How has the Afterpay (ASX:APT) share price performed since reporting results?

The buy now, pay later giant released its FY21 results last month…

| More on:
Young boy with glasses in a suit sits at a chair and reads a newspaper.

Image source: Getty Images

The Afterpay Ltd (ASX: APT) share price is charging higher in early trade today, up 2.69% to $126.86.

The S&P/ASX 200 Index (ASX: XJO) is headed the other way, down 0.96%.

A bit over 3 weeks have now passed since the ASX buy now, pay later (BNPL) giant reported its full-year results for the 2021 financial year (FY21). So, it’s time to see how the Afterpay share price has been performing since then.

We take a look at that, and a brief review of those FY21 results, below.

What results did the ASX 200 BNPL company report for FY21?

The Afterpay share price was on watch on 25 August, the day the company released its FY21 results.

Some core metrics included a 90% increase in underlying sales to $21.1 billion. Total income also leapt 78%, reaching $924.7 million for the year ending 30 June.

Afterpay also grew its customer numbers to 16.2 million, up 63% year-on-year. That was helped by a 77% boost in its active merchant numbers, which hit 98,200 by the end of FY21.

Despite that strong growth, earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $38.7 million were down 13% from FY20. The company’s net transaction loss also increased 210% year-on-year to $132.6 million.

Commenting on the growth outlook for the BNPL sector, Afterpay’s chair Elana Rubin said:

Global research continues to indicate that credit cards and credit-based products are in decline, while BNPL continues to expand as a preferred way to pay. Millennials and Gen Z are less likely than their parents to use a credit card, and more likely to engage with organisations and brands that they trust.

This looks likely to be the last full-year financial results we’ll get to analyse Afterpay’s share price.

The company also announced its $39 billion acquisition by Square Inc (NYSE: SQ) is on track for completion in the first quarter of 2022.

How has the Afterpay share price moved since reporting results?

The Afterpay share price fell 1.2% on the day it reported results.

While gaining in intraday trade today, Afterpay shares are down 6% since market close on 24 August.

By comparison, the ASX 200 is down 1.5% over that same period.

Should you invest $1,000 in Afterpay right now?

Before you consider Afterpay, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Afterpay wasn't one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Square. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on BNPL shares