MyDeal Records Continuous YoY Growth in Third Quarter

MyDeal has recorded a slight dip in Gross Sales in its recently published Q3 FY21 report. Despite this drop, MyDeal reports strong YoY growth, up 104.5 percent from the same period in 2020 to $44.7 million.

MyDeal’s FY21 nine-month YTD Gross Sales are up 177.4 percent to $171.4 million, up from $103.3 million for the entirety of FY20. Its Q3 revenue also increased 175.8 percent YoY to $8.3 million.

Citing seasonality as the core driver for the dip in sales, the retailer has recorded strong customer growth, now accumulating 883,397 as of March 31st 2021, up from 813,764 in December 2020. The year prior, the retailer reported 343,204 active customers, more than doubling YoY.

“It has been another period of significant growth for MyDeal ending the quarter with 883,000 active customers (up from 813,000 in December), 1033 active sellers (up from 930 in December) and over 6 million products listed on the marketplace,” says Sean Senvirtne, the CEO of MyDeal.

Its Private Label business, which launched in 2020, generated $2.2 million in Gross Sales for Q3, with revenue reported at $8.3 million, up 175.8 percent on PCP.

MyDeal has also seen an increase in return customers, with 56.1 percent of all transaction made by repeat customers. In the previous quarter, MyDeal reported 52.7 percent of orders made by repeat customers and 48.8 percent in Q3 FY20.

“In addition to growing our Gross Sales and customer numbers, a record 56.1 percent of all MyDeal’s transactions over the last quarter were from returning customers,” says Senvirtne. “This is further evidence that our strategy is playing to our strength – as Australian consumers become more savvy with their online purchases, they increasingly look to maximise value through the lowest prices and put increased importance on a seamless customer experience and convenience.”

Retailers in 2021 need to make sure retention is a top priority to ensure positive and healthy growth following the online boom of the pandemic.

“Our strong level of customer retention is confirmation that our proprietary marketplace technology is delivering a positive user experience for both sellers and buyers – even when ordering bulky household good items from multiple sellers from anywhere in Australia all through the one easy transaction – enticing them to return again and again,” Senvirtne continues.

Customer cash receipts totalled $45 million for the quarter. Its operating cash outflow was $2.3 million, with a $0.7 million investment in its Private Label inventory. Further seasonal impacts, such as advertising and supplier payments in Q2 and Q3, and further investment in additional staff, contributed to the outflow.

“With another period of strong growth behind us, we look forward to Q4 and beyond with a sustained level of optimism. Australians are adopting e-commerce at an accelerating rate, and online shopping in the furniture and homewares category remains significantly under-penetrated by global standards,” Senvirtne says.

“As we enter Q4 FY21, we naturally expect the high growth we have seen in the nine months to 31 March to moderate as we cycle the COVID-19 lockdowns in the PCP. With that said, it is pleasing to report that Q4 has started positively, showing Gross Sales growth in April to date against the same period last year, noting that April 2020 was our second highest growth month last year.

“MyDeal is well placed to continue to deliver sustainable growth for its customers, suppliers, team and shareholders. We have a loyal customer base of nearly 900,000 active customers, with engagement levels continuing to improve, as evidenced by our increasing repeat purchase rates. In addition, our pipeline of initiatives will continue to drive a seamless customer experience that will underpin future growth,” he explains.

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