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Laybuy (ASX:LBY) share price climbs on March trading update

A young woman smiling and looking happy, indicating a positive share price movement on the ASX market
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The Laybuy Holdings Ltd (ASX: LBY) share price is climbing in early-afternoon trade following the release of a trading update. At the time of writing, the buy now, pay later (BNPL) provider’s shares are trading at 93 cents, up 1%.

Trading update

Investors are pushing Laybuy shares higher after the company delivered a robust performance for the month of March.

For the month ending 31 March 2021, Laybuy reported annualised (multiplied by 12) gross merchandise value (GMV) of NZ$704 million. In addition, 479 active merchants and 23,000 active customers signed on to Laybuy’s platform.

Predominately, the United Kingdom market is the company’s largest revenue source, achieving NZ$296 million in annualised GMV for FY21. It’s worth noting that this market has significantly grown 504% over the prior corresponding year. The company said its UK merchants, along with strategic partnerships, are driving the rapid growth.

The Australia New Zealand region closely follows with NZ$293 million in annualised GMV for the current financial year.

In total, this reflects an increase of 159% on FY21 GMV to NZ$589 million, slightly above previous forecasts.

Active merchants stood at 9,126 at the end of the period, representing a 75% increase from 31 March 2020. Furthermore, active customers came to 756,000, a surge of 87% over the same time frame.

Laybuy stated that it has funding options and a capital efficient business model to facilitate future growth. The UK retail market has an addressable opportunity of NZ$757 billion, highlighting an attractive pathway.

In addition, the company said that it was well-placed to respond to any regulatory changes in the BNPL sector.

Laybuy share price review

Over the past 12 months, the Laybuy share price has fallen more than 50%, with close to 30% down year-to-date. The company’s shares have been trending lower ever since its listing in early September 2020.

Based on the current share price, Laybuy presides a market capitalisation of roughly $163.1 million, with 174.4 million shares outstanding.

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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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