• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Macro Central Banks

Splitit Share Price Down 6% on First Quarter Update (ASX:SPT)

Like 0

By Lachlann Tierney, Wednesday, 21 April 2021

The Splitit [ASX:SPT] share price is down today following the release of its first-quarter update. At time of writing SPT shares are down 6.5%, trading at 79.5 cents...

The Splitit Ltd [ASX:SPT] share price is down today following the release of its first quarter update.

At time of writing SPT share price is down 6.5%, trading at 79.5 cents.

The BNPL provider’s shares sank as low as 7.1% in early trade.

Today’s slide reflects Splitit’s recent fortunes, with the stock down 14% over the past month and down 38% year-to-date.

Despite the slump this year, SPT shares are still up 70% over the last 12 months on the back of investor interest in ASX BNPL providers.

ASX SPT - Splitit Share Price ChartSource: Tradingview.com

How did Splitit perform in Q1 FY2021?

Splitit’s share price drop today may very well have to do with its slow growth quarter-over-quarter (QoQ) despite strong year-over-year (YoY) results.

Stay up to date with the latest investment trends and opportunities. Click here to learn more.

YoY, merchant sales volume (MSV) grew 247%, totalling US$82 million or US$328 million on an annualised basis.

And gross revenue rose 292% compared to Q1 FY20, coming in at US$2.7 million.

Splitit’s total shoppers count in Q1 FY21 was 500,000.

This was up 111% from Q1 FY20 and up 16% from Q4 FY20.

SPT’s total merchants base grew from 900 in Q1 FY20 to 2,200 in Q1 FY21, a 155% jump.

SPT’s total merchants base grew from 900 in Q1 FY20 to 2,200 in Q1 FY21Source: Company presentation

However, investors would have likely noticed the regression in MSV and gross revenue when compared to Q4 FY20.

Merchant sales volume was actually down 5% QoQ, with US$86.3 million recorded in Q4 FY20.

Additionally, gross revenue was down 7% compared to the previous quarter.

SPT attributed the QoQ decline to a ‘deliberate and strategic shift away from debit cards in January 2021 onwards.’

The company explained that this shift is part of its strategy to focus on its ‘core competency of credit cards which presents a significantly lower risk profile for the company.’

SPT share price outlook

Splitit’s recent slide may indicate that the BNPL is becoming a saturated market where the bigger players with network effects are beginning to distance themselves from the crowd.

Australia is a mature BNPL market at this stage, having incubated the likes of Afterpay Ltd [ASX:APT] and Zip Co Ltd [ASX:Z1P].

As we covered this week, Afterpay’s growth in Australia is slowing as it approaches full market penetration.

Tellingly however, in a mature market like Australia, Splitit is still heavily invested in raising brand awareness.

SPT today reported that one of its strategies is ‘raising awareness of Splitit’s product among consumers in key markets.’

According to the company, ‘brand awareness is growing through its ongoing targeted marketing strategy.’

Investors may be mulling over the fact that while its rival has almost become a verb denoting the whole industry (‘I’ll just Afterpay it’), Splitit is still investing in brand awareness.

If you’re interested in the changing payments landscape and wondering if there are other fintech investing opportunities apart from the saturated BNPL space, then definitely read our free report on three innovative Aussie fintech stocks with exciting growth potential.

Download the free report here.

Regards,

Lachlann Tierney,
For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Comments

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments
Lachlann Tierney

Lachlann’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • OpenAI and Microsoft Divorce?: Why this could be good for you
    By Charlie Ormond

    While breakups are rarely pretty, this one might actually benefit investors willing to look beyond the drama.

  • Three Lithium Stocks in the Buy Zone
    By Murray Dawes

    Lithium stocks jumped this week, so Murray and Callum discuss whether this could be the beginning of the second boom in lithium stocks. They also discuss a fund manager that is recovering and looking cheap

  • Every Australian Investor Has a Stake in Mining
    By James Cooper

    With its deep pool of retirement capital, Australia is on track to become the world’s primary destination for resource markets.

Primary Sidebar

Latest Articles

  • OpenAI and Microsoft Divorce?: Why this could be good for you
  • Three Lithium Stocks in the Buy Zone
  • Every Australian Investor Has a Stake in Mining
  • The next wave of AI winners
  • Could the US People Repudiate the National Debt?

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988