Splitit share price: where next following Board shakeup?

Splitit – a fast growing payments player in the BNPL space – has today provided an update regarding changes to its Board.

Splitit (ASX: SPT) has today released details concerning a number of Board changes. Investors barely registered this price sensitive announcement, it would seem: with the Splitit share price trading flatly in response.

As part of today’s announcement, Splitit's CEO – Brad Paterson – has today been officially appointed to the Board as Managing Director. Mr Paterson, who took over as Splitit’s Chief Executive in October 2019, has executive-level experience at a diverse array of companies, including Intuit, PayPal and Visa.

Speaking of this news, Spiro Pappas, Splitit's Chairman said:

'We are delighted to have Brad join the Board, in recognition of his great contribution to the business in such a short period of time.’

In addition to this, it was also announced that Mr Jan Koelble has joined Splitit's Board – as a Non-Executive Director.

Giving some insight into his professional background, which includes time at Credit Suisse, it was noted that:

'Jan Koelble is currently the Chief Operating Officer and Co-Founder of Clade & Co., Inc. where he oversees operations, product and business development.'

Additionally, today's announcement marks the departure of Splitit's Co-Founder Gil Don and Non-Executive Director, Michael DeFraco.

Mr Pappas, commenting on Mr Don’s departure, said:

'I would like to thank Splitit's Co-Founder, Gil, for the critical foundational work that he has done over the year to drive Splitit's success. We wish him all the very best for his future endeavours.'

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Splitit share price: the growth story so far

Splitit’s growth has indeed been explosive in the last couple of years.

For example, merchants using Splitit’s payment solutions have grown from 230 in Q218 to 624 in Q319. Customers have grown in step, rising from 60,000 in Q218 to 235,000 in Q319.

As customers and merchants have flocked to Splitit, it's transaction volumes have also climbed: hitting a significant US$30,500,000 in Q319 – up from just US$11,559,240 in Q218.

Mind you, though the company’s operational metrics have all risen in recent years – it’s been a volatile ride for Splitit (ASX: SPT) investors since the company listed on the ASX in 2019.

At an offer price of 20 cents per share, the initial fanfare behind Splitit would best be described as irrationally exuberant.

In short order following its listing, Splitit’s stock traded up to the $2.00 mark. At those levels, IPO investors would have been touting paper profits of ~1,000%. Of course, that soon came undone – with this giddy IPO excitement waning – Splitit’s stock dropped below the 50 cent mark later that year.

Mind you, the stock has recovered from those lows, and currently trades around 65 cents per share – still impressively ahead of its 20 cents IPO offer price.

Importantly, it’s not as if IPO-euphoria is ASX-specific: Beyond Meat, Nio Inc and Tilray all followed a similar path – both explosively up and explosively down – post IPO.

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