The Temple & Webster Group Ltd (ASX: TPW) share price is storming higher after the release of its full year results.
At the time of writing the online homewares retailer's shares are up 5.5% to a record high of $8.21.
How did Temple & Webster perform in FY 2020?
For the 12 months ended 30 June 2020, Temple & Webster reported revenue of $176.3 million and earnings before interest, tax, depreciation, and amortisation (EBITDA) of $8.5 million. This represents a 74% and 467% increase, respectively, on the prior corresponding period.
One key driver of this strong growth was a 77% year on year increase in active customers to 480,000.
Temple & Webster reported a cash flow positive year, with ending cash of $38.1 million and no debt. These figures exclude the proceeds from its recent $40 million placement.
"Great set of numbers."
Temple & Webster's CEO, Mark Coulter, was very pleased with the company's performance over the 12 months.
He said "I am pleased to report a great set of numbers in the face of some very tough retail conditions. I am so proud of the Temple & Webster team who have risen to the challenge of continuing to look after our customers while transitioning to a work from home environment."
Mr Coulter was particularly pleased with its net promoter score. This measure of customer satisfaction reached a record of 65%+ during the fourth quarter.
"Out of all the great numbers that we are releasing today, the record level of customer satisfaction is the one that I am most proud of. Many customers are trying online shopping for their homes for the first time out of necessity and it's clear the inherent benefits of online, being range, value and convenience, have resonated with those customers," he commented.
Trading update.
Pleasingly, Temple & Webster has started the new financial year in a positive fashion.
Management advised that July's revenue growth rates are in line with those experienced throughout the fourth quarter. Fourth quarter revenue was up 130% on the prior corresponding period.
Looking ahead, Temple & Webster advised that it is committed to a high growth strategy to take advantage of the structural shift towards online. It intends to capitalise on both organic and inorganic opportunities.
This strategy supports Temple & Webster's stated goal of becoming the first place Australians turn to when shopping for their homes and work spaces.
