AUS
NZ
UK
CA
USA
IND
Highlights
- Openpay Group has shared its preliminary FY22 third quarter performance for its ANZ and other regions.
- The BNPL provider remains focused on profitability and reports growth across key performance indicators (KPIs).
- OPY share price zooms up over 7% post announcement to trade at AU$0.375 a share today (5 April 2022, 10:36 AM AEST).
Australian fintech company, Openpay Group Ltd (ASX:OPY), shared its preliminary Q3-FY22 performance in Australia on the ASX today (5 April 2022). The Buy now pay later (BNPL) business is offering its services in Australia, New Zealand, UK and US. In its Q3-FY22 update, Openpay claims to be continuing to put Australia on an accelerated pathway to profitability reporting continued growth in key performance indicators (KPI) like TTV (total transaction value), revenue, active merchant and active customers alongside strong unit economics.
Openpay’s strategy in Australia and New Zealand (ANZ)
In its ANZ region, simplified operations seem to have helped Openpay get on track for profitability within 15 months, while achieving strong unit economics. Usually, Openpay’s Q3 remains seasonally lower than Q2 due to Christmas peak period, however, in the current year, results reflect continued momentum and improvement across its leading indicators post record Q2-FY22 numbers.
Image source-©2022 Kalkine Media ®
Data Source- Openpay Group Ltd’s ASX announcement dated 5 April 2022
In addition, Openpay’s B2B trade finance SaaS solution- OpyPro is also being said to deliver record transaction volume and performance, with March volumes up 544% on pcp. Also in March, Openpay’s integration with e-commerce platform BigCommerce went live, facilitating well-known merchants such as Superdry, Milano Republic and others in Australia. Openpay also claims to have signed many other deals with merchants that may soon go live.
ANZ Active Merchants basket expanded driven by strong growth across key consumer segments, including healthcare, retail, and education. Its ANZ Active Customers also saw growth across most key vertical and strong customer engagement and awareness led to repeat customers.
How is Openpay’s business going on in US and UK?
- In UK- Openpay’s operations and associated cost base have significantly reduced, resulting in a release of capital back to Australia. The BNPL provider thus shall continue to explore opportunities to monetise its UK platform in a capital light manner.
- In US- Openpay is now ready to operate in 45 states, with requisite licenses and bank relationships. In US it is also tailoring its unique flagship flat fee, which would be a single-digit Annual Percentage Rate (APR) offering across veterinary, dental, and other auto dealerships. Openpay claims to have already completed its native integration with e-commerce platform, BigCommerce, allowing its merchants to add Opy as a payment method. Openpay has also been working with investment bank Keefe, Bruyette & Woods (KBW) on capital strategies to support its US growth, to include direct equity or debt investment as securing a suitable capital funding partner is a critical milestone to enable its US operations to proceed to full commercial launch and scale.
Bottom line
While Openpay remains focused on execution of its strategy confirms its current growth trajectory and unit economics, it is still targeting profitability in ANZ within 15 months. The company seems to be delivering strong results across all its lead indicators alongside a solid growth in our unit economics. The presented Q3 numbers demonstrate a step up on the first half, falling in line to its pathway to profitability.
More from ASX- NIC, WGX, Z1P: Why were these ASX shares March’s worst performers?
