Afterpay Hits All-Time High As Active Customers Top 11 Million

Shares in Afterpay, the buy now, pay later company ended at an all-time high yesterday after a bullish quarterly update.

The shares rose 7.3% to end at $102.97, up slightly from last week’s record close of $102.25.

It hit an all-time high though in trading a week ago at $105.80 after it revealed a dead with Westpac.

In its quarterly update, the company reported a sales record and near doubling of customers around the world.

Afterpay reported a 115% jump in underlying sales to $4.1 billion in the September quarter, up 9% on the record set in the June quarter.

“Momentum towards the end of FY20 continued into Q1 FY21 with the run rate for Q1 FY21 now at $16.4b, up from $15.0b in Q4 FY20,” the company said on Wednesday.

Its operations in the UK – where the number of merchants increased tenfold – was the best performer, with underlying sales skyrocketing 346% as the company built its presence and sales.

The number of active customers globally soared by 98% to 11.2 million, with more than half in the US.

In the more established Australia and New Zealand, underlying sales jumped a more modest but still impressive 63%, while customer growth momentum slowed to 15% from 18% for the 2019-20 June 30 financial year.

The company says its launch into Canada is going well and customer defaults remain below historical rates in all regions in which it operates, continuing a trend of lower gross losses.

Afterpay also plans to expand into Asia, starting in Singapore.

Glenn Dyer

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

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