The 1st Group Limited (ASX: 1ST) share price stormed more than 150% higher in early trade today before falling back to a more modest gain of 60% at the time of writing. The rally came after Openpay Group Ltd (ASX: OPY) released an announcement this morning regarding a strategic partnership with the company.
Openpay and 1st Group enter a revenue sharing partnership
Earlier today, Openpay released its quarterly update which highlighted the company's revenue-sharing partnership agreement with 1st Group. The agreement will allow Openpay to provide its buy now, pay later (BNPL) payment services through the MyHealth1st platform. As a result, Openpay will have exposure to various health sectors including pharmacy, dental, optometry and veterinarian services.
The partnership agreement spans 3 years and will see a phased roll-out of Openpay's BNPL services across the MyHealth1st platform. The initial roll-out will be across 60 sites and will also involve Openpay marketing the MyHealth1st platform within its merchant network.
Under the agreement, Openpay will pay for platform functionality and both companies will share reveneus generated from new customer generation.
What does 1st Group do?
1st Group is an Australian digital health group that provides online platofrms that allow clients to search and book appointments with health care providers. The company's platforms include MyHealth1st.com.au, PetYeti.com.au (an online pet service portal) and corporate solutions platform, GoBookings.com. In addition to providing appointment booking services, 1st Group's platforms also facilitate digital patient and customer engagement.
In the company's recent quarterly update released in late April, 1st Group reported improved metrics for the third quarter of FY20. It reported a 6.5% increase in annual recurring revenue (ARR) for the quarter of $5.26 million. Annual contract value (ACV) also increased 4.1% on the previous quarter to $6.36 million.
In response to the coronavirus pandemic, 1st Group also launched COVID19clinics.com.au which serves as a national directory that allows customers to find testing services. The company also launched its integrated Telehealth directory in April, which aims to simplify the experience for customers.
Foolish takeaway
The 1st Group share price bolted more than 150% higher in early trade, hitting an intraday high of 8 cents. At the time of writing the company's share price has been sold-off and is currently trading more than 60% higher for the day at 5 cents per share.
