It's a bumper day for the MyDeal.com.au Ltd (ASX: MYD) share price after the company released a record first quarter update.
At the time of writing, the MyDeal share price is up 11.5% to 82.5 cents.
MyDeal share price jumps on record Q1 sales
The e-commerce business continued to make headway in the first quarter ended 30 September. Some key highlights include:
- Record gross sales of $68.5 million, up 49% quarter-on-quarter and up 22.6% on FY20
- Record active customers of 929,461, up 38.8%
- Returning customers driving transaction growth, accounting for nearly 60% of all transactions vs. 49.7% in Q1 FY21
- Positive operating cash flow of $5.5 million
- Cash balance of $47.2 million million as at 30 September with no debt
During the quarter, MyDeal commenced a brand refresh across all operating channels in a move to make "MyDeal famous and becoming the place where Australians start their shopping journey".
This included an updated company logo, typography, colour palette, and tone of voice which forms its central "MyDeal feel" to embrace the positive emotion of shopping.
Phase one of the brand strategy rollout will include an extensive multi-channel brand campaign through various mediums including TV, radio, digital broadcast channels, out-of-home, and at sporting events.
Management commentary
MyDeal CEO Sean Senvirtne was pleased with the record quarter, despite "cycling a period of unprecedented growth". Commenting on the company's growth trajectory and strategic initiatives, he said:
Through relentless focus on our key strategic initiatives, doing it 'right not rushed' and executing to plan we have been able to grow faster than the industry average. Operating in a growing and underpenetrated online household goods market within Australia, MyDeal continues to acquire more market share and will continue to thrive in the years to come.
What's next for MyDeal?
The MyDeal share price is down 32% year-to-date despite the company's strong growth trajectory.
Looking ahead, Senvirtne said that "we are looking forward to what we predict will be a highly successful 2020 … as we position ourselves to capitalise on the increased demand for online shopping."
