RBC Market comment.

Interesting to see this comment in afr


RBC Capital Markets analyst Tim Piper said the December-half result had hits and misses, with the take rate in marketplace sales (the percentage of gross sales collected) falling slightly.
“It is pleasing to see repeat orders accounting for more than 50 per cent along with strong customer growth; however, margins are a bit lower than we anticipated,” he said.
“From here, we look for Mydeal to leverage the strong growth in customer numbers that it has achieved through 2020, encourage greater repeat activity, higher order values, and greater transaction frequency.
“We also expect that the continued growth in [stock keeping units] and sellers on the platform will continue to drive relevance and search traffic for the business, although we remain wary of the rising cost of performance marketing being witnessed across the broader e-commerce space.”