Ha ha - You don't have to feel sorry for me mate because I bought back in yesterday when a couple of the others evidently sold out.
Thank you for your kind thoughts though.
And one thing you NEVER do in this business , and that is argue with the Market. And based on my previously posted APRU numbers which were extrapolated from the movement in the last TWO quarterlies are part of the reason's I feel the market has repriced the SP / options and revalued the Company in line with its peers.
Note the similarities of CRO's activities as compared to the most recent announcement which fired up IOU. Also note the similarity in publicized ' Merchant ' number by IOU versus the ' Base Case ' scenario we have for CRO without anything further with respect's to the 22,000 number floated last June / July.
So as per my earlier posts back in July , it was ALWAYS going to be about Merchant / Customer Numbers and TTV. No different to CRO than that of any other BNPL player I had identified when many were swearing that BNPL was not a significant driver for CRO. Ya right. And the comparison's were always there.
Note IOU's response to the ASX as well ( refer below ) ...stating it's a " Further expansion into the BNPL space " for them.
So with ALL these comparisons of Merchants systems , and Target retail / wholesale markets - there is still a BIG difference in market capitalisation . $315 million for them and $169.9 million for CRO.
So for me now this implies there is still a fair way to go in terms of CRO's re-rate in SP and valuation , and based on my rotating ' Buy-in ' Prices , I have not missed a beat since 1.0 -1.1 cents, In fact quite the opposite with overlapping favorable re- Buy prices together with increasing total volumes held.
And just so we are clear ......This post is not a ramp and or a ' pump ' as the pump and the ramp's by poster's has obviously already occurred.
The real beauty of this play now is that you have them ALL ( ie the BNPL Players ) , chasing themselves in rotation with ZIP of course leading the pack with it half year earnings , IOU coming out of Trading Halt tomorrow after an approximate 150% increase , and of course FFG up almost 200% today.
Certainly makes for FUN times.....
Previous Post content regarding ARPU :-
ARPU is significant because it actually denotes and is an indicator of ' Gross Transaction Revenue ' ....which of course is derived from your absolute or average Customer Numbers and ' Users '
So they intrinsically linked and so GROWTH in average ARPU numbers and GROWTH in Customer Numbers - ie the 22,000 hopefully coming in from Appstablishment = GROWTH in the ' Gross Transaction ' number which CRO will make most of their revenue and EBITDA from well into the future.
So it is important to endeavor to extrapolate and get our heads around these ' early ' numbers and comparisons as we move through these milestone phases.
As I mentioned last Quarter , and in the absence of Management providing these details , you can extrapolate and calculate some rough Customer Numbers and corresponding assumed increased by ' Deference '
Quarterly Revenue / Average Revenue Per User = Average Customer Number
Therefore:-
As per the September QTR = $179,746 / $33.40 = 5,382 customers
As per the December QTR = $329,943 / $45.11 = 7,314customers
So that would be an approximate increase in Customers of 1,932 or 35% increase based on previous quarter numbers
Not sure how this then will relate to the reported 22,000 customers which I assume are coming from Appstablishment merger and / or how this has been impacted by the delays in completing this merger. This is still the $64 million dollar question.
In 2020, EasyStore merchants processed over 20 million transactions with a total transactionvalue (TTV) of approximately$435 million (RM1.30 billion using an RM:AUD exchange rate of3.00).
EasyStore differentiates itself from the more common single store e-commerce platforms whichconsist of large online shopping malls that display marketplaces of merchant products andservices by categories and price ranges, by instead providing merchants with one singleintegrated platform to customize and manage their business across multiple online saleschannels. This includes SEA’s largest online shopping malls such as Lazada and Shopee and allmajor social media platforms including Facebook, Instagram, WhatsApp, LINE and WeChat.
EasyStore has since expanded to service more than 7,000 merchants across the South EastAsian (SEA) markets, which include Malaysia, Singapore, Indonesia, Philippines, Thailand,Hong Kong and Taiwan. 5,000 of these are in Malaysia with a growing portfolio of merchants inthe US. = approx. 2,000 in the USA ??? ( by Definition )
The EasyStore platform provides merchants with a turnkey solution including product, customer,order and payment management with supply chain warehouse options for merchants who haveretail or wholesale business models. The key EasyStore merchant verticals are food &beverage, fashion, health & beauty, stationery & craft, automotive & motorbike and home &décor.
Merchant Referral Agreement = FISERV Equivalent
EasyStore has entered into a Merchant Referral Agreement with IOUpay for a one yearrenewable term to refer and acquire its merchants to onboard and utilise IOUpay’s BNPLpayment service offering
System Integration and Rollout
IOUpay and EasyStore have commenced integrating systems with BNPL payment processingcapabilities which will commence with the onboarding of merchants and approved customers bythe start of March this year.
And their ' Key ' wording response to their own ASX price query :-
" No, the Company is not aware of any explanation for the increased securities price. However, it is the view of the Board that shareholders may be price-factoring in the recent ASX announcement from the Company dated 9 February 2021 where a majorpartnership for Buy Now Pay Later (BNPL) services was announced.
This further expansion of the Company into the BNPL sector, further to its existinginterests in the mobile and mobile payments sector, is likely to have been recognised byshareholders as being value accretive to IOUpay Limited shareholders by virtue of recentother BNPL market participants’ relative market performance.
This has been demonstrated most recently by material price and value increases incompanies such as Afterpay Limited (ASX: APT) and ZIP Co Limited (ASX: Z1P) "
(20min delay)