ASX Announcement
05th September 2022

Openpay Preliminary FY22 results

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Openpay reported strong FY22 performance and also made some important decisions during and after FY22. These decisions were to simplify Openpay’s model further to become a leaner, more efficient business, focused on the Australian market, where it is on a clear path to deliver cash EBITDA profitability by June 2023.

Key FY22 highlights:

Solid growth across leading indicators:

  • Record TTV of $344 million, an increase of 49% YoY highlighting ANZ’s strong momentum
  • B2C Revenue of $26.3 million, 40% growth YoY – while continuing to deliver market-leading margins
  • OpyPro delivered a record $40.7 million in TTV, an increase of 683% YoY in the capital-light B2B business
  • Market-leading Revenue Margin of 7.7%, 2H FY22 Revenue Margin of 8.1%
  • Net Transaction Margin (NTM) remains high at 2.9%, 2H FY22 NTM of 3.1%
  • Net Transaction Loss (NTL) remains low at-1.0%, 2H FY22 NTL of-1.0%
  • Arrears (% of Receivables) of 1.1% and Net Bad Debts (% of TTV) of 1.6%
  • Active Plans of 1.8 million, an improvement of 50% YoY
  • Active Customers of 321,000, an increase of 21% YoY
  • Active Merchants of 4,100 targeting desired customer demographics
  • At the end of June 2022, Openpay had $10.3m in cash and cash equivalents, with a further $17.5 million (net of transaction costs) to be added to subsequent to year-end from Private Placement and Share Purchase Plan.

Review of Operations

In FY22, Openpay Group announced a strategy simplification, focused on an accelerated path to profitability in Australia. As a result, the Group significantly reduced its UK operations with a view to exit that market. In July 2022, Openpay also announced its withdrawal from the US market, leaving Australia as its core operating jurisdiction.

Openpay ANZ showed strong growth across all key B2C metrics in FY22:

  • Total Transaction Value increased 49% to a record $344 million
  • Active Plans increased by 50% to 1.8 million
  • Active Merchants increased by 9% to 4.1k as we selectively on-boarded new merchants
  • Active Customers increased by 21% to 321k
  • Revenue increased by 40% to $26.3 million

OpyPro continues to grow in FY22 with record performance:

  • TTV up 683% to $40.7 million
  • Active trading accounts increased by 114% to 11.2k

Delivering market-leading margins in FY22:

  • Revenue margin of 7.7%
  • Net Transaction Margin (NTM) of 2.9%
  • Net Transaction Loss (NTL) of – 1.0%

Continued strong trends in arrears and bad debts:

  • Arrears down to 1.1% from 1.9% in Fy21
  • Net Bad Debts stable at 1.6% in FY22 (Fy21: 1.7%)

CEO of Openpay, Dion Appel commented: “During and shortly after FY22, Openpay rapidly responded to changes in the equity market and macroeconomic environment and simplified its business model. We moved quickly and made some tough decisions including exiting the UK market in January and pausing our investment into the US market in July. These decisions enabled laser beam focus on Australia, our most mature market, and the one closest to delivering cash profitability. The simplification strategy has resulted in a leaner and more efficient business where cost synergies will continue to flow into 2023, alongside the momentum of stronger performance, industry leading margins and unit economics and improved bad debts and arrears. It has also put a stop to the high investment required to pursue the US opportunity.

In August, Openpay also successfully completed a Private Placement of $18.25m and Share Purchase Plan of $5.86m. These funds will be leveraged to further solidify our simplified strategy to deliver cash EBITDA profitability by June 2023.”

Authorised by:
The Board of Directors
Openpay Group Ltd

For further information, please contact:

Investors & Media

Aline van Deventer
Head of Investor Relations
Mobile: +61 423 55 34 34

Media email: media@openpay.com.au
Investors email: investors@openpay.com.au

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