The Internet has had a profound effect on our lives in a very short amount of time, fundamentally changing the way money moves around the globe. Money transfer services today represent a tremendous global market opportunity and Xoom (NASDAQ:XOOM) is a company investors will want to keep an eye on.
Xoom's most recent quarter was excellent by virtually every metric. Sales of $35.9 million and earnings per share of $0.06 both beat expectations. Beyond these great results, we can also see a business that is executing its strategy of focusing on its customer and growing its share of the remittance pie.
If investors take one thing away from Xoom's quarter, it's that 90% of the company's gross sending volume of $1.6 billion came from repeat customers. Furthermore, mobile transactions accounted for 45% of the total transactions for the quarter, representing growth of 59% over the same quarter last year.
Why does this matter? There are two reasons: first, Xoom is focused on bringing customers in and keeping them there by offering them service at a cost that no others can provide. With 90% of gross volume coming from repeat customers, it's clear the company is doing something right. And as mobile technology continues to grow, Xoom knows that mobile cohorts tend to have higher lifetime value for the company versus desktops, simplifying the process and encourages more transactions.
To be sure, Xoom faces a slew of competition vying for a piece of a tremendous global remittance market. But the company has done a great job of growing a loyal customer base in a short amount of time and as it continues to grow by adding new markets as well as ancillary services, this is a growth story that investors to which investors will want to pay attention.
Jason Moser has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.