Prospa has announced its results for the past 12 months, and it's a bit of a mixed bag in there.
👉 Background: Prospa launched back in Sydney in 2012 and was one of the OG fintech lenders in Australia. It tried.. and failed to IPO twice.. but then successfully listed on the ASX in 2019.
👉 What happened: Now, Prospa has announced its results for the past 12 months, and it's a bit of a mixed bag in there:
👉 What else: All in all, they announced a $29m EBITDA loss and its share price dropped over 10%. It seems like investors are pretty worried that Prospa's customers, aka small businesses, are seriously feeling the pinch right now.
💡A credit loss provision is when a lender sets aside money to cover potential future losses from loans that might not be paid back.
💡Prospa has around 20,000 active business customers. So a big increase in its credit loss provision means that they're expecting more businesses to not pay them back.
💡The credit loss info from Prospa also serves as another indicator of the health of small and medium-sized businesses across Australia. And when businesses borrowers are in the danger zone, it means Prospa might be too.
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