- Zip Co (ZIP) posts a 15 per cent year-on-year (YoY) increase in transaction volumes to $2.2 billion for the September quarter
- This supported the fintech stock’s quarterly revenue result of $163.2 million, representing a 19 per cent YoY increase
- Zip also experienced increased transaction and customer numbers as well as new merchants, such as Hoyts and Jetstar, who’ll be offering its buy now, pay later service
- Global CEO Larry Diamond says that following a strategy refresh, Zip is “well funded and positioned to execute ahead of seasonal peak volumes and beyond into H2 FY23”
- Company shares are up 3.13 per cent and trading at 66 cents at 2:17 pm AEDT
Zip Co (ZIP) has announced a 19 per cent year-on-year (YoY) increase in group revenue for the three months to September 30.
The fintech stock experienced a 15 per cent YoY increase in transaction volumes to $2.2 billion which helped drive the quarterly revenue result of $163.2 million.
Transaction numbers were also up 33 per cent YoY to 19.6 million, along with a 50 per cent increase in customer numbers to 12 million in total.
Furthermore , Zip Co welcomed new merchants to its buy now, pay later service. This took the total merchant to around 94,100, representing a 70 per cent increase on the same time last year.
Key merchants who either signed or launched in the September quarter include Hoyts in Australia and Barnes and Noble College in the US. eBay AU went live this month and Australian airline Jetstar is set to launch during this quarter, in time for the holiday travel season.
At the end of the quarter, Zip had $140.7 million in cash and liquidity.
Global CEO and Managing Director Larry Diamond said these are a “solid set of numbers” as the company moves toward positive cashflow.
“During the quarter we made great progress on our refreshed strategy to deliver sustainable growth, right-size our global cost base and accelerate our path to profitability,” Mr Diamond said.
“We continue to add new customers to the platform and provide increased benefits to both customers and merchants as they navigate a rising cost environment.
“The underlying business remains strong, and with the simplification of the business following adjustments to strategy, we are well funded and positioned to execute ahead of seasonal peak volumes and beyond into H2 FY23.”
Mr Diamond recently relocated to the US which is considered a “significant and early stage opportunity” for the company. Zip Co believes his on-ground presence supports its goal to scale its business and drive long-term growth in the US market.
ZIP was up 3.13 per cent to trade at 66 cents at 2:17 pm AEDT.