Openpay Group Ltd (ASX: OPY) has achieved record growth in the first quarter of FY21, potentially opening the way for the Openpay share price to reverse the losses over the past month. This includes increases in active customers by 145% and active merchants by 35% against the previous corresponding period (pcp). The company is building on past innovative approaches to grow its user base.
The company's share price has edged down slightly at the open of today's trading, after falling by 3.12% over the past month.
Why is this positive for the Openpay share price?
Financial metrics
Aside from the growth in active users and merchants, the buy now, pay later (BNPL) company also saw growth across a range of additional key metrics. For example, the company has also achieved a 235% pcp increase in the number of active plans. Further increased repeat usage of Openpay plans was recorded with 78% of new plans generated by repeat customers and 46% of customers with multiple active plans.
The UK business growth has sped up substantially. Active plans grew by 56% versus the previous quarter. Currently representing almost 28% of all active plans. It also contributed 82% of all new active customers. All of these metrics are likely to positively pressure the Openpay share price.
Merchant wins
The quarter saw Openpay entrench itself considerably within healthcare, automotive dealers and sports. Openpay's growth strategy into sports membership has been further cemented with a partnership with Stack Sports globally. In addition to significant merchant wins in Australia with major retailers Kogan.com Ltd (ASX: KGN), Dick Smith and Matt Blatt.
Other merchant wins have included automotive sector operators like Janrule Group, Goodyear Autocare and Australia's largest Mazda dealership group; Grand Prix Group.
In Healthcare: Class1 Orthodontics, L&F EyeCare, Blue Mountains Animal Health, Melbourne Dental Suite, Smile Bright White, Bendigo Pets Vet and Richard Lindsay & Associates. Moreover, a referral partnership will see Respiri Ltd (ASX: RSH) promoting Openpay to its network of pharmacies Australia wide.
In the UK, Openpay exclusively trades in the online retail vertical. Consequently, this quarter included new launches included Watch Nation, Tessuti, Size, Shopto and Fulham Football Club, the latter via a partnership with Retail & Sports Systems. Post quarter end, a further English Premier League football club, Wolverhampton Wanderers FC launched with Openpay to enable merchandise purchases through its online store, as did Squizzas and luxury brand, The Rug Company.
The combination of innovative targeting, along with success in customer acquisition is also likely to bode well for the Openpay share price.
Management commentary
Openpay CEO Michael Eidel said:
Openpay made strong progress in the September quarter, delivering across all core strategic pillars. We celebrated a major milestone, passing 1 million active plans and transaction volumes grew at historic levels as B2C plan usage continued to increase.
These achievements were recorded despite continued volatility at the macro level and the lockdown in Victoria, reinforcing the role for Openpay plans as a smart budgeting tool for consumers.
