The Splitit Ltd (ASX: SPT) share price has risen today after the company released record growth results.
The Splitit share price jumped to $1.72 at market open, but has since retreated. At the time of writing, shares are trading up 1.5% to $1.56.
Record Q3 growth
Splitit told the market it had achieved a record third quarter for the period ending September 30.
The global payment solutions provider reported its merchant sales volume grew strongly to US$70.9 million, up 214% year-on-year (YoY). This was underpinned by an acceleration of the merchant and shopper base which increased 117% and 97% YoY, respectively. The continued expansion of merchant acceptance launched late in Q3.
The average order volume (AOV) also jumped, hitting above US$1,000, up 30% on the prior corresponding period. This was in line with the company’s strategy of attracting larger merchants selling higher value items to customers.
Overall, gross revenue climbed 318% YoY to reach US$2.4 million. The company advised revenue growth was much higher than the merchant sales volume. This was due to merchants adopting Splitit’s funded model, resulting in increased gross merchant fees.
Splitit’s merchant self-onboarding feature is now live in the United States and will enter other geographical markets in Q4 FY20 and Q1 FY21. The new addition is expected to allow merchants to add Splitit with offering instalments within minutes.
In addition, Splitit has partnered with QuickFee Ltd (ASX: QFE), opening up a US$450 billion addressable market in the US and Australia. The service enables clients of accounting and law firms to pay their fees on credit card, using QuickFee’s payments portal. Splitit will look to integrate its product offering, complimenting the existing financing option to customers.
What did management say?
Splitit CEO Brad Paterson said heading towards Q4, the company was excited to report another record quarter with rapid growth. He added:
The continued uptick in MSV and addition of new customers is further proof that today’s shoppers are turning to Splitit to better use their own earned credit. Especially now, we are pleased to offer shoppers a responsible instalment payment solution, while at the same time, helping brands drive value by cost-effectively converting more site visitors into buyers.
For this reason, we continue to see today’s most forward-looking companies choose Splitit to partner with. We are also seeing positive momentum for the option to self-onboarding through our partnership with Stripe, which has now been activated in the US. Q4 has started very strong and we are confident in our continued growth trajectory throughout the remainder of the year.
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