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:

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%.

shocked man looks through one eye

Image source: Getty Images

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.

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 man is shocked about the explosion happening out of his brain.
Bank Shares

Forget NAB shares, this ASX fintech stock could double in value

Most brokers see downside for NAB, but upside of up to 185% for this ASX share.

Read more »

A young woman looks happily at her phone in one hand with a selection of retail shopping bags in her other hand.
Share Market News

3 reasons to buy this oversold ASX growth stock today

Brokers are upbeat and see upside up to 196%!

Read more »

Photo of two women shopping.
BNPL shares

Are Block shares back in play?

Brokers are upbeat and see a 70% to 170% upside.

Read more »

A happy shopper with a wide mouthed smile holds multiple shopping bags up around her shoulders.
BNPL shares

Why Zip shares are bouncing back 5% today

Some brokers see current share price as a buying opportunity with 100%+ upside.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
BNPL shares

This expert thinks the Zip share price is a buy and could rise 140%!

This expert says Zip is an opportunity to buy now.

Read more »

A man in a business suit scratches his head looking at a graph that started high then dips, then starts to go up again like a rollercoaster.
BNPL shares

Down 45% in 2026, could you double your money buying the dip in Zip shares now?

A leading investment analyst says that the argument for buying the latest dip in Zip shares “must be asked”.

Read more »

Ecstatic woman on her phone giving a fist pump after reading some good news.
BNPL shares

Why are Zip shares rebounding 5% today?

This beaten down stock plans to buy its shares on-market.

Read more »

A young couple look upset as they use their phones.
BNPL shares

Is the Zip share price crash a buying opportunity or a warning sign?

Here's what the experts think.

Read more »