positions again today is to really clearly say that Wisr has never been in a stronger position than it is today. We've done 22 consecutive quarters of growth, we have seen our total loan originations approaching sort of AUD 1 billion now, AUD 26.2 million in revenue in the half, along on the back of AUD 27 million to full year last year. Our loan book over AUD 565 million growing. The business is exceptionally well capitalized with a very, very strong balance sheet with AUD 75.3 million in total cash balance, including balance sheet cash, which put us in a really strong position to fund our future growth ambitions. So the combination of the strong growth that we're delivering alongside a really strong balance sheet, alongside the revenue growth and the results that we're delivering, the way we're able to take market share, sitting alongside a really unique strategy with over 551,000 profiles now on that financial wellness platform and continuing to grow, whilst also delivering consistently high-quality consumer credit, puts the company in a really, really strong position. Additionally, in the -- subsequent in the half, we actually bought IFM. We were one of the major debt investors globally actually into Wisr Warehouse replacing AOFM who've been sitting in our Warehouse for a couple of years. If you ask for probably the 2 premier debt investors in Australia. you probably asked for NAB as the domestic bank and IFM as a mezzanine investor and we have those 2, again, this talks to the quality of Wisr's business to be able to attract debt investors of that kind of quality into our business and into the debt that we're writing. We continue to lead the market in terms of Net Promoter Scores and our skew vehicle warehouse, our second warehouse was a major milestone in the half, after building that the launch and rollout of that product and utilizing our main warehouse. We actually launched a secured vehicle dedicated warehouse in the half with a AUD 225 million facility, which went live on the 11th of October, giving us a dedicated warehouse purely for skewed vehicle product. We've given the different size of dynamics of that product having a dedicated warehouse allows to rescale that product alongside our unsecured personal loan product. I'll give it to Andy now to talk through some of the key financial results.

Thank you, Anthony, and Good morning, everyone. So obviously, our key sort of financial metrics that we do publish is our cash EBITDA number. As you can see, there's exceptional improvement in that number for H1 FY '22. So obviously, the 42% improvement was delivered on the back of the operational leverage expansion which is very evident in the business. And you can see that through the 163% growth in revenue, as Anthony is spoken to, and only 54% growth in operating expenses at the same time. So it really shows that expansion taking shape. If you look at the other 2 items that sort of makeup that figure, obviously, finance costs have increased in line with our growth in loan volume and loan book size and loan write-offs. So we do obviously publish that figure in the cash EBITDA number. And what you'll note notwithstanding the increase is that it represents only 0.3% of our loan book at 31 December, which again talks to the really prime nature and quality of the book and the business that we're underwriting. Now we've also provided a diagram, lower graph below, where we've excluded the Q1 FY '22 marketing spend. Obviously, that Tokyo Olympics campaign spend that's been well documented. And what is evidenced very clearly there is obviously under that scenario, we're actually cash EBITDA positive by AUD 2 million for H1 FY '22, which would have been a 131% increase on the prior corresponding period. Obviously, that spend was made. It was very discretionary, very much one-off, and we just wanted to illustrate the shape of the business is in from a financial perspective under those different scenarios. So obviously, our P&L waterfall, so this is really illustrative again that operational leverage expansion. So those that have been following the company for a while, you'll be familiar with this chart where we compare the P&L, basically between the halves in the different categories of spend, and we split it up between sort of the core lending business and the sort of growth business or that financial wellness platform as we like to describe it. And again, what's very evident is just that core lending business just continues to go from strength to strength in terms of the profitability of that core business. Obviously, that discretionary growth OpEx, which we do continue to make in the financial wellness platform and that other sort of a very important part of the strategy. Yes, it continues to be there. But even with that spend included, we're still actually above that breakeven line, which is very encouraging to see. And obviously, in the orange box there, we've included the one-off take on the Olympics spend. Again, what we've shown here is the illustrative example of what the business looks like at a AUD 1 billion loan book. And actually, we've included a scenario beyond that because as you'll see shortly, based on different scenarios, again, not a forecast, that AUD 1 billion loan book is very much upon us in the short-term based on a number of scenarios that we show you. And we've included in that medium-term scenario as well, just to really show, I think, the strength of the business from a financial perspective are under this illustrative scenario. So if we look at December '21, obviously, the AUD 565 million loan book, what you'll notice that we're on that AUD 55 million to AUD 60 million revenue run rate based on where we exited the half. And again, the cash EBITDA is sort of AUD 0 million to AUD 5 million, so through that breakeven point as we have described. Under the AUD 1 billion loan book, we're producing AUD 100 million to AUD 120 million of revenue and AUD 30 million to AUD 40 million of cash EBITDA. So we've obviously shown the breakdown in the table on the right-hand side. They're fully within our obviously, finance cost losses and OpEx. And importantly, we have allowed for some growth in OpEx even to get to that AUD 1 billion loan book. So as you know, from FY '21, we're actually below AUD 30 million as an annual OpEx figure. And so we're well placed as we stand here today based on this illustrative example. And again, at that AUD 3 billion book, you can see the economics of the business are really quite exceptional, delivering a cash EBITDA result of AUD 120 million to AUD 140 million, again, on the back of AUD 300 million to AUD 360 million of revenue.

And as Andy's point, I think it is worth noting as it for the illustrative examples, whilst they’re in forecast per se, we have provided some clear headroom for OpEx spend and growth in OpEx as well as we continue to grow the loan book. There's some variable costs that are built into the business. So as the loan book grows, there are some variable costs that just flowing naturally through OpEx. And there's some other costs as well that we can put alongside that as we choose to grow and expand the business. over time, like building and launching new products, which gives us more growth opportunities as well. Again, following on from where we left off in the last quarter and following on some of the previous example, we just provide illustrated guide to kind of guess the timing towards that AUD 1 billion loan book based on a range of scenarios that might play out this year. So we can exit long book of AUD 565 million as of the end of December. If one was to model out the growth of the business going forward based on a scenario of 0% growth quarter-on-quarter, 5% growth, 10% growth or 15% growth quarter-on-quarter, it just shows the timing towards that AUD 1 billion loan book. And so it's -- these different scenarios provide a time that loan book, based on the modeling that's provided here. It is between sort of the end of this calendar year and mid next year based on the growth rates that the company achieves going forward. So it's just what we're providing as an illustrative guide just to help them kind of understand the tough distance between where we are today and as we achieve some of these near-term targets based on a range of different scenarios. Andy, I might hand back to you again, just to talk about the funding platform.

Yes, absolutely. Thanks Anthony. So obviously, the funding platform is in fantastic shape. So we have over AUD 750 million in funding facilities available. That's across obviously, that sort of small, rather a material headco line we put in place before the last capital raise. But importantly, the 3 key warehouses we have in place, obviously, the orange box -- sorry, the yellow box is our first securitization deal, which we did last year. The pink box is our SBL Auto warehouse and the [ Tier ] box there is our original warehouse, the personal loan warehouse. And as we've always done, we grow our facilities in line with our origination growth. So as at 31 December, we have over AUD 200 million of capacity and headroom available, which again has the business in great shape in terms of the trajectory that it's on. And as we call out, we do expect a return to the ABS and securitization markets in calendar '22 across both warehouses personal loans and auto loans. And as we would know, the effect of those securitization deals is it recycles the existing capacity available in the warehouses. So once you do the term deals, you essentially have that capacity available again to build up as you continue to originate and so actually, the funding structures we have in place today are more than adequate to see us through to AUD 1 billion and beyond. The other thing that Anthony obviously rightly called out was that IFM pleasingly joined the investor group as a mezzanine investor in warehouse one alongside MA Financial Group, who are the existing mezzanine investor in warehouse one. So here are the funding platform is in fantastic shape. So what we've described here, obviously, it's very topical at the moment, the environment that we're in, although it obviously hasn't happened yet in Australia, there is expectation that the rates will rise on the back of the potentially the inflation environment that we're in. And certainly, as we look offshore, that's what we're seeing. So what we're trying to do is address that. And I appreciate there's a bit of detail on this slide, but we've very much taken a view of trying to a [ one-on-one ] approach, wanted a better word, just to describe exactly what our situation looks like in this potential environment as it plays out. So if we look at the current scenario, so Wisr lends fixed and borrowers fixed from our funding partners. The only potential floating exposure we have to interest rates is in what's called the BBSW or 30-day bank build swap rate. So our funding costs are a margin over that rate. Again, that margin is fixed. So what we've actually done since the inception of the warehouses 2 years ago or over 2 years ago now is that