Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

The Splitit (ASX:SPT) Share Price Is Going Nuts

The Splitit (ASX: SPT) share price is going nuts today after providing its September 2019 quarter update.

Splitit offers consumers the ability to split the purchase price of basic products (e.g. lemons, toilet paper or both). Shoppers can split their purchases into up to 36 interest-free monthly payments using their existing Visa or Mastercard.

What Did Splitit Reveal In The Sept 19 Update?

The Splitit share price has gone up 7.7% after telling investors that its total merchants has increased by 97% to 624 over the past year.

Perhaps more impressively, the total number of shoppers grew by 187% to 230,000.

The increase of merchants and customers saw merchant transaction volume rise by 100% to US$30.5 million, resulting in merchant fees of US$466,000 for the quarter – up 96% compared to the September 2018 quarter.

Splitit also revealed some of the new merchants that are utilising its service including Kogan.com (ASX: KGN), Philips Respironics and Ableton. Splitit management was pleased with these additions because they are well known brands.

During the quarter Splitit announced partnerships and integrations with GHL (which has 2,000 merchants) and Ally Commerce. After the quarter had ended Splitit also announced the partnerships with Shopify and Divido.

Some merchants that were signed after the end of the quarter include Chili Technology, Eight Sleep, Ace Marks, Nili Lotan, Blue Fly, Ashford and 1800-Accountant.

During the quarter the company burned through US$6.9 million of cash, with US$0.5 million of cash receipts from customers. In terms of cash usage, the two biggest items were the self funding arrangement (US$4.5 million) and advertising (US$1 million).

At 30 September 2019, Splitit had US$16.1 million of cash, which it said provides significant funding for continued growth.

Is The Splitit Share Price A Buy?

Well that’s the $1 million (plus) question isn’t it? Some might say that Splitit has the most sustainable model compared to competitors. I don’t believe they can all be large and profitable at the same time.

The accepted way to value assets is the amount of cash profit they will produce in the future. If Splitit is a buy at this price then I fear some other BNPL operators are not.

For me, it’s too difficult to say how much sustainable profit Splitit will be generating in three or five years from now. That’s why I would rather invest in the growth shares revealed in the free report below.

[ls_content_block id=”14947″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content