Splitit soars, Sezzle slips on H1 updates

Shares in Afterpay competitor Splitit have surged by as much as 37 per cent after it more than doubled first-half merchant numbers to 509, and more than tripled unique shoppers to 197,000.

The buy now, pay later service lifted its first-half revenue nearly three-fold to $US721,000, but its net loss for the six month period tripled to $US3.84 million ($A5.72 million) on mounting operating expenses.

As expected, research and development spend increased from $US482,000 to US$1.0 million, while sales and marketing costs at the ASX-listed firm rose from $US451,000 to $US1.8 million.

Splitit said its balance sheet remained strong with $US23.7 million cash in the bank at June 30 following its January 2019 IPO, which raised $A12.0 million, and a subsequent $A30.3 million from a capital raising in May.

Splitit customers use credit already available through their banks via credit card accounts.

The company's chief executive and US-based co-founder Gil Don said Splitit had a growing sales pipeline of more than 700 potential merchants and is in discussions with several new potential strategic partners.

It signed with Kogan as its first major Australian retail partner in July.

Shares in Splitit climbed more than 33 per cent on Friday, from 40 cents at the open to 55 cents at the close of trade.

Meanwhile, fellow buy now pay later provider Sezzle shares closed down 1.19 per cent to $2.49, after it reported earnings after Thursday's close.

Sezzle announced its active customers had grown 59.3 per cent in the three months to June 30, to 429,898, with active merchants up 52 per cent in the same period, to 5,048.

Sezzle said it gained another 745 merchants in July.

It had a half-year net loss after tax of $4.76 million, up from $1 million, while net income rose from $225,000 to $3.6 million.

Sezzle chief executive Charlie Youakim called it "very successful" first half for Minneapolis, Minnesota-based company, which debuted on the ASX on July 30.

Austrlaian Associated PressBack to Breaking News

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