Just 9 months on from the launch of their newest wealth management software, Class Limited (ASX: CL1) customer update is rapidly accelerating for Class Trust to be tracking 3 times quicker than its flagship SMSF software which has established itself as the market leader.
Following extensive consultation from their thousands of customers which were crying out for an automated software solution for Trust creation, administration and reporting, Class launched Class Trust in October 2020. The platform drew upon much of the functionality demanded by accounting and financial advice offices, while drawing upon the leading tech stack for integration with existing Class Super and Class Portfolio products.
Since the launch, Class Trust has more than 200 unique customers managing more than 3,100 Trust accounts. At the same stage of its commercialisation, Class Super had just 71 customers before establishing itself as the cornerstone of Class which reported H1 revenue of $25.9m and $10.4m EBITDA. This represented 27% and 29% pcp increases respectively.
As the first market mover into the Trust administration software space, Class Trust customers have been glowing in its reviews to report time savings of 68% compared to the alternative – Microsoft Excel spreadsheets. Growth in the market is highlighted by the $3.5 trillion of wealth to be transferred from the baby boomer generation to their beneficiaries over the next 20 years with Trusts acknowledged as the most effective vehicle.
Despite minimal marketing spend while still in the pilot phase of Class Trust, client referrals have resulted in 13.3% of Super customers using Class Trust which alone has a $117m addressable market on top of the $108m addressable market for Super which Class has approximately 45% market share.
With Trusts now the second biggest vehicle to build wealth outside of superannuation and excellent client feedback for Class Trust, CEO Andrew Russell confirmed that new cross-referral features will be introduced into Class platforms for new client acquisition at minimal expense.
Separate from these internal sales capabilities, Class also confirmed significant growth in its sales team which is now fully equipped to have conversations with customers about all Class products as part of the multiproduct strategy. This includes the DocTech division of Class which has been established via acquisitions over the past 18 months to provide vertical efficiencies for Class customers.
Excluding the acquired revenue, Russell confirmed 17% organic growth based on April’s roll forward revenue with the company on track to deliver 22% revenue growth for FY21.
*Owners of this website are CL1 shareholders
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
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