The Hub24 Ltd (ASX: HUB) share price is in focus today after the company gave a FY25 first quarter update.
Hub24 has a number of financial technology offerings for advisers and their clients. Its Hub24 platform has a range of investment options, including market-leading managed portfolio solutions and enhanced transaction and reporting functionality.
FY25 first quarter update
The ASX fintech share reported record quarterly platform net inflows of $4 billion in FY25 Q1, up 44%, “excluding large migrations”.
Hub24 also reported that total funds under administration (FUA) reached $113 billion at 30 September 2024, up 37% year over year. That number breaks down to $91.6 billion of platform FUA (up 41% year on year), while portfolio, administration and reporting services (PARS) FUA of $21.4 billion was up 21% year on year.
Impressively, the company said its Hub24 platform was ranked first for quarterly and annual net inflows of all platform providers, according to Plan for Life data. Hub24’s market share increased to 7.7% (up from 6.3% at 30 June 2023) and is ranked seventh place overall.
Hub24 said the EQT migrations are “progressing”, with a further $1.5 billion of FUA migrated in early October 2024 and $4.1 billion migrated in total to date. It’s expecting approximately $5 billion of FUA from the EQT migrations, with the remainder expected by the end of FY25.
Hub24 also announced a strategic alliance with Reach Alternative Investments, with the ASX fintech share taking a minority stake in the business. The two companies will co-design alternative investment options to meet the increasing adviser and client demand for these investments.
Outlook for the Hub24 share price
The company said this strong start, excluding large migrations, reflects its “continued market leadership and focus on delivering customer service excellence”.
It said it has a “strong pipeline” across all customer segments and it remains “confident” in meeting its FY26 platform FUA target of between $115 billion to $123 billion. Hub24 also said it’s “well-positioned for future growth”.
According to Google Finance, at the pre-open price, Hub24 had a price/earnings ratio (p/e ratio) of well over 100 following a 91% rise over the prior year.
The share price could keep rising – it would have seemingly been a mistake to avoid investing six months ago. But what p/e ratio is too high, despite its growing earnings? That’s a difficult question to answer.
There are other ASX growth shares I’d rather invest in.
