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- Zip Co (ZIP) reports a 12 per cent year-on-year increase in group revenue to $188 million for the second quarter of FY23
- The buy now, pay later company also delivered a record transaction volume of $2.7 billion and a record 22.6 million transactions for the three-month period
- Over the quarter, Zip onboarded new merchants in Australia and the US, including eBay AU, Uber, Jetstar and Barnes & Noble College
- The fintech stock ended the quarter with $78.5 million in cash and liquidity, which it deems sufficient to support it through to profitability
- Nevertheless, ZIP shares are down 10.78 per cent to trade at 74.5 cents at 1:24 pm AEDT
Shares in Zip Co (ZIP) slumped on Tuesday despite the fintech stock reporting a 12 per cent year-on-year (YoY) increase in quarterly revenue for the three months to December 31, 2022.
Zip today released its unaudited financial results for the second quarter of the 2023 financial year.
The buy now, pay later (BNPL) company said the record $188 million in group revenue for Q2 FY23 came despite a “challenging external environment” and adjustments to its risk settings.
Zip Co also announced a record transaction volume of $2.7 billion, representing a 22 per cent increase on the September quarter. Further to this, transaction numbers also hit a record 22.6 million, up 15 per cent on the prior quarter.
Leading the charge were Zip’s core US and Australia and New Zealand markets, with results from the rest of world (RoW) impacted by actions to close Zip’s businesses in the UK, Singapore and Mexico as part of a strategic review.
Zip Co-Founder, Global CEO and Managing Director Larry Diamond said he was pleased to deliver another “strong quarter” of results.
“During the quarter, Zip continued to make great progress on the strategy to deliver sustainable growth, right-size our global cost base and accelerate our path to profitability,” Mr Diamond said.
“We continue to provide increased benefits to both customers and merchants in today’s high-cost environment and are well-positioned for any potential future regulatory changes.”
In Australia, Zip went live with new enterprise merchants, Jetstar, Uber and eBay AU, and in the US, it launched with Barnes & Noble College across all campus stores.
“It was very exciting to onboard great brands such as Uber, Jetstar and eBay to our payments platform in Australia and deliver positive cash EBTDA for the US business in November and December, including very strong results on credit performance,” Mr Diamond stated.
In total, merchants on the BNPL platform increased to 97,500, which marks a 19 per cent YoY jump.
By the end of the year, Zip had $78.5 million in available cash and liquidity, which the company expects will be sufficient enough to support it through to profitability.
Nevertheless, ZIP shares were down 10.78 per cent to trade at 74.5 cents at 1:24 pm AEDT
