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Splitit (ASX: SPT) share price wobbles after business update

This buy now, pay later share is all over the place this morning. We take a closer look
The post Splitit (ASX: SPT) share price wobbles after business update appeared first on The Motley Fool Australia. –

The Splitit Ltd (ASX: SPT) share price is seesawing in early trade today after a quarterly update from the Aussie payments group.

Splitit shares fell by 1% on open, before bouncing back to 51 cents — a gain of 3.03% on yesterday’s closing price. However, they then partially retreated and at the time of writing are changing hands for 50 cents — up 1.01%.

What’s with the Splitit share price today?

Investors weren’t too impressed with this morning’s update for the quarter ended 30 June 2021 (Q2 2021). That’s despite Splitit reporting merchant sales volume (MSV) of US$90.3 million, up 38% on Q2 2020 and 10% on last quarter.

Additionally, first-half MSV jumped 93% year-on-year to US$172 million with total merchants up 167% to 2,800.

The Aussie payments group reported a “significant reduction” in its cost of funds from July 2021 onwards. This was thanks to a US$150 million warehouse facility with Goldman Sachs.

The Splitit share price has been jittery on the back of this morning’s financial and operational update. That’s despite the record high quarterly MSV result for the group and a 66,000 increase in total shoppers to 566,000.

Splitit also re-confirmed that tabby, the leading Middle Eastern BNPL operator, and Pakistan-based Qisstpay, will integrate a white-label version of Splitit onto their platforms.

However, it wasn’t all good news from the buy now, pay later group this morning. Splitit CEO Brad Paterson said the quarterly results “need to be considered in the context of comparing against periods with spikes in growth during COVID and choppy macro conditions that created some headwinds”.

“We have seen delays in a number of merchant integrations due to many large merchants investing in and prioritising ecommerce replatforming initiatives,” he added.

Despite Mr Paterson having “never been more confident about the long-term outlook for the business”, the Splitit share price fell at the open before recovering.

Foolish takeaway

The Splitit share price trended lower in early trade today before bouncing back, and is currently in the green. Despite bumper growth numbers, the comparison is off a low base due to COVID impacts in FY 2020.

The Splitit share price is down about 60% year-to-date.

The post Splitit (ASX: SPT) share price wobbles after business update appeared first on The Motley Fool Australia.

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More reading

How has the Afterpay (ASX:APT) share price responded to competition in the past?
Why isn’t the Splitit (ASX:SPT) share price tumbling as much as other BNPL shares?
BNPL ASX share prices tumble as PayPal declares no BNPL late fees

Why the Splitit (ASX:SPT) share price is pushing higher today

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.

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