European trade leads charge in first BikeExchange update since IPO
BikeExchange has released its third quarter 2021 update and first since its February IPO, within which there are a series of triple digit growth figures on transaction value and number of consumers using the marketplace.
Having raised $20 million capital the online marketplace has apparently thus far avoided deploying the cash, which it says will come in the next quarter.
“The Q3 growth has been achieved to date without real deployment of the capital raised in the IPO process in February. In growing our business, we are continuing to realise our purpose of making it easy for customers to buy and sell all things bike,” said Mark Watkin, Global CEO.
The investor presentation is headlined with a series of triple digit growth figures, most notably that e-commerce commission revenues were up 847% in Q3 on pcp, while transaction volume grew 142%. Website traffic was said to be up 87%, while active retail account tallies added 14% to reach 1,643 globally.
Transaction values, while arguably reflective of the bike market’s supply at present, rose by 220%, which represented nearing double the growth rate of FY21’s first half. The average order value is now sat at $764, up 85%, though again this could be reflective of cheaper bikes largely being sold out in the marketplace.
Business in Europe was said to be the standout of the eight country representation; namely Germany, Belgium and The Netherlands. European trade was said to have grown 489% to be worth $5,523,000 AUD. Enquiry values surpassed $400m AUD in the quarter and so BikeExchange will now focus on delivering improved conversion as part of its investments.
E-commerce revenues now represent 41% of the group’s revenue, up 7% on Q3 last year. This, says BikeExchange, shows conversion initiatives are already bearing fruit. It does mean as a percentage subscriptions revenue is down 17% year on year, though revenue from media and other sources grew 97%.
Stock issues in the marketplace meant that the firm’s partnership with Trek in North America progressed slower than anticipated, though a partnership with CycleSoftware in Europe delivered strong retail account growth.
Further brand partnerships are said to be lined up heading into FY22 and further recruitment is expected to bolster key positions and add resource to grow commercial activity.
As far as what consumers are searching for, BikeExchange added that searches for kids bikes were up 252%; mountain bikes up 141%; ebikes up 134%; commuter bikes up 175% and that it was a 70:30 split male to female.
