Technology

With messy IPO behind it, Equity Story poised to boom through FY23

Tue 26 Jul 22, 12:25pm (AEST)
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Key Points

  • Increased spend on advertising and marketing has led to an increase in revenue since May 2022 when company listed
  • Staff workforce has grown to 13 with governance members of the team added to handle AU, US compliance
  • $3.6m cash in hand at end of June quarter

Equity Story (ASX:EQS)’s customer revenue is on the increase as the company boosts its marketing spend and shakes off delays and loss of revenue associated with a protracted IPO.

Back in June, the company won the US equivalent of an Australian financial licence, which allows it to legally act as a retail investment adviser overseas. 

Equity Story enjoys those same privileges here at home, with late June seeing the company expand its AFSL licencing capability. Under that expansion, the company is now able to provide advice on financial products broadly; not just stock markets. 

It then acquired financial commentary brand A Rich Life, formerly the property of Claude Walker. At the time, the brand had a further 2,900 free members, which provides a potential base for future paying subscribers.

IPO process undesirable, but growth underway

Equity Story notes its IPO process took longer than expected, with preparation undertaken in September 2021, and listing delayed until May. 

The company reports cash flows were negatively impacted. Gross proceeds for the IPO were $4.64m. 

Since that time, however, Equity Story has shrugged off the worst, and grown its team of staff to 13. Governance members of staff are included to handle international compliance. 

Equity Story has also moved into a new office in the Sydney CBD backed by a bank guarantee. 

Customer payments dropped during the sell-off season triggered by US inflation, but, the company notes its increased spend on marketing and outreach has seen inward flows return to the coffers.

Recent Gallup research found that Americans self-reporting as financially stable have not changed, despite current pessimism. For Equity Story, this means it still has an addressable market in the US.
Recent Gallup research found that Americans self-reporting as financially stable have not changed, despite current pessimism. For Equity Story, this means it still has an addressable market in the US.
Equity Story was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of financial advice.

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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