Splitit (ASX: SPT) share price wobbles after business update

This buy now, pay later share is all over the place this morning. We take a closer look

| More on:
shocked man looks through one eye

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

The Splitit Ltd (ASX: SPT) share price is seesawing in early trade today after a quarterly update from the Aussie payments group.

Splitit shares fell by 1% on open, before bouncing back to 51 cents — a gain of 3.03% on yesterday's closing price. However, they then partially retreated and at the time of writing are changing hands for 50 cents — up 1.01%.

What's with the Splitit share price today?

Investors weren't too impressed with this morning's update for the quarter ended 30 June 2021 (Q2 2021). That's despite Splitit reporting merchant sales volume (MSV) of US$90.3 million, up 38% on Q2 2020 and 10% on last quarter.

Additionally, first-half MSV jumped 93% year-on-year to US$172 million with total merchants up 167% to 2,800.

The Aussie payments group reported a "significant reduction" in its cost of funds from July 2021 onwards. This was thanks to a US$150 million warehouse facility with Goldman Sachs.

The Splitit share price has been jittery on the back of this morning's financial and operational update. That's despite the record high quarterly MSV result for the group and a 66,000 increase in total shoppers to 566,000.

Splitit also re-confirmed that tabby, the leading Middle Eastern BNPL operator, and Pakistan-based Qisstpay, will integrate a white-label version of Splitit onto their platforms.

However, it wasn't all good news from the buy now, pay later group this morning. Splitit CEO Brad Paterson said the quarterly results "need to be considered in the context of comparing against periods with spikes in growth during COVID and choppy macro conditions that created some headwinds".

"We have seen delays in a number of merchant integrations due to many large merchants investing in and prioritising ecommerce replatforming initiatives," he added.

Despite Mr Paterson having "never been more confident about the long-term outlook for the business", the Splitit share price fell at the open before recovering.

Foolish takeaway

The Splitit share price trended lower in early trade today before bouncing back, and is currently in the green. Despite bumper growth numbers, the comparison is off a low base due to COVID impacts in FY 2020.

The Splitit share price is down about 60% year-to-date.

Should you invest $1,000 in Auckland International Airport Limited right now?

Before you buy Auckland International Airport Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Auckland International Airport Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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 BNPL shares

A young woman smiles as she rides a zip line high above the trees.
BNPL shares

How Zip shares rebounded 45% from their 7 April lows to beat the ASX 200

Did you catch what happened with Zip shares in April?

Read more »

A young woman in a shop hands her credit card to the cashier.
BNPL shares

Up 41% in 3 weeks, should I buy Zip shares today?

Zip shares have been on a tear in April. Now what?

Read more »

A young woman smiles as she rides a zip line high above the trees.
BNPL shares

Zip share price rockets 15% on record cash earnings!

It’s a great day to own Zip shares today. Here’s why.

Read more »

A young woman in a shop hands her credit card to the cashier.
Share Gainers

Zip share price rockets 20% on $50 million buyback news

Zip shares are surging ahead of the company’s planned $50 million buyback.

Read more »

BNPL written on a smartphone.
BNPL shares

Down almost 40% this year, can Zip shares turn around?

Is it time to buy now or wait until later?

Read more »

A man looking at his laptop and thinking.
BNPL shares

Buy, hold, or sell: What's the verdict on Zip shares?

Time to buy the dip on Zip, or time to close the case for good?

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Earnings Results

Zip share price jumps 11% on record half year result

This buy now pay later provider has delivered another impressive result.

Read more »

A young woman in a shop hands her credit card to the cashier.
BNPL shares

Own Zip shares? Here's what to watch when the company reports next week

After big returns in 2024, here’s what to expect from the buy now, pay later company in next week’s report. 

Read more »