Douugh (ASX:DOU) share price rises 16% on soaring number of US users

Douugh is making plans for its international launch and Australia’s its first stop.

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The Douugh Ltd (ASX: DOU) share price is soaring today after the company released its key growth metrics for the month of October.

Over the course of last month, the money management-focused fintech company saw the number of United States-based people using its platform, increase by 42% month-on-month.

The amount of revenue its platform received from its United States users also increased 53% compared to that of September.

The news has seemingly seen the ASX rejoice. At the time of writing, the Douugh share price is 7.9 cents, 16.18% higher than its previous close.

Let’s take a closer look at how Douugh’s platform performed over the month just been.

Douugh share price up on October performance

October was seemingly a strong month for Douugh, and its share price is reaping the rewards today.

Douugh’s total number of customers surged 26% to reach 63,162 over the course of last month.

Its accumulated customer deposits reached $15.5 million – representing a 25% monthly increase.

Finally, the total debit spend on its platform came to $6.6 million, up 26% on that of September.

According to Douugh, the growth can be put down to its increased marketing activities and the launch of its member-get-member feature.

The new feature gives $20 to any user who refers a friend. It also rewards the new member with $20 when they begin to use the platform.

The company’s founder and CEO Andy Taylor also noted that the introduction of a monthly fee has increased the platform’s revenue and that Douugh is still testing the waters of its pricing model.

Taylor predicts Douugh’s revenue will improve further when it launches its crypto service early next year. He also said:

Our focus continues to be on improving activation rates and winning of salary deposits to dramatically increase [average revenue per user]. The paycheck is the catalyst of our flywheel and maximising the revenue opportunity in front of us…

We are now well positioned for the next phase of growth as we prepare for international expansion and the roll-out of the US product to customers in key markets around the world, starting in Australia.

Today’s gains included, the Douugh share price is currently 53% lower than it was at the start of 2021.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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