we've hedged that BBSW. So as we stand here today as our book, the AUD 565 million we have at 31 December, regardless of what BBSW rates do from here on in, we actually have no exposure, because we're hedged over the next 4 years or the life of those books to the full extent. So 100% of that book is hedged. And so anyone sort of running numbers on, as I said, on the book today, any movement in interest rates will have no impact. And we're just graphically represented -- diagrammatically represented what that hedging arrangement looks like. So we're paying a fixed BBSW on all of our funding facilities, which, again, does what hedgings intended to do and it obviously mitigates the potential risk of those movements in rates. And I mean, the other pleasing thing obviously, is that if you look at our balance sheet, you'll see those hedges we have in place around AUD 5 million in the money. So obviously, that's the result of that program we've had in place for 2 years now. Again, to protect both Wisr and our funders from any movements in rates, which, again, potentially may happen this year. If we look at a future scenario. So what we've done here is provide an illustrative example of our securitization deals. So this is the ABS deal that we did last year. Obviously, a lot of this information is public. And so we've represented in that first column, the situation or the NIM based on the current BBSW level, the hedge BBSW level that we got. And so what you'll see there is obviously the gross yield of 11.7% less our fixed interest margin expense, less the BBSW, lesser forecast loan book loss rate, which by the way were well below as we currently stand here today, provides a new of 8.3%, which is obviously an extremely healthy NIM. We then showed scenarios around, okay, what if BBSW goes up by 50 basis points or 100 basis points, and you can see that we're still making a very healthy NIM and a business that will be functioning in a very positive way under those sorts of scenarios. Notwithstanding that, we do have levers in place that would allow us to respond to rates and rates if we so chose to do so. And they would include passing through those rate increases to our customers and also potentially increase in the gross yield on our book based on our credit risk appetite and the business that we choose to rise. So yes, the business is well placed as we head into this potentially evolving interest rate environment.

Thanks Andrew and I think it just reinforces the prudent major, which we mentioned capital at Wisr, the prudent in which we take to managing the entire book and looking several years out in advanced, we've consistently from day 1 built Wisr around a long-term strategy rather than going after short-term wins. We're building a business for the long-term that's going to be a really significant and impactful business in the Australian market. And everything we put in place from our hedging structures and debt structures through our overall strategy is based around the long-term outcome that sees us building a really significant company. As we've gone about doing that over the last few years, we are approaching now a point of adding almost AUD 1 billion in loans written as we head into this calendar year. And with that amount of data in place of the proprietary data of our own unique data set, we're very excited to announce that as at the start of February, we launched our Wisr Score platform, which is a proprietary credit score platform that we use to make smarter, faster and ultimately, a more profitable decisions around the way we lend to market. We have up until February, been relying on a range of external data primarily to make credit decisions. We've been running this platform and algorithms really advanced data analytics over the last couple of years in parallel with our current data sets and has been consistently outperforming and all the more showed the outperformance of this proprietary platform over external data. And so we're now in a really great place as we head into this year with the balance sheet that we have, with the growth that we have since we launched this, so this went live subsequent to the end of the half in February of this year. It will provide a whole range of significant material benefit to the company. It will provide faster decisions for customers. It allows us to actually scale the business significantly faster as well. We've put more automation. It will provide ultimately for shareholders and then for the company, actually a better risk-adjusted portfolio, ultimately making the business more profitable by making better decisions around consumer lending. It's only through the combination of proprietary data that we've been already built over the last AUD 1 billion or so as we approach that number of consumer loans that we've written, plus other proprietary data that we've now to pull in through different platforms that we have that allowed us to build this particular Wisr Score platform out and put it out into our business as of February and will really be the engine around our growth as we head into this calendar year in the next few years. It's a platform which we'll continue to learn and iterate and get better over time and more data consumes the better gets, we've seen that over the last couple of years as we have set it more data and fill out to consume more data over the last couple of years as we've built this platform out in the preparation for launch, how it's been able to deliver a scenario for us that will actually allow us to have a better