Tyro Payments shares soar after it swings to profit, lifts earnings

The news: Payments fintech and neobank Tyro has boosted annual revenue by more than a third and swung to profit, lighting a match under its share price.

The numbers: Tyro shares were trading 14.4% higher at $1.287 at 10:46am AEST, after Tyro posted a $6 million statutory net profit, swinging from a loss of nearly $30 million the year before. Group revenue jumped by 33.6% while EBITDA nearly quadrupled (296.5% to $42.3 million). Tyro's gross profit in payments were up 25.4% to $177.4 million, while its much smaller banking arm grew gross profit 63.6% to $8.6 million.

The context: Tyro's low-profile, mobile EFTPOS reader Tyro Pro was launched in November 2022, helped along by distribution deals with Australia Post and Telstra. Bendigo Bank is also a major partner, after the bank transitioned its business and e-commerce clients to Tyro in 2021. Looking to FY24, Tyro expects continued growth driven by non-discretionary and new verticals despite cooling expectations for the broader economy.