Shares in Payright Ltd (ASX: PYR) are shooting up this morning after the company announced a positive trading update for the fourth quarter of FY21. At the time of writing, the Payright share price has surged 9.8% higher, trading at 56 cents.
Payright is an emerging buy now, pay later (BNPL) company specialising in "more considered" purchases valued between $1,000 and $20,000.
What did Payright announce?
The Payright share price has opened stronger this morning after the company revealed that it had exceeded FY21 forecasts across all key metrics with a record fourth quarter.
In the quarter ending 30 June 2021, the company reported a record quarterly gross merchandise value (GMV) of $26.1 million, up 134% against the prior corresponding period (pcp). June saw a record monthly GMV of $9.2 million.
Payright also achieved a record ~6,000 new customers joining the platform in the June quarter, bringing total customer numbers to ~53,400 as at 30 June, up 58% on pcp.
Merchant stores had also increased in line with the company's guidance, hitting 3,400 by the end of FY21. This represents a 41% increase compared to a year ago.
What did management say?
Payright Co-CEO Piers Redward welcomed the record-setting update, saying:
In what has been a record quarter for the business, we are pleased to have surpassed guidance in all key metrics, reiterating our ability to deliver on our growth strategy.
We are experiencing an increased interest and awareness of Payright's business offering as a result of our ongoing national marketing campaign, which is helping the company build its presence in Australia and New Zealand.
Payright Co-CEO Myles Redward said the company had delivered on platform upgrades to merchant dashboard, customer application and checkout processes in the quarter. He said Payright expected to roll out "a healthy pipeline of new innovations, including our 'Tap & go' card technology" in the coming months.
The continued growth in customer and merchant numbers provides us further validation of the need and demand for Payright's targeted offering, and we remain very optimistic about Payright's growth outlook.
A long way to go for the Payright share price
Despite today's advance, the Payright share price has tumbled 45% from $1.00 to 54.5 cents since its ASX debut on 23 December 2020.
The journey has been more painful for investors that participated in the Payright initial public offering (IPO), where the listing price was $1.20.