risk-adjusted portfolio to write more business, to grow the business faster and ultimately, write better credit and more profitable credit, which is a great place to be in and so we're very excited to announce this material change to market. Seeing alongside that important platform, as I talked about before, is our unique strategy around our financial wellness platform. We have over 550,000 consumer profiles now on that platform. And as I talked about earlier compared to the other channels that we plan, and there's 3 major channel categories which we talk about, we have a significant presence in the broker channel. We have fixed over the costs for acquiring a personal loan remain quite fixed, and it's very hard to achieve a degree of competitive advantage or indeed, as you scale as a company to actually drive those costs down in any material way. We have our direct channel strategy where we acquire customers is a direct B2C consumer play, we were in market, winning customers at different consumer distribution points. And then we have our proprietary platform. And you can see that in terms of cost of acquisition, which as you scale a lending company and as we sort out for the operational leverage starts to be demonstrated, as you scale a lending business, most of the costs end up becoming relatively flat. And the major cost item for a -- particularly for a non-bank lender for a challenger lender is customer acquisition. It's the #1 cost bucket that as you continue to scale with the company continues to grow with you. It's the final part of our strategy, which makes us unique, which is when we look at the history of non-bank lenders as they've scaled their companies, as they've gotten bigger, they have to pay more money to acquire more customers consistently and kind of go off that [ treadmill of ] consistently paying more money that would require more customers to continue to grow. And so our unique strategy has us very, very well placed to actually break that cycle. We're demonstrating the fact that actually, as we scale, we have a channel and as that channel continues to scale that actually significantly reduces our cost to acquire customers. And not to consistently reduce the cost to acquire customers actually is a really long tail of value that can deliver for us as well. So we're price channel that's very defendable, because there is a really long tail of connection with the customer and allows us to actually really give a significant advantage as we scale the company over the next few years. We talk about the data we've used in building up the Wisr Score and actually on the financial wellness platform, the use of data becomes just as important. A customer that is using both the products or the variety of products on our financial wellness platform. A customer that's on financial wellness platform will have a couple of things in place. They will have KYC themselves. So we'll have KYC data, so you know your customers who will ID that customer. So we know they're a real person, just something like a driver's license or a Medicare card or a passport. So we'll ID that customer. So we know they're a real person and we can verify that. We'll see their positive credit reporting data, so we'll see all their current open liabilities, the current balances on those liabilities, their payment history on those liabilities. So we've got to see things like if they have a personal loan open at the moment with another provider or they have a credit card debt with another provider, some of the sort of consumer finance line item with another provider. We can also see they're making regular payments to that consumer loan they might have out with someone else, and through the transaction data, we're going to see things like the income and expenditure and other material items that we'd be using to feed into our particular -- into our Wisr Score. So you can see how the financial wellness platform was to deliver a significant benefit for customers in their own right and attracts customers for the benefits it provides them, actually provides a range of very clever benefits for Wisr through the data that we have and our ability to then actually offer a very personalized offerings as we scale this platform in the next couple of years and use this data in very, very clever ways to do something quite unique in this space in Australia. As I said, there's a really long tail of conversion we would see. Conversion that happens more than 12 months after people join this platform. This is a conversion to a loan product for us, which is the way we drive revenue at the moment. And so you can see, first of all, just in the first month, we see a lot of conversion. What that tells us is that the financial wellness platform operates as a competitive advantage for us in market. So when a customer is in consideration mode and is thinking about taking out a personal loan, they're coming to us and they might come via their financial wellness platform as a competitor advantage when that consideration mode when they're shopping around for a consumer finance product. We also see actually for the first full 12 months of someone that isn't quite ready to take our consumer loan product yet. But maybe they're a top of final, they're starting to think about it. And so there's something about their finances, so they come into our financial wellness platform that we have this first full year where we see a significant amount of conversion coming through. And then beyond that, even after 12 months, these are customers who 12 months