Despite a surge in usership, triggered by the COVID-19 pandemic, the company still ran at a loss of 22.9 million Australian dollars for the year (16.5 million U.S. dollars), compared with losses of 43.8 million Australian dollars (31.7 million U.S. dollars) the year before.
Confirmation of the result initially pushed Afterpay's share price to a new record high of 95.97 Australian dollars (69.56 U.S. dollars), more than 10 times what it was worth in March of this year.
Afterpay allows online purchases to be paid off in instalments, charging retailers a commission, and in the past 12 months has grown to over 10 million users worldwide.
Plans for overseas expansion backed up by interest from the global tech firms including Chinese behemoth Tencent, have helped see Afterpay become one of Australia's top 20 companies in terms of market capitalization in recent months.
In May, it was revealed that Tencent had purchased a 5-percent stake in Afterpay, valued at roughly 300 million Australian dollars, giving the company's stock price a further boost.
Afterpay reiterated global expansion plans in its FY20 results announcement, with growth so far strongest in the U.S. market which saw a 330 percent increase in underlying sales compared with the year before.
Company co-founder, Anthony Eisen said that BNPL providers like Afterpay had deliberately ridden a wave of more conservative consumer practices and a shift away from traditional credit over the past decade which intensified during the COVID-19 pandemic.
Eisen asserted that compared to other BNPL firms and credit providers, Afterpay places less burden on the customer, taking more of its revenue from merchants, capping late payments which do not accrue over time, and dealing mostly in smaller transactions of around 100 U.S. dollars.
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