The Splitit Ltd (ASX: SPT) share price is on the move following the release of its half year results.
At the time of writing, the payments company's shares are down 2% to $1.79.
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How did Splitit perform in the first half?
As with almost all buy now later providers such as Afterpay Ltd (ASX: APT) and Zip Co Limited (ASX: Z1P), Splitit was a positive performer over the last six months.
For the half ending 30 June 2020, Splitit recorded a 133% jump in merchant sales volume (MSV) to US$89.1 million. This led to the company reporting a 244% increase in gross revenue to US$3.1 million for the six months.
Key drivers of its growth were increases in customer numbers and merchants. At the end of the half, the company had 149,000 active shoppers on its platform, up 28% on the prior corresponding period. Growing at a stronger rate, albeit from a very low base, were its active merchants. They are now 519, up 92% on the prior corresponding period. Since the end of the period, Splitit has signed up a further 116 new merchants.
Also improving was its repeat shoppers metric. Approximately 11.2% of shoppers that made a purchase in the first half have previously made a successful purchase. While this trails its peers materially, with an average order value of US$845, up 59% from US$531, these purchases are likely to be much less frequent than what Afterpay and co experience.
What else happened in the half?
During the half the company signed partnerships with Stripe, Visa, and Mastercard to accelerate innovation and merchant acceptance.
Management advised that these partnerships are progressing well.
In addition, Splitit integrated with B2B and B2C payment platform Blue Snap, and further enhanced its integration with open-source e-commerce platform, Magento.
Outlook.
Management advised that its growth is expected to continue in the second half and beyond.
It commented: "Splitit has a compelling consumer and merchant offering that is resonating strongly in the current environment. This has seen it deliver record MSV and Gross Revenue results, despite challenging global conditions."
"This growth is expected to continue in H2 FY20 and beyond as its new partnerships with leading global organisations, Stripe, Visa and Mastercard, help to drive innovation in the buy now pay later space, improve the customer experience, and to accelerate the global acceptance of Splitit with new merchants. This growth will be supported by the Company's enhanced leadership team and new brand identity," it concluded.
