- Zip Co (ZIP) posts group quarterly revenue of $193.8 million for Q4 FY23 – a 21.1 per cent increase compared to Q4 FY22
- ANZ revenue climbed 26.1 per cent compared to Q4 FY22
- This comes even as the cost of living crisis continues to pressure the consumer
- Meanwhile, Zip completed its divestments of non-core markets outside of the US and ANZ during Q4
- Zip Co shares are up 11.5 per cent, trading at 48.5 cents at 10:39 am AEST
Zip Co (ZIP) has announced its Q4 FY23 result, posting group quarterly revenue of $193.8 million – a 21.1 per cent increase compared to Q4 FY22.
Australia and New Zealand revenue reflected an increase of 26.1 per cent Year-on-Year (YoY), while US revenue was up 13.6 per cent YoY.
Total transaction volumes for the quarter clocked in at $2.3 billion, with the company noting its cash transaction margin (CTM) improved to 3.1 per cent even in the current interest rate cycle. Last quarter, CTM sat at 2.8 per cent.
The company is continuing to ditch all operations in markets outside ANZ and the US, completing its divestments in businesses in Central and Eastern Europe, South Africa, and the Middle East.
Zip is heading towards full-year profitability, suggesting that at a macroeconomic level, the phenomenon of the resilient consumer is also a tailwind for payment providers.
“We acknowledge that many consumers are doing it tough with the cost of living a challenge for many households,” Zip Global CEO Larry Diamond said.
“Pleasingly, this result was underpinned by strong revenue growth…as we finish FY23, I am excited to see the US business exit the year cash EBTDA positive on a monthly basis and very well positioned for sustainable growth in FY24.”
Meanwhile, Zip formed a new partnership deal with Peloton and Webjet in the ANZ region during Q4 FY23.
The company’s management also highlighted that the company welcomes new BNPL regulations in Australia.
Zip Co shares were up 11.5 per cent, trading at 48.5 cents at 10:39 am AEST.