The Mydeal.ComAu Pty Ltd (ASX: MYD) share price has come under pressure on Tuesday.
At the time of writing, the ecommerce company's shares are down 4% to $1.21.
While this means the MyDeal share price is down materially from its 52-week high of $2.20, it is still up 21% from its October IPO price.
Why is the MyDeal share price under pressure?
There appears to be a couple of potential catalysts for today's decline. One is the release of its half year results this morning and the other is general weakness in the tech sector.
Following a very poor night of trade on Wall Street's tech-focused Nasdaq index, the S&P/ASX All Technology Index (ASX: XTX) is down a disappointing 3.6% this morning.
How did MyDeal perform in the first half?
MyDeal was a positive performer during the first half of FY 2021.
For the six months ended 31 December, it reported a 217% increase in gross sales to $126.7 million and a 248% jump in revenue to $21.2 million.
And while its gross margin softened slightly, gross profit still grew at the very strong rate of 210% to $18.9 million.
This strong growth was driven by a 205% increase in active customers to 813,764 and further increases in repeat use. Management notes that 52.7% of second quarter transactions came from returning customers. This is up from 38.5% a year earlier.
At the end of the period, MyDeal had a cash balance of $48.1 million. Management believes this leaves it with a significant runway for the execution of its growth strategy.
MyDeal's Founder and CEO, Sean Senvirtne, commented: "We are pleased to have delivered a record half in gross sales, gross profit and revenue. The strongest results in MyDeal's history are testament to the efforts of the team and confirms our growth strategy is on track to meet our targets."
Outlook
MyDeal hasn't provided any guidance for the full year. However, it has revealed that the second half has started strongly, with unaudited gross sales in January 2021 up 190% on the prior corresponding period.
The company is also on track to launch its iOS and Android apps in second half.
Looking ahead, management notes that online shopping in the furniture and homewares category remains significantly under-penetrated by global standards. It feels this leaves MyDeal well placed to benefit from rising penetration and to continue to capture market share in the future.
