Recently, Afterpay Touch Group Limited (ASX: APT) released a press release which focused on the data related to the updates regarding the US markets as well as Australia/New Zealand markets. First, we would talk about the updates related to the US markets. The company stated that it has already processed more than A$115 million in terms of the underlying sales via the platform of Afterpay on the YTD basis i.e. till October. The company has witnessed a robust response from the retailers as well as consumers in the United States. Moreover, the management of the company reflected positive views related to the additional retailers which are in the company’s pipeline. Additionally, as per the press release, the favourable, as well as robust results from the US markets, was witnessed within the time frame of 6 months of the launch. This reflects the growth at a speed which was higher than even achieved in Australia.
The early engagement metrics reflects the favourable momentum in the company’s value proposition with the customers as well as retailers. The crucial metrics which the company has highlighted are average order value, repetitive utilization by the customers as well as sales penetration.
Let us now have a look at the market update in the Australia/New Zealand market. The management of the company stated that the positive momentum was witnessed in the network as well as platform growth and it has also managed to encounter robust performance in the sales as well as growth in the customers. It seems like the platform of Afterpay has been very much adapted by the enterprises as the company stated that numerous large enterprise retailers have decided to work with the platform of the company. Additionally, the management of the company has reflected favourable views with respect to its customer base as they stated that their customers have been showcasing the increased engagement levels. The company also commented that it has been encountering the increased repeat transaction activity. The company’s data analytics along with the promotional capability have been aiding the company in terms of serving the retailers as well as customers.
In the press release which was released in the early November 2018, the company also threw some light on the regulatory environment. The management of the company stated that it needs to comply with several ASX as well as corporate regulations which also includes the Australian Consumer Law.
On November 26, 2018, strong momentum was visible in the stock price of the company. The stock ended the session at A$11.940 per share which reflects that it has witnessed an intraday rise of A$0.650 per share or 5.757%. Its market capitalization stood at $2.6 billion. Within the span of 1 month, it has managed to deliver -10.68%.
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