- 1100% Quarter-Over-Quarter Revenue Growth Putting KinerjaPay on Savvy Investors' Watchlists as Cryptocurrencies and Digital Payment Systems Take Markets by Storm
- Transactions Increasing and Commission Per Transaction Too - Topline Metrics Pointing in the Right Direction and KPAY Operates in 4th Most Populous Country in the World: Peers Suggest Could Trade Higher by Multiples if Growth Continues
With quarterly revenue growth of over 1000% announced last week, Indonesian digital payment company KinerjaPay (OTCQB: KPAY) is standing out as a clear high-growth player in the mobile payments market. The company accepts bitcoin, making them an easy source of liquidity for locked-up Chinese investors, and after less than two years, KinerjaPay's payment platform is paying off in a big way, and their entrance is well-timed... the Asian continent remains the largest digital payments space in the world, and Indosia is, surprisingly, one of the worlds largest populations.
Record Revenue Growth and Transactions:
KinerjaPay is clearly one of the fastest growing digital payment platforms in Indonesia, reporting last week that revenue in the third quarter of 2017 came in at an amazing 1,183% increase compared to the second quarter of the year, at $1.76 mln. Major onboarding efforts are clearly paying off for the small company: the revenue came from 410,000 transactions and 10,962 new users in the quarter, up from 70,000 transactions in the second quarter, and just 29,321 in the first quarter of 2017. That's 485% growth.
Flat revenues from the first quarter to the second quarter of this year spooked some investors, but the company's explanation at that time appears correct, attributed to new customers "testing the KinerjaPay platform." The company anticipated that average transaction sizes would increase as new users become comfortable with the company’s services.
Indeed, average revenue per transaction is growing, and again by leaps and bounds: from $3.34 in 2016 to $4.38 so far in 2017.
KinerjaPay Operating In One Of The Largest, Fastest-Growing Markets:
According to global market research company Research and Markets, transactions in the Indonesian region are expected to be worth $1.6 bn this year, and to reach $14.5bn by 2021. KinerjaPay is quickly becoming a major player.
KinerjaPay's business is built on mobile and digital payments, but is not limited to sending and receiving money. KinerjaPay also has their own e-commerce platform, and in fact, phone top-up and data plan services contributed to the third quarter's tremendous outcome.
In Indonesia, adoption is rapid, for three reasons, according to the intelligence service FT Confidential:
"First, consumers are ready. FT Confidential Research's latest survey of 1,000 urban consumers in 25 Indonesian cities revealed about a third used mobile payments at least once in the three months to the end of September....Second, all the necessary regulatory support is in place for open competition between banks, telecoms companies and tech start-ups...Finally, fintech companies and, to a lesser extent, banks are close to amassing the technological know-how and experience to push for mobile payments beyond their internal networks."
Publicly traded, high-growth digital payment platforms are commanding significant market capitalizations...KPAY could have significant upside when comparing to other peers. With $240K in third quarter revenue, Canadian payments company Glance Technologies (OTCQB: GLNNF)(CSE: GET), for instance, has an impressive $175 mln market valuation.
Meanwhile, little KPAY with $1.76 mln in Q3 revenue stands at $19 mln in market capitalization!
As investors catch on to this major pricing desparity, KPAY could have some catching up to do. At even a reasonable 6x Price-to-Sales multiple, and basing future revenue on this recent quarter, the company could be worth closer to $50 mln in short order, or over $4.00 per share.
KinerjaPay already accepts bitcoin, and the company has their own on-platform currency called Kcoin. KinerjaPay's unique decision to accept cryptocurrencies like this could make it a go-to choice for Chinese investors, for instance, who avoid their slow-moving and bureaucratic banking system as much as possible. Just look at what the decision to aceept Bitcoin has done for Overstock.com (NASDAQ: OSTK) shares - OSTK has rallied 300% this year.
KPAY has work to do in competing with other digital payment platforms in the Asian region, meaning it's not without risks. As a microcap stock it's inherently volatile, and the company may have a harder time raising capital than larger companies, and the company will need to contain costs in order to generate a sustainable bottom line.
About One Equity Stocks:
One Equity Stocks is a leading provider of research on publicly traded emerging growth companies. Our team is comprised of sophisticated financial professionals that strive to find the companies and management teams that will outperform the market and deliver investment returns to our subscribers. We are not a licensed broker-dealer and do not publish investment advice and remind readers that investing involves considerable risk. One Equity Stocks encourages all readers to carefully review the SEC filings of any issuers we cover and consult with an investment professional before making any investment decisions. One Equity Stocks is a for-profit business and is usually compensated for coverage of issuers. In the case of KPAY, One Equity Stocks and affiliates have been compensated 500,000 shares of restricted stock for advisory, marketing and business development services. We also are reimbursed for expenses we incur related to our services. We will likely receive additional compensation in the future.
Contact:
[email protected]
