Splitit Ltd (ASX: SPT) shares have been performing well of late, having gained nearly 17% over the last month. Today, however, the Splitit share price is falling. This comes after the buy now, pay later (BNPL) company released its FY20 fourth quarter report.
By the market's close, Splitit shares had fallen 2.7% lower to $1.46.
Record quarter
The Splitit share price is sliding lower today despite the company reporting record quarterly results. Gross revenue surged to US$2.9 million, up 359% year on year (YOY), surpassing the total revenue achieved in FY19.
Notably, the company grew its merchant sales volume (MSV) 218% YoY to US$86.3 million. The increase equates to US$345 million when annualised. This was driven largely by the accelerated adoption by shoppers and large merchants.
MSV growth was again especially strong in Splitit's largest markets of North America and Europe. This was supported by the company's first targeted consumer marketing campaign in North America. The campaign helped accelerate consumer adoption, leading to a 70,000 increase in shoppers in the quarter alone.
Splitit also added multiple large merchants to the platform during the quarter. This helped it achieve a total of 1,800 merchants, an increase of 144% YoY. The growth in new merchants was accelerated by the ability to cross sell through the company's partnership with Stripe Connect. Stripe Connect is an online marketplace available in more than 100 countries.
In reducing onboarding time by enabling any merchant that accepts credit cards to offer instalments within minutes, Splitit expects the accelerated growth in merchant adoption to continue in FY21 and beyond.
Global expansion
Splitit's vertical expansion, such as through partnership with QuickFee, has continued to drive growth and present opportunities for the company to expand globally. For example, more than 210 accounting and law firms now use Splitit, highlighting strong initial uptake in the professional services vertical. Based on this, Splitit is aiming to accelerate growth in the professional services vertical through more dedicated sales and marketing efforts.
In the fourth quarter, the company's global and scalable platform was used by shoppers in 100 countries and by merchants in over 30 countries. According to Splitit, as the company grows, it will be seeking further expansion opportunities with particular focus on Asia and Europe.
About the Splitit share price
It has not only been a strong month for the Splitit share price, but also for other BNPL players. In particular Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) shares have also performed well, rising by 12% and 35% respectively. The more junior BNPL company is not being left behind by its larger counterparts, however, returning 16.8%.
Based on the current Splitit share price, the company boasts a market capitalisation of $500 million.
