Tech: Splitit shares jump 19pc as first quarterly ‘breaks records’
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Though still well short of their mid-March highs, shares in payments provider Splitit (ASX:SPT) jumped 19 per cent this morning on the back of the company’s first quarterly report.
Splitit took about $457,000 in customer receipts for the March quarter, roughly two-fifths of its total revenue for the 2018 financial year.
That was on the back of “record breaking” operations, which included 57 new merchants and 42,000 new shoppers. The company also says it is yet to incur any bad debt losses — shoppers unable to pay back what they owe — proving its “business model and solution are robust and low risk”.
The technology, which takes a consumer’s credit card details at the point of purchase and enables instalment payments based on existing credit on the card, is now active in 27 countries and has processed $128 million across 160,000 transactions.
On top of the increase in merchants and shoppers, Splitit also boosted merchant transactions by 168 per cent year-on-year to $32.8 million and merchant fees by 31 per cent quarter-on-quarter to a tick over half a million.
And, it says, there’s more to come, spruiking a “significant pipeline of signed merchants in the process of integration, including several large high-turnover merchants”, across fashion, power tool, medical and jewellery industries.
The company has negative cash flow of $3.6 million, thanks to hefty marketing, staff and administration costs. It has $9.2 million in the bank and expects to spend $2.3 million in the June quarter.
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Record quarter sees Credible Labs (ASX:CRD) shares jump 13pc to $1.26. Credible reported closed loan volume of $624 million for the March quarter, a 127 per cent boost on the prior year. The fintech also banked $12.2 million in receipts from customers, though significant marketing costs means it maintains negative cash flow for the time being. Some 13,100 loans were taken out via the company’s platform, up from 5,400 loans a year ago.
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