4Q21 GTV a marginal miss, but still growing YoY4Q21 trading...

4Q21 GTV a marginal miss, but still growing YoY

4Q21 trading update. Brief update, only sales and customer numbers provided. 4Q21 Gross Sales (GTV) $46.6m (up 13% on pcp) and a ~4% miss to our forecasts, while the full year FY21 GTV ~1% miss to RBCe.

- 4Q21 GTV up 13% on pcp, implying a ~4% QoQ growth in quarterly GTV

- Marketplace (MP) GTV a marginal miss to our estimates; however, Private label division came in line with RBCe and performed ahead of marketplace on a QoQ basis, with 4Q revenue of $2.4m (up 9% QoQ)

- Active customers 894,225, with monthly customer additions slowing down towards 4Q19 levels (from ~23.2k in 3Q21 to ~3.6k in 4Q21)

- iOS and Android apps launched in May and early signs positive

RBC Fundamental View

Outperform rating on MYD, with $1.20/share price target.

Today’s update sees the top-line come in pretty close to our expectations, as MYD continues to cycle off COVID comps in 4Q. Noting that the 4Q is usually one of the stronger seasonal quarters, MYD has recorded QoQ growth; however, only in low single digit, to us indicating broader online retail demand continues to moderate slightly. While MYD’s customer base now sits close to the 900k mark, customer acquisition has slowed down back to mid-2019 levels (largely as expected) and now the focus for the business will likely be on customer re-engagement, repeat order activity and transaction frequency, as the customers acquired through COVID only have value if they return to repurchase. MYD’s private label has performed in line with our expectations with 4Q revenues being healthy and we think this can continue to ramp up as the product range is expanded and the business invests in more inventory. All in all, MYD has recorded YoY growth in sales in 4Q (the first full quarter to cycle COVID) against a peer set in which we expect to see some negative comps recorded.