The Tyro Payments Limited (ASX: TYR) share price has been an impressive performer following its debut on the ASX boards.
In afternoon trade the payment solutions and banking products provider's shares are changing hands at $3.55.
This is a massive 29% higher than its IPO price of $2.75. This means Tyro now has a market capitalisation of approximately $1.75 billion.
What is Tyro?
Tyro is a technology-focused company which provides Australian businesses with payment solutions and value-adding business banking products.
It provides simple, flexible, and reliable payments solutions as a merchant acquirer, along with complementary business banking products.
In FY 2019 there were 29,000 Australian merchants that chose to partner with the company. Through these merchants, Tyro processed more than $17.5 billion in transaction value.
This made it Australia's fifth largest merchant acquiring bank by number of terminals, behind only Commonwealth Bank of Australia (ASX: CBA) and the rest of the big four banks.
Tyro reported $189.8 million in revenue and income from all its business segments in FY 2019. It also originated $52.2 million in loans and held merchant deposits totalling $26.9 million at the end of June.
What about the future?
According to its prospectus, management expects pro forma revenue of $240.6 million and gross profit of $99.8 million in FY 2020. This represents growth of 26.8% and 19.8%, respectively, on the prior corresponding period.
Further down the income statement, the company has forecast an EBITDA loss of $0.620 million and a loss after tax of $19.25 million. Whilst this is a sizeable loss, Tyro certainly has a strong enough balance sheet to cope. Its IPO raised approximately $287 million.
Although the company hasn't provided any further forecasts, it appears well-positioned for growth.
The company estimates that there are approximately 2.31 million businesses operating in Australia. Of this, there were 1.67 million small and medium-sized enterprises, of which 312,000 operate in its target verticals of Health, Hospitality and Retail.
The company intends to use the proceeds of the IPO to increase its merchant base in its core market and expand its payments and banking offerings. It also intends to enter two new verticals – accommodation and services.
