The Cettire Ltd (ASX: CTT) share price is ending the week with a bang.
In morning trade, the online luxury products retailer's shares are up 13% to $3.79.
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Why is the Cettire share price jumping?
Investors have been fighting to get hold of the company's shares on Friday after it released another impressive quarterly update.
According to the release, for the three months ended 31 March, Cettire's gross revenue increased 95% over the prior corresponding period to $256.7 million.
Also growing strongly was its sales revenue, which increased 88% over the same period last year to $191 million.
This strong top-line growth was underpinned by an 84% increase in active customers ~644,000 and a continued strong gross revenue contribution from repeat customers. A 12% increase in average order value to $832 also supported its sales growth.
Management highlights that its US business continues to demonstrate excellent momentum. Its year with year-on-year gross revenue growth accelerated in the third quarter compared with the year-on-year growth rate achieved during the first half.
Furthermore, since the implementation of the company's updated checkout on 19 March, Cettire has observed stable conversion rates in the key market.
In addition, it has experienced continued strong growth in its available inventory, with the total database of unique products and seller stock value observing a noticeable step-up during the period.
Commenting on the quarter, Cettire's founder and CEO, Dean Mintz, said:
This result reflects continued strength in Cettire's quarterly performance, with ongoing momentum in sales revenue, active customer growth and conversion to profit. Cettire continues to rapidly drive market penetration across its global footprint.
Market conditions remain constructive and we have supplemented our strong customer proposition with marketing investment. Further, our increased focus on traffic quality has driven significant year-on-year improvement in conversion rate and an uplift in average order values.
What about earnings?
Failing to hold back the Cettire share price today is a somewhat underwhelming earnings update.
Cettire revealed that its unaudited adjusted EBITDA came in at $6 million for the three months on a delivered margin greater than 20%.
This compares unfavourably to first half adjusted EBITDA of $26.1 million on a delivered margin of 23.2%.
However, Mr Mintz highlights that the quarter is its seasonal low point. He explains:
Our business is execution focused. We continue to operate the business to maximise revenue growth, whilst also delivering profitability and cash generation. Whilst Q3 is traditionally a seasonal low point, we observed a strong improvement in year-on-year profit trends.
