Active customers rose 157 per cent year-on-year in the March quarter to 883,397 and 56 per cent of all transactions came from returning customers, up from 48.4 per cent in the year-ago period, helping the e-tailer keep customer acquisition costs in control.
Revenue rose 175.8 per cent to $8.3 million and operating cash outflows of $2.3 million for the quarter included a $700,000 investment in private label inventory, payments to suppliers and investment in additional staff.
Mydeal.com listed in October after raising $40 million, but it has so far spent only one third of the funds raised and it had a $45 million cash balance on March 31.
The shares, issued at $1 have fallen to 77¢, despite a strong debut, mirroring falls in other online retailers including Kogan.com, Adore Beauty, Temple & Webster and Youfoodz.
Chief executive Sean Senvirtne said the June quarter had started positively, with gross sales in April higher than those a year ago, but the company expected growth to moderate as it cycled the COVID-19 lockdowns last year.
“Australians are adopting e-commerce at an accelerating rate and online shopping in the furniture and homewares category remains significantly under-penetrated by global standards,” Mr Senvirtne said.
“Our strong level of customer retention is confirmation that our proprietary marketplace technology is delivering a positive user experience for both sellers and buyers – even when ordering bulky household goods items from multiple sellers from anywhere in Australia all through the one easy transaction – enticing them to return again and again,” he said.
RBC Capital Markets analyst Tim Piper said gross sales fell slightly short of his expectations, mainly because of weaker-than-expected marketplace sales.
“We see further headwinds for [the June quarter], noting the current quarter is one of the stronger seasonal quarters,” he said.