The Laybuy Holdings Ltd (ASX: LBY) share price is on the run today following its latest Q3 results update to the ASX market.
In mid-morning trade, the buy now, pay later (BNPL) provider’s shares are up 4.7% to $1.34.
What’s driving the Laybuy share price higher?
The Laybuy share price is pushing higher after investors seem pleased with the company’s performance over the third quarter.
For the period ending 31 December, Laybuy delivered gross merchandise value (GMV) of a record NZ$182 million. This represented an increase of 184% on the prior corresponding period and 44% over the prior quarter. On an annualised scale, GMV reached around NZ$730 million for the company.
The milestone result was underpinned by Black Friday week and holiday sales in the December period. Laybuy highlighted its Black Friday sales week as the best week in its trading history which saw NZ$22 million of GMV. This reflects a record of 44% higher than the prior week. Holiday sales also grew to NZ$67 million for the month, a rise of 168% on the same time last year.
The company attributed its sound performance from executing key strategic initiatives in the lead-up to the busy season. This included the launch of partner programs in the second quarter with major e-commerce platforms, as well as the ‘Tap to Pay’ feature that rolled out for in-store during the third quarter.
Active customers hit 687,000 and onboard merchants lifted to more than 8,000, a gain of 119,000 and 1,684 for the third quarter, respectively. The increase in both sets of numbers was credited to Laybuy’s marketing strategies.
Outlook
Laybuy advised it will continue to focus its efforts in the New Zealand, Australia, and United Kingdom (UK) markets.
Supported by the launch of several key projects, the company is forecasting the fourth quarter to be on par with Q3’s growth of active merchant and customers.
In addition, Laybuy noted that COVID-19 has changed the retail landscape in the UK with online sales dominating. To drive instore sales, the BNPL provider will wait to introduce its Tap to Pay in this market when government restrictions loosen.
Laybuy also advised it will seek to expand its United States market entry during Q4. This will be accomplished by the company enabling US customers to transact on ANZ and UK platforms that ship to the US.
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More reading
- Here’s how ASX buy now, pay later (BNPL) shares have performed in 2020
- Laybuy (ASX:LBY) share price on watch after market update
Motley Fool contributor Aaron Teboneras 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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