ago when they first joined us on our wellness platform probably not thinking about taking up a consumer finance product. But with some other reason and 12 months down the track, they now in market for a personal loan, they've already built a relationship with us. They know us. We know their data, and it's very easy for us to potentially convert them across. And so you can see the net benefit for customers and net benefit for us as a business through that cycle. Talking about the benefit of customers that we've published previously, a range of different data sets around how we're actually helping customers aligned to our purpose around financial wellness -- with the financial wellness platform. This starts here, we're providing just talks to for actual loan customers. So the customers to actually take out loans with Wisr. We have a portion of those who take up our financial wellness platform offering and some of the direct customers won't come to us just for a loan, but seen a proportion actually take our financial wellness platform as well we did push that quite heavily. And what you can see here to the green chart is we actually see through the financial wellness platform, a high percentage of customers paying down their loans a little bit faster. So we actually are genuinely helping customers pay off their loans quicker through the financial wellness platform offering. Again, why that's material? It allows us to talk about this in market -- it allows a competitive advantage when competing for consumers mine share in consideration mode. As the only offering in Australia that can give you a personal order and can demonstrate we're actually generally going to help you pay that loan faster, if you take a loan up with us than with someone else in market. So it's a fantastic -- an environment which is significantly competitive where it's very hard to differentiate around the product itself borrowing AUD 20,000 or AUD 25,000 is the ultimate commodity, AUD 25,000 from us or from CBA Bank or from NAV or ANZ or where it is, might else one, is the same AUD 25,000 ultimately. So differentiating on the product itself can be challenging. It's differentiating around this type of offering in market becomes very, very healthy, differentiating around brand, around purpose, around showing you're actually able to [ go and doing to ] someone when taking out a personal line that attracts really high-quality prime borrowers to your platform. So it's a really great data we're able to share. We won't stop there. There's a lot more innovation to come from us. We think we are doing some genuinely unique and different in this space. It's built on a core of really great lending engine. We are going to do to innovate around financial wellness around the platform and around offerings that we have in market as we continue to build and scale the business. Again, we are building a business for the long term. Yes, there's a significant opportunity in the Australian financial landscape. And particularly over the next few years, as the financial landscape evolves, there is a really significant opportunity for a business like Wisr to really ever become something exceptionally material and impactful. And so we are going after a real opportunity in this space. We're doing it from a really strong position, and we'll continue to relate towards that, that longer term goal. So to sort of wrap up the call today, and I'll turn to questions in a minute. But as I said before, it's a great position for the company to be. The reality in Wisr has never been in a strong position than it is today. We're building strong and safe growth on the back of 20 consecutive quarters of volume growth. Half year revenue up 163% -- over AUD 26 million for the half is on a run rate in that AUD 50 million to AUD 60 million range for this year as we exit the half, with a loan book that's over AUD 0.5 billion in a clear trajectory towards AUD 1 billion over the next period. Not only doing that, delivering that strong safe growth, doing it with a really quality loan book, which is really well positioned. That's big for back global and Tier 1 credit fund investors and is delivering tremendous results. That's prudently managed, that's hedged out to manage our exposure towards interest rate changes for the next couple of years that puts again the business in a very, very strong position. We've delivered a positive operating cash flow and EBITDA outcome in the quarter. And at the same time, we're exceptionally well capitalized. So the business is in a really strong position, not just for today, but to really fund the future growth aspirations that we have as we head towards to build our loan book and beyond. The business has a really strong base of capital available to really fund that growth for that sort of stable future. And all of that put together in a market which is streaming with opportunity around consumer finance in Australia, we are building something that is generally differently unique. There's a really huge opportunity to build the company. We're going about doing something for the long-term, doing it with the next strategy, which will separate us as we grow and scale the company over the next couple of years with an ability to attract and retain customers of really high quality at a lower cost of acquisition than any of our competitors and drive a significantly better margin outcome and profitable outcome for our shareholders over the medium to long term. Thanks very much for joining today. I'll just turn to take a couple of questions.

