Is the Class Ltd (ASX: CL1) share price too good to pass up after the company released its June 2019 quarter update?
Class is a software company which specialises in products for financial advisers and self-managed superannuation funds (SMSFs). These are called the Class Portfolio And Class Super, respectively.
Class’ June 2019 Quarter Update
Class revealed that in the June 2019 quarter it achieved total accounts growth of 2,461 accounts to 179,082 accounts. Within that, Class Super grew by 1,787 to 171,447 – net of 300 AMP Limited (ASX: AMP) suspensions. The rest of the growth came from an increase of 674 Class Portfolio accounts to 7,635 total accounts.
The total number of Class customers increased by 39 to 1,545, with 33% of Class Super customers now use Class Portfolio.
CEO Update
The new Class CEO and Managing Director Andrew Russell updated the market about a number of appointments the business has made.
Dan Coutts has been appointed as the Chief Technology Officer (CTO), he was formerly the CTO of Visual Risk in Sydney.
Jason Wilson has been appointed as the Chief Product and Marketing Officer, he was previously the General Manager Digital and most recently the Customer Remediation at Commonwealth Bank of Australia (ASX: CBA).
James Delmar has been appointed as the Chief Sales Officer, he was previously with Salesforce.
Mr Russell said the company will now working on a vision and strategy, which will be presented as part of the results in August.
The CEO also revealed that Class Super has been rated number one as the highest overall client satisfaction for the fifth year in a row and number one for value for money for the third year in a row.
Class also reminded investors that it has invested in Philo Capital Advisers, a leader in the provision of services for the managed discretionary account sector.
The company also announced this week that it has signed wealth accounting group Findex to provide a trust accounting solution for their family office clients. Class will develop a range of features that fully automate and simplify trust accounting requirements.
Is Class A Buy?
Class’ share price has fallen so much over the past year or two that it could actually be good value now. It really depends if Class can continue growing its Class Super numbers and have a high retention rate.
If I were a gambling person I’d be willing to invest a little into it at this price – but it’s not the type of investment I’d normally make, it would have to be ridiculously cheap for me to want to buy it into my own portfolio.
For growth I’d also want to consider the rapidly growing businesses in the free report below.
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