Why the BikeExchange (ASX:BEX) share price is up 7%

The Bikeexchange Ltd Fully Paid Ord. Shrs (ASX: BEX) share price stormed higher in late trade today as the company released its half-yearly report.

The BikeExchange share price closed 6.67% higher today at 24 cents.

What did BikeExchange report?

BikeExchange, which only listed on the ASX earlier this month, reported revenue of $2.005 million for H1 Fy21.

The company reported a loss of $79,100 for the half-year ending 31 December 2020, a drop from the $165,522 profit achieved for the same period in 2019. The company attributed the loss largely to initial public offering (IPO) costs.

BikeExchange advised that operations progressed well during the period as the company raised $20 million in new capital.

Furthermore, trading in the second half of FY21 has started well with January e-commerce transactions showing strong growth on the prior corresponding period (pcp). Overall the group expects the second half of FY21 to demonstrate meaningful total transaction value and revenue growth on that recorded by the BikeExchange Group for the first half of FY21.

The subscription revenue run rate was positive entering the third quarter with increases across retailer sign-ups providing an increasing contribution. In the coming half, the group expects to interact closely with its retail and brand customer base. This will assist and enable them further with consumer engagement and organic growth.

Outlook

Looking ahead, BikeExchange expects continued strong growth in e-commerce. The company is also looking to improve its conversion and commission rates with a boost from increased marketing.

Also aiding to growth, revitalised media partnerships are expected to contribute uplift to media revenues from the 4th quarter of FY21. BikeExchange also noted that there will be new products launching in the next financial year.

About the BikeExchange share price

BikeExchange is an online global marketplace exclusively dealing with bikes and all things related. Operating in 8 countries, the marketplace aims to provide an efficient, technology-driven platform to connect consumers with retailers of bicycle products and accessories.

Since listing on 9 February this year, the BikeExchange share price has lost 7.69%, falling from 26 to 24 cents.