Splitit Ltd (ASX: SPT) is enjoying robust growth as it continues to position itself as a leading card-based installment solution provider. Results for the first half of the year underscores growth in the core business as the company continues to fire on all angles in terms of growth and operational efficiency.
Stellar Financial Results
For starters, the number of active merchants leveraging the instant payment solution services was up 121% in the first half of 2019 compared to last year. Some of the leading brands that joined Splitit Empire include CATTREE, Kogan, Nomos Glashutte, and Nordgreen. The number of unique customers using the global payment solution was also up by 228% to highs of 197,000.
The total payment volume carried out by merchants and customers on the global payment solution was up 134% in half to highs of $34.4 million. Conversely, Splitit saw its revenue from continuing operations increased by 193% to $798,000.
Similarly, the company generated a gross profit of $721,000, representing a 468% year over year growth. The robust growth stems from the company focusing on e-commerce in high credit card utilization market in the period.
Besides, the company benefited from new commercial partnerships with GHL and Ally Commerce that enhanced accessibility to additional merchants and geographies. For instance, a deal with Atlanta based Ally Commerce paves the way for the company to gains access to large enterprise merchants. A deal with GHL, on the other hand, will expand Splitit footprint in South East Asia where e-commerce is a big business
In addition to solid financial results in the first half of the year, Splitit also achieved vital milestones as part of its growth trajectory. Employee headcount more than doubled to cater to the growing needs as Splitit moves to expand its footprint on the global scene. Most hires were carried out in the U.S and APAC, key markets expected to drive growth going forward.
Splitit also continued to strengthen its balance sheet to support an aggressive expansion drive in pursuit of new opportunities for growth. For the first six, months of the year, global payment solution provider carried an initial public offering, consequently raising AU$12 million.
The company also raised an additional AU$30.3 million through subsequent placement and SPP. The strong financial base leaves Splitit well-positioned to pursue rapid growth
Going forward, Splitit is to focus its resources in pursuing opportunities around e-commerce markets with high credit card use rate. The drive should allow the company to pursue new opportunities in a $1.5 trillion market.
In addition, the company is targeting the more than 700 potential merchants that form part of its direct sales pipeline in multiple geographies. Consequently, the company is projecting strong growth attributed to active customers and transaction volume because of an increase in merchant fees.
Splitit is also eyeing new partnerships that have the potential to scale the business globally, especially in fast-growth areas such as e-commerce. The company also intends to invest in marketing and platform innovation as a way of adding new features that should attract more merchants and customers.