Where to next for iSignthis shares after 946% run since January?

A strong uptick in revenue and impressive transaction volume growth all likely contributed the bullish activity around the iSignthis (ASX: ISX) share price since January.

iSignthis close to a 1,000% gain in 2019 Source: Bloomberg

Recent price action at a glance

iSignthis Limited (ASX: ISX) saw its share price soar yesterday, after announcing that its transaction volumes exceeded A$1.1bn for the first time.

The market reaction was evidently bullish, with the iSignthis share price being bid some 14% higher during yesterday’s trading session.

Such sentiment has flowed into today’s session, with the company’s shares rising another 11%, as of 14:10 AEST.

This caps off an extraordinary year for iSignthis: since January the young company has seen its share price skyrocket from just A$0.16 to $1.74 per share – a gain of roughly 946%. Including today's 11% gain, this figure has risen to around 987%.

iSignthis share price: the bull story in focus

iSignthis Limited (ASX: ISX), the dual-listed fintech player looks to be following in the footsteps of market darlings Afterpay and other tech-focused growth stocks.

iSignthis, summarising its own business model, is chiefly involved in the deliverance of:

‘Remote identity verification and payment authentication coupled with emoney, transactional banking, IBANisses and payment processing capability.’

Indeed, besides the impressive share price gains outlined above, the fast-growing small-cap has seen a number of its operational metrics exponentially rise in recent times.

In the company’s half-year report for example, iSignthis reported that ‘annualised monthly GPTV at the end of July came at A$830m.’

Following up on this, the catalyst behind yesterday’s 14% run-up looks to be another strong uptick in volumes processed, with the company announcing that its ‘annualised monthly GPTV’ figures exceeded A$1.1bn, as of June 30.

Importantly, investors should not confuse GPTV with revenue. Afterpay, for example, often refers to the transaction volumes processed through its platform as ‘underlying sales’.

As iSignthis clearly points out: GPTV represents 'the volume of funds processed by the Company on behalf of any of its Merchants.’

Traditional financial metrics also gain

iSignthis Limited’s more traditional financial metrics also posted solid gains during the first-half of 2019.

Here, the company reported total revenues of A$8.2m (up 48% from the prior corresponding period). iSignthis lost just A$0.7m for the half.

The company currently has approximately A$13.0m cash on hand.

In addition to this, one of ISignthis’s’ strengths can be summarised by the fact that the company:

‘Delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world's 4.2Bn 'bank verified' card or account holders.’

iSignthis, though reporting only A$8.2m in total revenue, currently has a market capitalisation of A$1.71bn.

iSignthis partners up with VISA

Finally and maybe one of the biggest drawcards to investors, was the August announcement that iSignthis Limited (ASX: ISX) had entered into a licensing agreement with a Singapore-based subsidiary of payments giant VISA.

Here, the young company commented that as part of this partnership, iSignthis will be allowed 'to act as a merchant's card acquiring institution, and process card not present (online/remote) payments and make settlements on behalf of the merchant from cards issued anywhere globally by other Visa Principal.’

Coincidentally, Afterpay Holdings Limited another fast-rising ASX-listed fintech, in its FY19 report also announced that it had entered into a partnership with VISA, with the aim of facilitating ‘future expansion and platform innovation in the US.’

Ultimately, with such impressive share price momentum YTD, it will be interesting to see if iSignthis can maintain this trajectory going forward.

Only time will tell.


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