The MyDeal.com.au Pty Ltd (ASX: MYD) share price is on watch this morning. Investors will be eyeing off the Aussie marketplace’s shares after it reported impressive sales growth in its third-quarter trading update.
Why is the MyDeal share price on watch?
Shares in the Aussie online marketplace will be worth watching after a strong quarter ended 31 March 2021 (Q3 2021).
MyDeal reported third-quarter gross sales up 104.5% on the prior corresponding period (pcp) to $44.7 million. This means FY2021 year-to-date gross sales are now up 177.4% on the pcp to $171.4 million. For context, MyDeal reported total gross sales of $103.3 million in FY2020.
MyDeal CEO Sean Senvirtne said, “It has been another period of significant growth for MyDeal ending the quarter with 883 thousand active customers, 1,033 active sellers and over 6 million products listed on the marketplace”.
MyDeal had previously recorded 813,764 customers in December with 930 active sellers. “A record 56.1% of all MyDeal’s transactions over the last quarter were from returning customers”, Mr Senvirtne added.
Notably, MyDeal’s Private Label business generated $2.2 million of gross sales for the quarter after launching in 2020.
The MyDeal share price could be on the move this morning following the company’s trading update. MyDeal reported customer cash receipts of $45 million for the quarter. Operating cash outflows totalled $2.3 million including a $0.7 million investment in private label inventory, timing impacts and more staff.
There was also an update on the use of funds from the company’s October 2020 initial public offering (IPO). Estimated expenditure under the prospectus was $40.0 million but actual expenditure was reported at $12.64 million today.
Outlook
In further news that could impact the MyDeal share price this morning, the company provided an outlook through to financial year-end.
MyDeal advised that it expects high year-to-date growth to moderate despite the company reporting gross sales growth in April.
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Motley Fool contributor Ken Hall 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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