The Douugh Ltd (ASX: DOU) share price raced to a 5-month high following major gains over the last two days.
At Wednesday’s closing bell, the financial wellness app provider’s shares finished the day up 42.8% to 11 cents apiece. This means that in the past week alone, the Dough share price has accelerated more than 50% higher.
Record growth in October
In the hours before yesterday’s market open, Douugh released a positive trading update to the ASX.
The company highlighted record growth across its key platform metrics for the month of October. This was underpinned by targeted marketing activities and the launch of its in-app member-get-member-service (MGM).
As a result, the United States customer base increased by 42% month-on-month, with US revenue up 53% month-on-month. The introduction of the company’s new monthly subscription fee for new users helped boost revenue. Douugh said it was focused on continuing new app improvements to achieve higher activation rates and expand the share of wallet feature.
Total customers on the Douugh platform jumped to 63,162 users, which represents a lift of 26% on the prior month.
In addition, accumulated customer deposits rose to $15.5 million, up 25% month-on-month.
Total debit card spend on the platform leaped to $6.6 million, a 26% jump on September’s figures.
Douugh founder and CEO, Andy Taylor commented:
Our focus continues to be on improving activation rates and the winning of salary deposits to dramatically increase ARPU.
The paycheck is the catalyst of our flywheel and maximising the revenue opportunity in front of us. Therefore, investing in the brand and building trust with the user base is essential.
About the Douugh share price
Despite today’s gains, the Douugh share price has fallen by more than 60% over the past 12 months. Year-to-date, its shares are hovering around 35% below the January 1 level.
Based on the current share price, Douugh commands a market capitalisation of roughly $47.64 million.