Afterpay Touch rallies after FY earnings
Afterpay Touch shares have hit a three-month high after the buy-now, pay-later company reported its rapid growth had continued with full-year underlying sales up 140 per cent to $5.2 billion.
At 1228 AEST Afterpay shares were up 8.4 per cent to $28.03, their highest level since May 7 when they hit a record high of $28.70.
Afterpay executives told analysts the year had exceeded their expectations particularly their rapid growth in the United States where they have gained 2.1 million customers 15 months after launch.
"It's just an unbelieve achievement by the team," co-founder and chief revenue officer Nick Molnar said.
Afterpay reported an 86 per cent jump in income for the 12 months to June 30, with pro forma underlying earnings flat at $35.5 million.
Its statutory loss blew out to $42.9 million from $9.0 million due to the $44.8 million impact of one-off costs and non-cash items including share-based payments and the application of new accounting standards.
It had $5.2 billion in underlying sales, up from $2.2 billion.
Afterpay said it had 5.2 million active customers as of August 23, up from 4.6 million on June 30, and was adding 12,500 new ones a day.
It said it had 200,000 active customers in the United Kingdom in the 15 weeks since it launched in May under the Clearpay brand.
"Customers obviously love us," Afterpay chief executive Anthony Eisen said.
Mr Eisen said Afterpay's success in Australia and New Zealand, where it has been around since 2015, gave executives confidence Afterpay was on a three-year "glide path" to financial stability.
The company had $231.5 million in cash, $50.2 million in debt and $610.1 million in liquidity as of June 30.
It's targeting $20 billion in gross transaction volume at a 2.0 per cent net transaction margin by fiscal 2022.
Mr Molnar said the company was "racing up against the clock" to implement a feature to allow customers to purchase more expensive items with Afterpay in time for Christmas.
The new feature will let customers pay more up front, with the remaining three payments split equally so they can buy items that exceed their usual transaction limits.
While many Afterpay competitors are launching, Mr Eisen said Afterpay had not seen any decline in interest from merchants.
* Full-year statutory income up 85.6pct to $264.1 million
* Statutory loss loss of $43.8 million, up from $9 million
* No dividend
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