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.

| More on:
a happy investor with a wide smile points to a graph that shows an upward trending share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

More on Technology Shares

A cloud with a blue arrow pointing upwards through its middle symbolising a rising asx share price
Share Gainers

Guess which ASX tech share just soared 40% on takeover news

This small-cap ASX tech share has shot up 40% today.

Read more »

A man leaps through the air with a swimming cap and a look of uncertainty.
Share Gainers

Why is the Appen share price jumping 10% on Monday?

What's going on with Appen shares?

Read more »

A frustrated male investor frowns with his hands and arms open asking why the share price has dropped today
Technology Shares

Why is the Novonix share price having such a lousy start to the week?

The Novonix share price is handing back some of its recent gains.

Read more »

a small child carrying a brief case tries to reach an elevator button outside closed elevator doors.
Technology Shares

Why are Betmakers shares attracting increased short interest lately?

Could this be why more short-sellers are snapping up the stock?

Read more »

Two boys in baskets on skateboards race each along a road.
Technology Shares

Could Afterpay’s global ambitions threaten the future of Zip shares?

Who will win – Afterpay or Zip?

Read more »

Group of people cheer around tablets in office
Technology Shares

These 3 ASX tech shares had a cracking day on the ASX today

Some ASX tech shares were on fire this Friday...

Read more »

A smiling woman holds an arm in the air in triumph while also holding a graphic of a fully-charged battery in her other hand representing the Pilbara Minerals share price
Technology Shares

Why is the Novonix share price leaping 12% on Friday?

The Novonix share price is soaring today. It's also up more than 30% over the past month. Here's why.

Read more »

a woman sits at a computer with a satisfied expression on her face in a white room with greenery outside her window.
Technology Shares

What’s happening with the Xero share price at the end of a strong week?

Xero’s new APAC leadership team will be led by newly appointed managing director, APAC, Joseph Lyons.

Read more »