New Zealand-based BNPL player Laybuy released its Q2 FY2023 financial update. The key findings from the filing are listed below. 

The company reported a gross merchandise value (GMV) of NZD 198 million (~USD 120 million) in Q2, a decline of 4% YoY, translating to an annualized GMV of NZD 793 million (~USD 486 million). The decline in GMV growth could be attributed to a decline in spend per active customer (GMV per active customer) to NZD 228 (~USD 140) from NZD 232 (~USD 163), and the decline in total active customers to 866,500 from 889,000 in the previous year. 

The UK GMV, which accounted for the bulk (~60%) of GMV in Q2, grew by 6% YoY to NZD 117 million (~USD 72 million), but this was outweighed by the 15% YoY GMV decline in the ANZ market. The UK operation reported 562,000 active customers (~65% of the total) which is a slight decline from 566,100 in the previous year. Australia and New Zealand (ANZ) led in terms of active merchants with 10,200 (~70% of the total). 

Laybuy’s revenue grew by 34% YoY supported by its affiliate program in the UK and a lower default rate (2.05% of GMV in Q2 FY23 vs ~3.0% in Q2 FY2022). The sharpest decline was witnessed in the UK market. The company reported positive EBITDA during the month of September and reaffirmed that it could achieve EBITDA profitability by Q4.