This week the Jumbo Interactive Ltd (ASX: JIN) share price continued its impressive run and hit a new all-time high of $20.65.
When its shares reached this level, it meant the lottery ticket seller had gained a whopping 354% since this time last year.
This makes it the second-best performer on the All Ordinaries over the period ahead of the Pro Medicus Limited (ASX: PME) share price with its 265% gain and behind the AVITA Medical Ltd (ASX: AVH) share price with its 479% gain.
Why is the Jumbo share price up over 350% in 12 months?
Investors have been scrambling to get hold of the company's shares over the last 12 months thanks to a bumper profit result in FY 2018 and an even stronger performance so far in FY 2019.
During the first half of the financial year, Jumbo reported a net profit after tax of $12.7 million. This was ahead of its guidance and up a massive 140% on the prior corresponding period.
Driving this impressive growth was the winning combination of an increase in average spend per customer, a large increase in new accounts, and a reduction in its cost per lead (CPL).
During the first half the average spend per active customer on an annual basis rose 13.8% to $419.78. This was the result of improved customer engagement off the back of enhancements to its software platform and marketing processes.
New accounts increased to 199,410 during the half, which was close to double the additions made in the prior corresponding period and lifted the total number of active accounts on its platform to 576,144.
This led to total transaction value increasing 66% in the first half to $147.8 million and revenue rising 58% to $30.5 million.
And thanks to a sizeable 31.5% reduction in customer acquisition costs to $12.87 per new account, the company saw its profit margins widen notably, driving the aforementioned strong profit growth.
With growth like that, I think Jumbo is a share to watch very closely even after its remarkable rally over the last 12 months. Especially given the strong growth potential of its SaaS business in the United States and other markets.
