Four BNPL stocks release updates as investors stay focused on the red-hot sector
No less than four buy now, pay later (BNPL) stocks made market announcements this morning — a mixture of financing news and trading updates as company earnings season for the 2020 financial year approaches.
The announcements included a quarterly update from Zip Co (ASX:Z1P) where the company said June quarter revenues climbed to a record high of $46.4m.
Z1P said global transaction volume more than doubled in the 2020 financial year, with net bad debts of 2.24 per cent at the end of Q4 — a figure that was “in line with expectations and significantly outperforming the market”, Z1P said. Shares in the company edged lower in morning trade.
“We continue to believe the credit card model is fundamentally broken with customers demanding flexible, responsible, interest free alternatives,” Z1P CEO Larry Diamond said.
Splitit (ASX:SPT) announced the issuance of 3.3m shares to relevant stakeholders, along with a further 3m share options to Australian employees after getting board approval for an “Australian Sub-Plan” within its broader Share Incentive Plan (previously only available in Israel.)
SPT said the new plan adheres to local regulations and will enable it to “incentivise its Australian employees, and allow those employees to access tax relief available in relation to employee share schemes”.
OpenPay (ASX:OPY) released its 4C filing for the June quarter and traded flat at $4.40, after almost doubling from $2.27 over the previous five trading days.
The company said it booked revenue of $4.5m for the quarter, down from $5.3m in March. OPY said revenue for June would have come in at $5.1m for June, but for that fact it deferred $600k to comply with the Australian accounting standard for financial instruments.
OpenPay focused on developments in the UK market, where total transaction value rose by 88 per cent from the March quarter after it launched a partnership with retailer JD Sports in May.
And Sezzle (ASX:SZL) released an Appendix 2A in connection with its share purchase plan for retail shareholders, where the company is aiming to raise another $7.2 million ($US5m) after completing a fully-underwritten $79.1m placement to institutional shareholders earlier this week.
The company is raising capital at $5.30 per share, a 25 per cent discount to its current trading price of around $7. SZL shares have cooled off slightly since Monday, when they jumped to an all-time high of $9.15.