Afterpay indicated it would release further details on its European expansion within months while it also hopes to have further news on its Asia plans this financial year.
Andrew Mitchell,a portfolio manager at Afterpay investor Ophir Asset Management,said:"The business model has been proven out now in a number of geographies and we are in the land grab phase of growth."
He said the scale of online adoption continues to surprise but Ophir will closely monitor the quality of Afterpay's growth."We will be keeping a close eye on their ability to grow merchant sales without sacrificing transaction margins. Any sacrifice on margins to win merchants will be a sign competition is heating up and Afterpay isn’t differentiating its offer as much,"Mr Mitchell said.
Afterpay highlighted its expansion plans after reporting a near doubling of revenue and a decrease in losses for the 2020 financial year.
In a result that was largely flagged in recent performance updates,the buy now,pay later provider reported a 97 per cent increase in revenue to $519.2 million and a net loss of $22.9 million compared with a $43.8 million loss for the 2019 financial year.