Novatti Group Ltd (ASX: NOV) shares are tumbling in late morning trade after the company released a quarterly trading update. At the time of writing, the Novatti share price is trading 5.43% lower at 61 cents.
This comes following yesterday's tremendous performance, which saw the company's share price leap 31.6% higher by the closing bell.
ASX investor enthusiasm was sparked by the revelation that Novatti had been selected by buy now, pay later giant Afterpay Ltd (ASX: APT) to deliver its digital payment solution in New Zealand.
Below we take a look at the latest quarterly report from the digital banking and payments company.
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What did Novatti report?
The Novatti share price is moving lower today despite the company reporting it earned $4.15 million in revenue for the quarter, its highest quarterly revenue yet. Year on year, quarterly sales revenue was up 37% and up 9% from the previous quarter.
Payment processing revenue was the stellar performer. Novatti reported in excess of $3 million in payment processing revenue. The quarter ending 31 March now makes 8 consecutive quarters of record payments from its processing revenue.
Novatti held $6.1 million in cash at the end of the quarter. The company stated it will continue to direct its cash flow towards accelerating its growth strategies. Its new banking business is a cornerstone of its long-term growth plans.
Commenting on the results, Novatti managing director, Peter Cook said:
It was clear across the March quarter that our efforts over past years to develop our digital banking and payments ecosystem is paying off, as new and innovative players continued to turn to Novatti to bring their fintech offerings to market. This was particularly evident with the launch of both LITT and Lifepay. This momentum also continued after the end of the March quarter as we announced the first monetisation of our partnership with global payments disrupter Ripple, which sees Novatti now process cross-border transactions for a leading remittance provider in the Philippines.
These partnerships all provide new potential review opportunities for Novatti going forward. We also continue to strengthen our digital banking and payments ecosystem to ensure we capture future growth opportunities.
Looking ahead, the company forecasts continuing tailwinds with the ongoing global shift to cashless and digital payments, along with the development of new and emerging markets.
Novatti share price snapshot
Despite today's slide, long-term Novatti shareholders will have little to complain about. Over the past 12 months, the Novatti share price is up 218%, far surpassing the 30% gains posted by the All Ordinaries Index (ASX: XAO).
Year to date, Novatti shares have continued to rocket, up 133% so far in 2021.