The first question I'd note is just around the rise in interest rate environment. I think we've answered that already in the presentation. So I'll skip through that. There's a question on what the proportion of when [ retentions ] are fueled by returning customers. We don't report that particular stat. What I would say, though, is that in our current approach, it's not a huge part of our strategy, recycling consumer finance back to the same customer. We have a strategy around really high-quality prime borrowers. And Australia says actually consumer finance product like a personal loan is a really great product. It's a really important product at a certain time. But it's also appropriate we'd like to see our customers use and pay off over time and actually recycle to finance back to that same customer over periods of time. The data tells us from our players and global players to go similar strategies at those loan books are going to become challenged very quickly. If someone needs to keep continuing tap consumer finance to manage their -- the day they spend. There's someone who's like we potentially end up in trouble, so it's not a strategy that we particularly go after. We're really focused on kind of high-quality borrowers we're going to borrow from us to repay that loan through its life cycle, and we focus on making sure that those volumes are overpaid. There's a question around the data around kind of our approval rates and total credit applications. Again, we don't polish that data per se, the proprietary knowledge of that data. But what I can say is one of the important material announcement we made is contraction of the Wisr Score. One of the modeling, [ one of the turning parts of ] the modeling of the Wisr score that we've probably out over the last couple of years has been that actually we will improve our conversion rate. So we will be able to write more business with the same amount of credit applications without adjusting our risk targets. So given the same risk targets, we're actually going to make more approvals inside the same risk bandings and with the same risk appetite that we currently write. So it's going to make us make smarter decisions, better decisions and ultimately, to that question, it's going to make us a more profitable company by being able to say yes more often, which allows us without taking on significantly more risk, and that makes us a more profitable business, reduce our cost of acquisition makes us much more competitive in market. So a very exciting announcement. There's a question here around what the quarter-on-quarter growth rate is now? You can look at the historical numbers for the quarter-on-quarter growth rate depending on over what period you take it as an average you get some different answers. So I think you can refer to the data there for that one and you can pain out on the period you're taking, you take different average based on different quarters. As we get bigger, obviously, some seasonality will come into some of the growth rates. That's to be expected. There'll be particular quarters, which will be bigger than others. Now that we're at the size and scale that we are. We'll see some of that seasonality impact also based on our product mix as well as that scales out. I think these are key questions, that I can see here always happy to engage with investors at any point in time. So if you do have any questions that we have not answered, we can talk to you about them at any point in time which is through [email protected] and we're happy to address any questions you might have individually at any point in time if we haven't had time to get to your questions today. Thank you very much for joining us this morning. The company is in a very favorable position. It's in a really strong position. And I think really exciting, we have the option going to build something really, really big here. That's the goal that we're going after. We have put ourselves in a position to go and do it now. And as we execute for the next few years, we're going to hopefully deliver some sort of the great returns for our consumers, for our shareholders and for all the stakeholders involved in the company. Thanks again for your time this morning, and appreciate your -- getting with us at Wisr.