Ayondo, which runs a social trading platform, has posted a second-quarter net loss of three million Swiss francs (S$4.2 million), doubling from a net loss of 1.5 million francs for the same period a year earlier.
The news overnight sent the stock tumbling yesterday. It lost nearly a third of its value, or 32.1 per cent, to end at 9.5 cents.
While Ayondo's number of active clients for the second quarter grew 6 per cent from a year earlier to 24,246, trading revenue slipped 9 per cent to 4.7 million francs. Average revenue per active client dipped 15 per cent to 193 francs.
"The decrease in revenue was mainly attributable to a change in the mix of clients, with an increase in the number of B2B (business-to-business) clients who have lower average revenues than other clients," the group said in its results filing.
Ayondo was listed on the Singapore Stock Exchange's Catalist board in March. Its financial performance for the second quarter was below its expectations at the time of the initial public offering (IPO), it said.
Hence, after reviewing its cash flow position, Ayondo redirected $1.511 million of its IPO net proceeds meant for platform enhancement and another $3.938 million that was to be spent on marketing, and utilised them for general working capital purposes instead.
AT A GLANCE
REVENUE: 4.7 million francs (-9%)
NET LOSS: 3 million francs (+100%)
The entire $18.5 million in net proceeds from the IPO has already been spent, the group said.
Loss per share was 0.006 franc, widening from 0.003 franc for the second quarter of last year.
Net asset value per share was 0.07 franc as at June 30, up from an illustrative 0.02 franc as at Dec 31.
Ayondo said that the group continues to focus on the growth of its B2B business in particular, while maintaining cost discipline.
It added that "scaling the business through client acquisition at low cost is at the heart of the fintech model and the group will continue to make strong progress in this regard".