Afterpay closes at new high, again

Afterpay has once again closed at new highs, following the release of its business update for the first quarter of FY21. The yet to be profitable Buy-Now-Pay-Later provider recorded strong performance across all regions, increasing underlying sales 115% to $4.1b, up from $1.9b in Q1 FY20. This was 9% higher than the record underlying sales achieved in the last quarter.

Highlights of the company update included:

  • Merchant revenue margins maintained

  • Net Transaction Margins have been maintained

  • Active customers globally increased 98% to 11.2m (up from 5.7m in Q1 FY20), with the US reaching over 6.5m

  • Active merchants increased by 70% to 63.8k (up from 37.5k in Q1 FY20)

  • Merchants with over $10b of total addressable online sales went live in the US at various points in Q1

  • Good progression on the company's launch into Canada with a number of large retailers now live, integrating or signed

  • Experience to date in newer international markets is showing similar trends at similar points in the life cycle of the Australia and New Zealand business

  • Afterpay and Westpac Group entered into a Collaboration Agreement to facilitate the introduction of Afterpay savings accounts and cash flow tools for customers in Australia

  • Confirmation from AUSTRAC that it will not be taking any further regulatory action following its consideration of the external audit report examining the Company’s compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006