- Splitit (SPT) says the fourth quarter of 2020 was “an exceptionally strong period,” with a host of new brands flocking to adopt its payment solution
- Merchant sales volumes (MSV) grew 218 per cent year-over-year to US$86.3 million (roughly A$112.73 million)
- Gross revenue also soared to US$2.9 million (roughly A$3.79 million), representing a 359 per cent increase compared to the same period in 2019
- The company started this year well-funded with a net cash position of US$76.8 million (roughly A$100.32 million)
- Splitit is down 3 per cent to $1.46 per share
Splitit (SPT) says the fourth quarter of 2020 was “an exceptionally strong period,” with a host of new brands flocking to adopt its payment solution.
During the three months ended December 31, the company saw its merchant sales volumes grow 218 per cent year-over-year to US$86.3 million (roughly A$112.73 million), equivalent to the sales volumes processed in the whole of 2019.
Likewise, gross revenue soared to US$2.9 million (roughly A$3.79 million), representing a 359 per cent increase compared to the same period in 2019 and a 22 per cent increase compared to the prior quarter.
Again, Splitit’s strongest growth across the board came from its key markets in North America and Europe, which helped to drive an increase of 70,000 shoppers in the fourth quarter alone.
A particular focus on increasing shopper engagement also played a key role, with a successful TV, video, podcast and PR campaign that lead to a record performance during the Black Friday and Cyber Monday holiday period.
With such strong growth, Splitit’s total shopper reached approximately 432,000 — more than double those in the fourth quarter of 2019.
“Our focus on innovation to deliver the best shopper experience is paying dividends for merchants who enjoyed improved cart conversion, further supported by our new Flex Fields technology,” said Brad Paterson, CEO of Splitit.
“2021 has started well with strong MSV in January and becoming Google Japan’s first partner for instalment payment solutions,” he added.
The deal with Google Japan marks a key step in Splitit’s strategy to expand its presence in Asia, and has helped to drive significant January MSV growth with continued success particularly in the Homewares and Outdoors and Fitness sectors.
As of December 31, the company had a net cash position of US$76.8 million (roughly A$100.32 million), which consists of US$92.8 million (roughly A$121.22 million) in cash, US$52.1 million (roughly A$68.06 million) in funded merchant receivables, and US$68.1 million (roughly A$88.96 million) in debt payable.
Splitit is down 3 per cent to $1.46 per share at 10:59am AEDT.