PEXA revenue jumps 16 per cent in first half of financial year

Online conveyancer PEXA has seen revenue jump 16 per cent over the first half of the 2024 financial year, thanks to a focus on executing its core strategy.

The company saw its revenues increase to 163.3 million, up from 140.9 million over the same period last year.

However, they went into the red for its interim results, posting a statutory net loss after tax of $4.6 million, (down from $4 million profit last year) after the company acquired Smoove as part of UK expansion plans.

PEXA’s operating EBITDA was $58.8 million, a 10 per cent increase on a pro forma basis when accounting for its Smoove acquisition.

They also reaffirmed its FY24 guidance for an operating EBITDA margin of 35 per cent.

PEXA Group Managing Director and Chief Executive Officer, Glenn King, said across the group, the results represent the discipline they had brought to executing their strategy.

“This includes improving the efficiency of our business through our Productivity Enhancement Program and beginning to embed our capital management framework,” Mr King said.

“We have made strong progress to ensure we are well placed to execute on our strategic objectives in the second half, but we still have more to do to realise our ambitions in Australia and overseas.”

He said PEXA Exchange continued to perform strongly and had maintained its leading market position, reflecting the resiliency of the platform. 

“It delivered a good first-half result, benefiting from CPI-linked price increases, increased market volumes and penetration and a shift in activity towards higher-value transfers,” he said.

“PEXA Digital Growth improved its performance and continued supporting our customers with a suite of new digital solutions.

“It experienced overall revenue growth of 80 per cent on 1H23 (7 per cent on a pro forma basis), largely due to our new businesses.”

Mr King said the business remained on track for break-even operating EBITDA for the month of June 2024, as they continued to focus on efficiencies and scaling the business.

“PEXA International expanded its position in the UK and is well positioned to scale up and build distribution following our integration of Optima Legal and acquisition of conveyancing technology provider Smoove,” he said.

“We remain focussed on stabilising and optimising the performance of each of our three UK businesses and driving uptake of our PEXA Exchange proposition.”

According to Mr King, PEXA’s UK remortgage proposition now covers about 70 per cent of remortgage types in the market and work was underway to enable an initial sale-and-purchase test transaction by the end of the calendar year.

“Work is progressing with two of the top-10 lenders in the UK who have verbally committed to come onto the platform utilising a combined PEXA/Optima proposition, with both banks completing their PEXA Pay testing,” he said.

“Looking ahead we are well placed to execute on our plan, with strong financial performance and a focus on continued delivery of operating efficiencies and executing on sustainable growth.”

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