HotCopper users are today celebrating Zip Co Limited’s (ASX:ZIP) first-quarter results after the buy now, pay later digital financial services company scored several big revenue wins through its ongoing U.S. expansion push.
Zip has rocketed 9.32% to $3.05 a share at 10.40am AEDT this morning after confirming an “outstanding” 233.7% increase in EBTDA compared to this time last year.
The Australian financial company made $31.7 million through FY25’s first stanza.
Most of the victory comes from a boost in Zip’s state-side operations, where partnerships with GameStop, Cathay Pacific, and Major League Baseball ticketing (through Tickets.com) all contributed to a 22.8% lift in transaction volume. Revenue from the U.S. is now clocking at US$92.1 million annually – and HotCopper users are very excited.
“Looking good… very good numbers!” one user declared on Tuesday, while others suggested it was “pretty amazing” the digital financial services company had managed to drop net bad debt while still increasing active customers.
Another wrote: “I’ve read the whole report and can’t see anything bad about it. Massive result. More growth in the U.S. than expected in revenue, customer numbers…”
Zip Group CEO and Managing Director Cynthia Scott was similarly quite happy.
“Our U.S. business continued to deliver outstanding growth… driven by ongoing engagement in higher-margin channels such as the app,” Ms Scott said.
“Our team is committed to fulfilling Zip’s refreshed purpose and is aligned on our refreshed mission ‘to bring exceptional experiences, innovation and partnership to every financial journey’. Zip remains focused on delivering its FY25 priorities of growth and engagement, product innovation, and operational excellence.”
This U.S. windfall continues a very solid bull run for Zip Co, with the company’s share price having risen more than 913% since this time 12 months ago.
In August, the Aussie financial service company teamed up with Stripe overseas.
Join the discussion. See what HotCopper users are saying about Zip Co and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.