The Openpay Group Ltd (ASX: OPY) share price has dropped by 3.91% after the buy-now, pay-later (BNPL) provider released its quarterly results this morning.
What did Openpay report?
Openpay revealed that it continues to grow its core BNPL business and to expand into additional household spend verticals and other adjacent market opportunities.
The company's revenue for 1H FY20 (period ended 31 December 2019) increased by 73% compared to 1H FY19, which was made up of a 58% increase in merchant fees and a 91% increase in consumer fees.
So far today, the market hasn't reacted positively to the results, with the Openpay share price down by almost 4% at the time of writing.
Other key metrics include an increase in active plans by 187% in the 12 months from 31 December 2018 to 31 December 2019 year-on-year (yoy) and increased by 46% when compared to the previous quarter, Q1 FY20. Active customers increased by 99% (yoy), while active merchants increased by 74% (yoy).
The company's total transactional value for 1H FY20 (period ended 31 December 2019) increased 95% compared to 1H FY19, primarily due to continued strong growth in the Australian retail sector and due to the introduction of a new UK client, Ideal Shopping Direct.
Openpay's cash at bank was $52.6 million at the end of Q2 FY20.
Through to the end of FY20, Openpay has reported that it will focus on building upon its current market position in the automotive, healthcare and home improvement verticals to attempt to capture a larger share of the Australian retail market. It will also leverage its BNPL platform to expand into new household spend verticals and other adjacent market opportunities.
In addition to continuing its momentum in the Australian market, Openpay reports that it has a strategic plan in place to convert interest from the nascent UK BNPL market, with a strong pipeline of leading retail merchant brands.
Openpay's CEO Michael Eidel commented:
In this first quarterly review since our IPO, Openpay is pleased to report demonstrated strong growth across all key metrics, including a record increase in customer acquisitions for the December quarter. We've executed and implemented agreements with notable retail brands and are starting to bed down agreements with highly active UK retailers.
The remainder of FY20 will be a busy time for Openpay as we continue to grow our core buy now pay later business across Australia and the UK and continue to deliver upon our IPO objectives.
