Katapult Holdings (KPLT) is a buy now, pay later (“BNPL”) company that has recently gone public through a reverse merger with FinServ Acquisition’s SPAC. KPLT has seen explosive revenue growth, and its stock is trading at ~1/6th the multiples of its competitors. With impressive financial performance and a highly discounted stock price, Katapult is an intriguing investment opportunity for the long-term investor.
KPLT provides BNPL solutions for nonprime Ecommerce customers. Its platform is fast and efficient, allowing customers to get approved for financing in under five seconds and merchants to access millions of potential new customers with no added risk. Plus, the company has a Net Promoter Score of 58 and a 4.4 rating on Trust Pilot.
In its first quarter as a publicly traded company, Katapult exceeded expectations, generating $82M in revenue and $14.7M in adjusted EBITDA. The company also provided forward guidance of $375-425M in gross originations, $425-475M in revenue, and $50-60M in adjusted EBITDA for 2021.
The key to Katapult’s investment thesis is its valuation. When compared to other FinTech companies, KPLT is trading at 1/5th their valuations despite growing revenue at more than twice the pace. With such a low valuation, Katapult is an attractive proposition for investors who are looking for a “heads I win, tails you lose” scenario.
Katapult’s future prospects are also promising. A study from Juniper Research suggests that BNPL transactions will grow from $226B in 2021 to $995B by 2026, and 55% of Americans have used a BNPL option as of March 2021. With the company’s increasing customer base, expanding profit margins, and impressive financial performance, Katapult is well-positioned to capitalize on the growing BNPL market.
In conclusion, Katapult Holdings (KPLT) is a great stock to invest in for the long-term investor. With explosive revenue growth, impressive financial performance, and a highly discounted stock price, Katapult is a “heads I win, tails you lose” investment opportunity. The company has a strong foothold in the BNPL market and is well-positioned to capitalize on the growing industry.
