- Online shopping companies are witnessing staggering growth in recent times, reporting record financial numbers.
- com.au has witnessed 104.5% YoY growth in its gross sales during Q3 FY21, and active customers grew by 157% YoY.
- MYD has a strong cash balance of AU$45.0 million at the end of the quarter and plans to launch its mobile app for iOS and Android and expanding its private-label offering.
Ever since the emergence of COVID-19 and subsequent restrictions, there has been a notable shift among customers towards online shopping, and online marketplaces have witnessed staggering growth. Several companies have seen dramatic growth over the year, and any have expanded across geographies, including Kogan.Com Ltd. (ASX:KGN).
Mydeal.Com reports record numbers
Online home and lifestyle goods marketplace Mydeal.com.au Limited (ASX:MYD) witnessed significant growth during Q3 FY21 ended 31 March 2021. MYD’s active customers reached 883,000 from 813,000 in December 2020, while active sellers stood at 1033 (930 in December 2020) with more than 6 million products listed on the marketplace.
Besides growth in its gross sales and customer numbers, MYD witnessed a record 56.1% of all transactions from returning customers compared to the last quarter. This offers validation to the Company’s strategy strengthening its position.
Image Source: © Laviana | Megapixl.com
The Company is benefitting from a greater number of Australian consumers becoming savvier with their online purchases while looking to enhance value through the lowest prices and put increased importance on a seamless customer experience and convenience.
PREVIOUS QUARTER PERFORMANCE: MyDeal (ASX:MYD) posts impressive Q2 FY2021 results; Shares move up on ASX
Growth across key financial metrics
- Gross sales grew strongly to AU$44.7 million in Q3 FY21, representing a growth of 104.5% on the prior year, which was AU$21.9 million in Q3 FY20.
- Gross sales for Q3 FY21 grew 160.1% YoY, excluding face mask and sanitiser sales.
- Growth in active customers in Q3 FY21 hit a new record of 883,397, up from 813,764 on 31 December 2020.
- Strong growth in returning customers in Q3 FY21 with 56.1% transactions from repeat customers, up from 48.4% in the pcp.
- MYD’s Private Label business launched in 2020 and delivered gross sales of AU$2.2 million in Q3.
- Customer cash receipts stood at AU$45.0 million.
The growth trajectory across various metrics further solidified MYD as a leading online retail marketplace for home and lifestyle products.
At the end of the quarter, the Company had a strong capital position with AU$45.0 million cash in the bank, offering MYD the required flexibility to deliver on its growth plans. MYD had shared its intention to remain focused on customer acquisition and investing in the growth of the private label business.
Optimism surrounding future performance
The Company remains significantly optimistic for the next quarter on the back of solid growth in Q3. There is significant adoption of e-commerce at an accelerating rate among Australians. Online shopping in the furniture and homewares segment remains substantially underpenetrated by international standards.
The Company now expects high growth similar to that witnessed in the nine months to 31 March as Q4 has kicked off on a positive note.
MYD believes that it is positioned well to deliver sustainable growth for its customers, suppliers, team and shareholder. The Company’s pipeline of initiatives shall continue to steer a seamless customer experience that shall bolster potential growth.
All in all, MYD’s strong level of customer retention validates that its exclusive marketplace technology is bringing a positive user experience for sellers as well as buyers. Moving ahead, the Company looks forward to launching its mobile app for iOS and Android while expanding its private-label offering.
The MYD stock settled in the green zone at AU$0.780, up by 1.298%. The Company has a market capitalisation of AU$199.29 million.