Douugh (ASX:DOU) share price falls as losses grow

The Douugh (ASX:DOU) share price is dropping lower today after the fintech company released its HY21 results. Here’s the lowdown.
The post Douugh (ASX:DOU) share price falls as losses grow appeared first on The Motley Fool Australia. –

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Douugh Ltd (ASX: DOU) shares are falling in Monday’s session following the release of the company’s half-year (1H21) results. At the time of writing, the Douugh share price is trading 2.33% lower at 21 cents.

Here’s a rundown of the fintech company’s 1H21 performance.

What’s impacting the Douugh share price?

The Douugh share price is on the slide today after the company reported a 1H21 loss of $5.4 million, compared to a $739,000 loss reported in 1H20.

Douugh’s earnings per share (EPS) was negative $1.17 in 1H21 compared with negative 71 cents EPS in the prior corresponding period (pcp).

As of 31 December 2020, the company held $17 million in total assets. Total assets held as of 30 June 2020 was $812,000.

Cash and cash equivalents at the end of 1H21 was $16 million, compared with $370,000 at the end of the pcp.

Inclusive of GST, Douugh posted $734,000 in receipts from customers for the period, a bump up from the $363,000 earned in 1H20.

Douugh’s total equity for the half was $15.1 million. A $900,000 deficiency was posted for 1H20.

Operations review

In September 2020, Douugh completed its acquisition of Douugh Technologies Limited (formerly ‘Douugh Limited’).

DOU premiered on the ASX in October 2020 following a reverse takeover of Australian telco Zip Tel.

On Friday, Douugh announced that it has executed a binding share sale agreement with Goodments, a millennial investing app. Goodments currently operates in Australia with a customer base that exceeds 13,000.

Douugh advised that the transaction will enable it to accelerate the development of its activities while also positioning the company to move into the retirement and superannuation industries. 

Following its 2020 launch in the United States, the Douugh Australia app is set to launch later this year.

Douugh share price snapshot

Douugh is a fintech company that offers money management services to its client base via the Douugh mobile app. The business states that its vision is ‘to become a subscription-based financial control centre’.

Over the past year, the Douugh share price has gained 200%. Douugh shares have also surged more than 20% in the past month.

Based on the current share price, the company commands a market capitalisation of $77.3 million with 359.4 million shares outstanding.

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Douugh (ASX:DOU) share price falls as losses grow appeared first on The Motley Fool Australia.

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