The Splitit Ltd (ASX: SPT) share price is trading lower following the release of its full year results.
At the time of writing the buy now pay later provider's shares are down over 8% to a 52-week low of 38.5 cents.
How did Splitit perform in FY 2019?
For the 12 months ended December 31, the Afterpay Ltd (ASX: APT) rival reported Merchant Sales Volume (MSV) of US$88 million, which was up 52% on FY 2018's MSV of US$58 million.
At the end of the period the company MSV annualised at US$110 million. The biggest contributor to its growth was the North American market, which delivered a 78% increase in MSV year on year.
This led to the company more than doubling its revenue in FY 2019, albeit only to US$1.65 million.
Splitit's growth was driven by a 55% lift in 12-month active shoppers to 118,783 and a 97% increase in total active merchants to 720. The latter includes EFTPay, GHL, Ally Commerce, Shopify, Magento, iPay88 and BlueSnap.
Since the end of the period the company has built on this by adding more large merchants and new partners including Stripe, Viagogo, Ride Cake, Redsbaby, and Go Easy Online.
On the bottom line, Splitit reported a net loss of US$21.47 million. Excluding non-cash and non-recurring expenses, its net loss would have been US$9.5 million.
This left Splitit with a cash position of US$16.33 million at the end of December. This consists of US$11.7 million in cash available and another US$4.63 million to be repaid for cash used to advance funds to merchants in the funded model.
Management believes this provides significant capacity to fund its continued growth. Though, it will certainly need to turn a profit in the near future if it is to avoid another capital raising. During 2019 the company raised $12 million from its IPO and a further $30 million from a capital raising.
Outlook.
CEO Brad Paterson said: "The investment we have made in the business in FY19 has set us up to build significant scale in the year ahead. With a refined and focused strategy and our foundational pillars largely in place, we expect to see MSV and resulting revenue accelerate rapidly as we shift our focus to executing on our go-to-market plans and continuing to deliver amazing experiences to our customers."
