Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Will Openpay’s share price rise on revenue surge?

ASX-listed BNPL company Openpay could see its share price rise on a leap in transactional revenue. The fintech company has also obtained an award from Canstar for its BNPL services.

Source: Bloomberg

ASX-listed buy-now-pay-later (BNPL) Openpay could see its share price rise on a surge in its total transactional revenue (TTV) in the first quarter of the new financial year.

However, the company could be hamstrung by a decline in its cash reserves to potentially perilous lows.

Transactional revenue leaps over 50%

According to its latest quarterly report, Openpay's TTV rose 56% in Q1FY23 compared to the same period last year, to reach a record high of $114.3 million. Q1FY23 marks the first quarter that Openpay's revenue breached the $100 million threshold.

Openpay's margins also improved to what the company says are market-leading levels. Its revenue margin rose 1.4 percentage points to 8.5% in Q1FY23, as compared to 7.1% for the same period last year. Net transaction margins lifted to 3.4% in the quarter, compared to 3.0% for the same period in 2021.

These improvements to revenue and margins arrived as Openpay trimmed its net bad debt to 1.4% from 1.6% in Q1FY22.

Dion Appel, Openpay CEO, said this strong performance would enable the BNPL platform to achieve profitability on schedule by the end of the first half of next year.

'Our first quarter in the new financial year continues to deliver market leading margins driven by strong growth in TTV,' said Dion Appel, Openpay CEO.

'At the same time, we're proactively managing credit quality and loss rates which remain within target range.

'With continued management of our operating costs, we have clear milestones to deliver ANZ cash EBITDA profitability by June 2023, including having existing working capital facilities to support the growth.'

Openpay's cash drops to uncomfortable low

While revenue and margins improved in the first quarter of the new financial year, Openpay's cash position dwindled to an uncomfortable low during the period.

Openpay's cash balance stood at $8.9 million as of the end of Q1FY23. This could leave Openpay with less than two-quarters of cash runway left.

Openpay has offered the reassurance that it still retains $17.5 million of undrawn working capital facilities, including $10 million that is uncommitted.

Openpay is also optimistic that it can bolster its cash position after dispensing with its overseas operations and focusing on its home market of Australia and New Zealand.

'The entity has high confidence in amending and increasing the cash available to be drawn under existing debt facilities in the very near term,' Openpay's Q1FY23 report said.

'Operating losses are reducing following the exit of UK and US markets in calendar 2022, and the entity is targeting EBITDA profitability in the Australia and New Zealand region on a monthly basis by June 2023.'

Canstar awards Openpay with BNPL honour

Openpay is one of multiple BNPL companies listed on the ASX that specialise in using fintech to provide credit to consumers on an interest-free basis.

These BNPL platforms usually collaborate with large-scale retail brands to facilitate consumer credit provision and sales.In Openpay’s case, these brands cover various sectors, including Bupa Dental, Bunnings, Reebok Fitness and Sportsco.

In September, Australian financial comparison site Canstar gave Openpay its Canstar Outstanding Value – Buy Now Pay Later Award for 2022.

The award was based on comparing 13 BNPL providers in terms of price, service and consumer protection.

Canstar highlighted Openpay's expanding range of retail partners and its affordability compared to other BNPL providers.

'Canstar Research noted the range of retailers offering Openpay has expanded this year, as its brand continues to grow,' Canstar said.

'Additionally, Openpay has continued to improve its fee structure, notably offering larger payment plans for less than the cost of other services.'

Source: Bloomberg

Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.* Learn more about share CFDs or shares trading with us, or open an account to get started today.

* Winner of ‘Best Multi-Platform Provider’ at ADVFN International Finance Awards 2022


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.