- Afterpay (APT) has backed up its previous predictions for the 2020 financial year, doubling 2019’s revenue and sales results
- Total revenue for the year ending June 30, 2020, came in at $519.2 million, representing a 97 per cent increase compared to last year’s $264.1 million
- Total sales also jumped 112 per cent, from $5.2 billion in 2019 to $11.1 billion this year
- Despite the improved performance, the company still posted a loss for the period of $22.9 million, a 48 per cent improvement over last year’s loss of $43.8 million
- Afterpay closed 0.6 per cent in the green for $91.26 per share
Afterpay (APT) has backed up its previous predictions for the 2020 financial year, doubling 2019’s revenue and sales results.
For the year ending June 30, 2020, the buy now, pay later giant posted a 97 per cent increase in revenue, from $264.1 million last year to $519.2 million this year.
The significant increase was largely underpinned by a 112 per cent jump in sales for the period, from $5.2 billion in 2019 to $11.1 billion this year.
This came from a similar increase in the company’s number of active customers, which rose 116 per cent from 4.6 million to 9.9 million.
Of this amount, 5.6 million are based in the United States while one million are based in the United Kingdom. Afterpay’s continued penetration in these markets led to an average of 17,300 new customers each day, peaking in the fourth quarter of the year with a daily average of 20,500 new customers.
While the company noted that the onset of the COVID-19 pandemic has led to a significant impact on industry-wide retail sales, Afterpay’s predominantly e-commerce focused service has benefitted from a substantial shift to online spending, as well as a shift away from traditional forms of credit.
Despite the strong level of growth, however, the company still posted a loss for the period of $22.9 million. That said, this is a 48 per cent improvement over last year’s loss of $43.8 million.
Anthony Eisen, Managing Director and CEO of Afterpay, said that despite the impact of the virus, the company’s key focus throughout the 2020 financial year was growth.
“Notwithstanding the challenges ofCOVID-19, we launched in-store with selected retail stores in the US.
I am proud of the team and the support we could provide our merchant partners as they gradually re-opened for their customers,” he added.
Afterpay is now turning its focus to the European market, having announced its $82 million acquisition of Spain-based Pagantis on August 24. The company is another buy now, pay later service that operates across Spain, France and Italy, with regulatory approval for expansion into the Portuguese market.
The strong 2020 financial results culminated in an all-time share price high of $94.77 per share, representing an increase of more than 925 per cent from a 12-month low of $8.90 in March.
Afterpay closed 0.6 per cent in the green for $91.26 per share.