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Douugh (ASX:DOU) share price races 6% on performance update

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The Douugh Ltd (ASX: DOU) share price is racing higher following an update on its Q3 performance. In early-morning trade, the financial wellness app provider’s shares are swapping hands for 17 cents, up 6.25%.

Let’s take a look at the key highlighted that Douugh mentioned in the release.

How did Douugh perform?

Investors are driving the Douugh share price higher after the company released a positive performance update.

In its announcement, Douugh advised it is continuing to record robust growth on key transactional metrics in Q3 FY21.

Card spend surged to $1.04 million, representing an increase of 643% quarter-on-quarter, and a compound monthly growth rate (CMGR) of 173%. Douugh attributed the result to customers using their Douugh card to pay bills such as Uber and Netflix.

Deposits jumped to more than $2.71 million, which reflected a 553% lift on the previous quarter (Q2 FY21). CMGR stood at 155% since December 2020. The company noted that more customers each day are starting to put their salaries directly into their Douugh account.

The total amount of customers signed up to the Douugh platform also grew to 10,877 users. This is a 259% surge on the prior period and 89% accent on CMGR.

The company noted that it is in the late-stage of development for its Android app. Once rolled out, the app is expected to expand its market presence and attract new customers.

Furthermore, the re-launch of the Goodments app is scheduled for the Australian market following some key improvements. Douugh anticipates the app will help accelerate customer and revenue growth in the short term.

Comments from the CEO

Douugh founder and CEO, Andy Taylor commented:

We continue to build strong momentum in key growth metrics since our November launch and have worked hard to optimise onboarding and activation rates. To the extent that we now have confidence in dialling up the marketing spend and knowing the corresponding rate of customer acquisition.

…Overall, we are very happy to see the generation and acceleration of interchange revenue in-line with the growth deposits and card spend.

About the Douugh share price

The Douugh share price has shot up close to 1,000% since its listing in October 2020. Year-to-date, however, its shares are relatively flat with a marginal 2% increase.

Based on the current share price, Douugh commands a market capitalisation of roughly $62.8 million.

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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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