Douugh (ASX:DOU) share price falls as losses grow

The Douugh (ASX:DOU) share price is dropping lower today after the fintech company released its HY21 results. Here's the lowdown.

| More on:
falling asx share price represented by woman making sad face

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Douugh Ltd (ASX: DOU) shares are falling in Monday's session following the release of the company's half-year (1H21) results. At the time of writing, the Douugh share price is trading 2.33% lower at 21 cents.

Here's a rundown of the fintech company's 1H21 performance.

What's impacting the Douugh share price?

The Douugh share price is on the slide today after the company reported a 1H21 loss of $5.4 million, compared to a $739,000 loss reported in 1H20.

Douugh's earnings per share (EPS) was negative $1.17 in 1H21 compared with negative 71 cents EPS in the prior corresponding period (pcp).

As of 31 December 2020, the company held $17 million in total assets. Total assets held as of 30 June 2020 was $812,000.

Cash and cash equivalents at the end of 1H21 was $16 million, compared with $370,000 at the end of the pcp.

Inclusive of GST, Douugh posted $734,000 in receipts from customers for the period, a bump up from the $363,000 earned in 1H20.

Douugh's total equity for the half was $15.1 million. A $900,000 deficiency was posted for 1H20.

Operations review

In September 2020, Douugh completed its acquisition of Douugh Technologies Limited (formerly 'Douugh Limited').

DOU premiered on the ASX in October 2020 following a reverse takeover of Australian telco Zip Tel.

On Friday, Douugh announced that it has executed a binding share sale agreement with Goodments, a millennial investing app. Goodments currently operates in Australia with a customer base that exceeds 13,000.

Douugh advised that the transaction will enable it to accelerate the development of its activities while also positioning the company to move into the retirement and superannuation industries. 

Following its 2020 launch in the United States, the Douugh Australia app is set to launch later this year.

Douugh share price snapshot

Douugh is a fintech company that offers money management services to its client base via the Douugh mobile app. The business states that its vision is 'to become a subscription-based financial control centre'.

Over the past year, the Douugh share price has gained 200%. Douugh shares have also surged more than 20% in the past month.

Based on the current share price, the company commands a market capitalisation of $77.3 million with 359.4 million shares outstanding.

Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Market News

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

3 small-cap ASX healthcare shares 'with strong prospects'

Fund manager IML discusses why these 3 ASX healthcare shares are likely to rise in value.

Read more »

Magnifying glass on a rising interest rate graph.
Share Market News

Will the RBA finally cut interest rates next week?

Let's see what economists are saying about the central bank's meeting.

Read more »

A couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at a laptop screen.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors endured a rough Friday to close the trading week today.

Read more »

a man wearing old fashioned aviator cap and goggles emerges from the top of a cannon pointed towards the sky. He is holding a phone and taking a selfie.
Broker Notes

7 ASX All Ords shares elevated to 'strong buy' status in October

The brokers turned bullish on these ASX companies last month.

Read more »

A businessman compares the growth trajectory of property versus shares.
Share Market News

How ASX shares vs. property performed in October

The national home value rose for the 21st consecutive month while the ASX 200 dipped.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Share Fallers

The worst 3 ASX 200 stocks to buy and hold in October unmasked

You would have done well to avoid these three ASX 200 stocks in October.

Read more »

A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently
52-Week Lows

Why is the Woolworths share price at its lowest point since 2020?

We haven't seen Woolies shares this low since COVID.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why AFT, Amcor, Corporate Travel, and Macquarie shares are falling today

These shares are ending the week in the red. But why?

Read more »