From an old article, SWF earns 'RBA cash rate +0.5%' on cash...

From an old article, SWF earns 'RBA cash rate +0.5%' on cash balances.

Since the RBA cash rate fell from 1.5% to 1% about 2 months ago, that will negatively impact interest earned by 25%, except a rise in client balances will offset that (some or all).

Just a consideration. That should push back cashflow break even by some months (just 1-2, hopefully).

For 2019, interest made up 50% of revenue. Trading income made up 44%. So it might put a bit of a dampener on revenue next quarter, but 50%+ (hopefully) growth in trades should make up for it.

Don't take it as a down-ramp, but an observation, since I'm a buyer.

Another interesting note about fixed/variable expenses:

In Q417, Q418, Q419, revenue rose from 106->504->1014k while staff costs rose from 448->685->551k. That seems nicely fixed. Though product operating costs rose from 156->226k->616k, which is not so fixed. Not sure what that includes exactly. The brokerage they pay to Open Markets?

Stockbroking 3.0 is the coming of age of cloud computing and housing your trading systems in sites such as Amazon Web Services (AWS). This enables significant scalability instantly, removes the need for expensive and increasingly old legacy in-house architecture and also removes the necessity for high staff numbers.

An interesting quote, I reckon. Suggesting that quite a lot of the expenses are fixed.

I have some more interesting insights, which I'll share later.