The Splitit Ltd (ASX: SPT) share price is edging higher on Friday morning. This comes after the company released its third-quarter results for FY21.
At the time of writing, the buy now, pay later (BNPL) company's shares are up 2.5% to 41 cents apiece.
Third-quarter highlights
In an update that could be pushing the Splitit share price higher, the company recapped a quarter of moderate growth against a backdrop of COVID and "choppy macro conditions".
Splitit achieved a record quarter in terms of merchant sales volume (MSV). This was up 31% year-on-year to US$93 million.
Gross revenue increased 20% year-on-year to US$2.6 million. The company said MSV growth was higher than revenue growth due to a more diversified merchant base and a higher proportion of MSV through its basic model.
Total merchants increased by 144% to approximately 3,300. This was driven by the company's new merchant expansion, the appointment of executive advisors, and the launch of Splitit Plus.
Total shoppers increased by 78% to around 644,000 supported by a growing acceptance of Splitit and ongoing consumer engagement activities. Splitit pointed out its average order value (AOV) of more than US$1,000 remains a "critical differentiator" for the business.
Product innovations
In a further positive for the Splitit share price, the company went live with a number of product innovations. These helped to drive its total addressable market, acquire merchants, and streamline the onboarding process.
Splitit extended its reach by white-labeling its platform, turning it into a Platform as a Service offering. The new offering drove new partnerships with BNPL providers, tabby and QisstPay.
During the quarter, Splitit began offering its installment services to Discover Global Network cardholders worldwide. This partnership agreement will help Splitit tap into more than 50 million merchant acceptance locations and more than 20 alliance partner networks across the world.
More recently, Splitit completed integration with Salesforce Commerce Cloud, making it easier for e-commerce and retailers to offer Splitit services at the checkout.
Splitit share price in the deep red
The Splitit share price is down around 68% year-to-date as the rout continues to deepen between established and emerging ASX-listed BNPL players.
While the likes of Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) have managed to stay in positive year-to-date territory, smaller players including Splitit have seen valuations more than halve.
