The Laybuy Holdings Ltd (ASX: LBY) share price is on the rise in morning trade. This comes after the buy now, pay later (BNPL) provider released a business update for Q1 FY22.
In early morning trade, Laybuy shares climbed by as much as 5.45% to 58 cents apiece. At the time of writing, they have fallen slightly but are still up 1.82% to 56 cents.
How did Laybuy perform?
Investors appear excited about the company's latest performance, sending the Laybuy share price higher.
According to its release, Laybuy reported strong growth across its key operational metrics for the quarter ending 30 June 2021. Gross merchandise value (GMV) increased to a record NZ$184 million (A$172.4 million). On annualised (multiplied by 12) metrics, GMV grew to NZ$738 million (A$691.6 million), up by 58% year-on-year (YoY).
Underpinning the result, the United Kingdom market saw GMV more than double YoY to £49 million (A$90.3 million), up by 107%. The UK is Laybuy's largest market, followed by Australia and New Zealand.
Active customers lifted to 829,000 by the end of the period, representing a 43% jump YoY. UK active customers surged by more than 143% YoY.
Furthermore, active merchants reached more than 10,000 for the period, up from 9,126 in Q4 FY21. The uptick saw a number of retailers signed, such as Sports Bike Shop, JD Sports, Adore Beauty, Boardriders, and more.
The company also entered into strategic partnerships with AWIN, Rakuten, and Sovrn. This will give Laybuy customers access to 5,000 merchants across the UK. Household brands include ASOS, Nike, Marks & Spencer, Amazon, Boots, easyJet, Booking.com, and eBay.
Laybuy also launched its "tap to pay" product in the UK last month. The feature is seen as a way forward in a post COVID-19 environment. Both Australia and New Zealand rolled out the product in Q3 FY21 with much success.
Management commentary
Laybuy managing director Gary Rohloff appeared pleased with the company's performance, saying:
Our growth strategy is delivering, with record GMV in the first quarter of FY22, surpassing the traditional peak quarter of December 2020. Since June 2020, we are delighted to have added over 4,800 active merchants and more than 356,000 new active customers which is driving strong growth across all regions, particularly in the UK market.
About the Laybuy share price
In the past 12 months, Laybuy shares have failed to take off, resulting in a decline of more than 70%. This year alone, the company's share price is down close to 60%, despite building sales momentum.
Laybuy has a market capitalisation of roughly $139 million, with approximately 254 million shares outstanding.
