The Openpay Group Ltd (ASX: OPY) share price is soaring today on the back of record quarterly results in Australia and news the company will be prioritising growth in the US market.
Openpay shares are currently trading at 75 cents each, an 19.05% gain on yesterday's close.
Let's take a look at what else might be impacting the company's share price today.
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What did Openpay announce?
Investors are likely responding to a big announcement from the buy now, pay later company. Firstly, Openpay will be making growth in the US market its major priority, working with its key partners in North America.
Openpay believes it can monetise what it describes as a "significant and unique opportunity". The company said it has support from major partners including American Express, Worldpay from FIS, Goldman Sachs, Cross River, Experian, PatientNow, ezyVet, and Kyriba.
The company has also onboarded dentists, vets, car dealers, and a US healthcare insurance provider to its platform across the country.
Significantly, Openpay also announced today its managing director and group CEO Michael Eidel will be leaving the company. The board has appointed Ed Bunting as interim group CEO, effective immediately.
As well, non-executive director Kelly Bayer Rosmarin, the chief executive officer at Optus, advised the company she will be leaving the board. Openpay will now look to fill her shoes with a US-based non-executive director.
Today's news comes on the same day as significant news from BNPL competitor Afterpay Ltd (ASX: APT). The Bank of Spain has approved it being taken over by Block. With Afterpay soon to leave the ASX, Openpay will have more market share in Australia. The Afterpay share price is up 4.76% at the time of writing.
Record transactions
As well as outlining its US goals, Openpay will also speed up its road to profitability in Australia on the back of record Q2 FY22 results.
The Openpay Australian business achieved its best-ever quarterly total transaction value (TTV) of $87 million. This included the highest ever TTV of $35 million in December, leading to $2.4 million in revenue. Year to date, the company achieved a TTV of $160 million, a 44% boost year on year.
The company plans to implement "efficiency measures" to help speed up profitability in the Australian market. An update on the Q2 financial results will be provided on 25 January.
UK update
Finally, Openpay confirmed it will no longer acquire Pay Assist in the United Kingdom. This potential acquisition target was touted to investors in June.
Instead, Openpay announced today it will enter a strategic partnership and revenue-sharing arrangement with the company in the UK market.
Management comment
Speaking on the Openpay change in direction, non-executive chairman Patrick Tuttle said:
This enhanced strategic focus in the US, in addition to bringing forward planned profitability in Australia and entering into a partnership agreement with Payment Assist in the UK market, will ensure the Group's capital and resources are best focused on those opportunities which the Board believes can deliver the strongest financial returns and long-term commercial success.
On behalf of the board, I want to thank Michael for his strong leadership and contributions to the company's achievements over the last three years, including highlights such as its listing on the ASX in 2019, successfully navigating the business through the various COVID pandemic lockdowns, driving substantial growth in all key business metrics, and establishing the solid platform to enable us to pursue a more streamlined regional strategy
Commenting on his exit, departing CEO Michael Eidel said:
It is the right time for the company to write the next chapter of its success story. The team can be proud of the great achievements over the last three years, and I wish them all the very best and great continued success.
Openpay share price recap
The Openpay share price has fallen nearly 67% in the past 12 months and 22% in the past month. However, it's managed to claw back just over 2% in the past week.
In comparison, the S&P/ASX 200 Index (ASX: XJO) has returned nearly 12% to investors in the past year.
The company commands a market capitalisation of roughly $97 million based on the current share price.
