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What’s with the Laybuy (ASX:LBY) share price today?

flat asx share price represented by investor shrugging
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The Laybuy Holdings Ltd (ASX: LBY) share price seesawing today despite announcing a positive market update on its performance. In mid-morning trade, the buy now, pay later (BNPL) provider’s shares are slightly down 0.7% to $1.26.

Quick take on Laybuy

Launched in 2017, Laybuy has been growing rapidly in the United States, Australia, New Zealand, and the United Kingdom. The fintech company has partnered with over 8,000 retail merchants to offer consumers BNPL solutions. The integrated payment platform allows customers to make a purchase and pay it off over 6 weekly instalments without incurring interest.

What was announced?

The Laybuy share price hasn’t gone anywhere today as investors appear unfazed by the company’s latest update.

According to this morning’s release, Laybuy advised that it is continuing to deliver a strong result for FY21. Based on the current performance, the company expects revenue and net transaction margin to be above analyst estimates.

As such, FY21 forecasted revenue is projected to come in the range of NZ$32 million to NZ$33 million. This represents an increase of 132% to 139% year-on-year. The group recorded revenue of NZ$13.7 million for FY20. In addition, net transaction margin value is anticipated to stand between NZ$10.2 million and NZ$10.7 million. Furthermore, Laybuy stated that executing key strategic initiatives like its global partner programme drove the underlying performance.

The company reported Annualised Gross Merchant Value (GMV) of NZ$630 million based on annualising GMV for January and February. This is a lift of the originally assumed GMV estimate of NZ$581 million to NZ$586 million for FY21.

 640 active merchants and 45,811 active customers were added to Laybuy’s books since the start of the calendar year.

Laybuy revealed that it will release its Q4 business update on 20 April 2021.

About the share price

Since its listing last September at $1.41, the Laybuy share price has fallen around 10% in value. However, the company’s shares stormed to a record high of $2.30 in the days following the IPO, and then headed south.

More recently, its shares have been relatively stable from the beginning of January, down 1.5% year-to-date.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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