MyDeal Finds its ‘Sweet Spot’ in H1 FY21

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By Published On: February 23, 20210 Comments Limited (ASX:MYD) is reporting strong growth in its H1 FY21 results, with increases across gross sales, profit, revenue and active customers. This follows its successful IPO in October 2020. 

“We are pleased to have delivered a record half in gross sales, gross profit and revenue. The strongest results in MyDeal’s history are testament to the efforts of the team and confirms our growth strategy is on track to meet our targets,” said Sean Senvirtne, CEO and Founder of MyDeal.

The report found that gross sales increased 217 percent to $126.7 million, compared to $40 million in H1 FY20. Furthermore, revenue increased by 248 percent to $21.2 million, up from $6.1 million in the same period last year.

Active customers increased by 205 percent YoY, to 813,764 as of 31st December. The launch of its Private Label has also helped contribute $4.3 million to Gross Sales.

“We are well placed to capitalise on maturing trends in Australian online retail,” said Senvirtne. “Online penetration rates in Australia for furniture and homeware sales are in their infancy compared to the UK and US. The more experienced a user gets at e-commerce, the more they want price and value delivered through a seamless customer experience.

via MyDeal

Sean Senvirtne, Founder and CEO of MyDeal | via MyDeal

“This is our sweet spot due to the lower operational costs of our highly scalable, automated proprietary marketplace that lets customers compare and get better prices on a vast range of products found throughout the home.”

“Building on the continued growth in our active customer base and increasing transactions from returning customers, we will continue to focus on customer acquisition as our technology, marketing, and product range evolves, and we add new partnerships to increase our seller base,” he said.

MyDeal isn’t only reporting an increase in Gross Sales. Its customer conversion rate has also experienced a growth of ten percent from the prior year. Additionally, more than half (52.7 percent) of all Q2 FY21 transactions were made from returning customers, compared to 38.5 percent in Q2 FY20.

During the Half, MyDeal hired Lachlan Freeman as its Chief Financial Officer, t further support the business’s growth. For the next FY, MyDeal remains well-positioned to execute its growth strategy, with $48.1 million of cash as of December 31st.

The online retailer plans to roll out an iOS and Android app in the Q2 of FY21 and implement one-to-one real-time AI and machine learning as part of its expansion plans.

“We will continue enhancing a seamless customer experience. We’re launching mobile apps for iOS and Android, implementing one-to-one real-time AI and machine learning into all interactions, and increasing our private label offer while optimising promotional support to realise the higher-margin potential of this product range,” said Senvirtne.

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