The Douugh Ltd (ASX: DOU) share price is on fire today. At the time of writing, Douugh shares are up a very healthy 5.26% to 10 cents a share. That comes as the broader ASX share market is experiencing a pretty nasty sell off, with the S&P/ASX 200 Index (ASX: XJO) currently down 0.85% to 7,286 points.
So why are Douugh shares bucking this trend? Well, it might have something to do with the ASX announcement the company made to the markets this morning.
This announcement revealed that Douugh is launching its finance app for US residents who use the Android platform. The company tells us that this move will expand its market footprint to “an additional 46% of mobile users”. That’s based on research Douugh included that found Android now accounts for 45.99% of all mobile operating systems in the USA.
It has also been revealed that Douugh’s app has undergone “an extensive refresh and simplification of the architecture and user interface to improve overall usability and increase customer engagement”.
Further, Douugh also tells us that it “is now weeks away” from the launch of its robo-advisor wealth management product. This will reportedly be launched alongside the recently-announced MoneyPass ATM network. This will be “monetised” through a monthly “financial fitness membership fee”. Douugh tells us that “this will be the point in which [Douugh] accelerates its customer acquisition run rate”.
Here’s some of what Douugh founder and CEO Andy Taylor had to say on all of these developments:
Following extensive market testing with our foundational user base, we are delighted to announce the launch of our Android app. We are now in a position to retarget the mass market and optimise our media channels to increase acquisition, and further reduce our CAC [Customer Acquisition Cost]…
We remain on track to aggressively turn up customer acquisition once this occurs… This has meant we have been able to significantly reduce the cash burn rate in the short term.
The Douugh Wealth offering will allow us to fully to deliver on our brand promise… and validate the revenue opportunity with the introduction of a monthly financial fitness membership fee which will underpin our international expansion.
About the Douugh share price
The Douugh share price has been an interesting one to watch since its IPO last year.
The company has had a shaky 2021 so far, and remains down more than 41% year to date, even after today’s move. It’s also down around 80% from its 52-week high of 49 cents a share. However, it is also still up almost 43% since its ASX debut back in October 2020.
On the current share price, Douugh has a market capitalisation of $34.87 million.