How are Zip’s (ASX:ZIP) shares trading after quarterly update?

Highlights

Zip shares were trading at AU$0.65 per share, down 0.77% on ASX today at 1.33 PM AEDT.

On 20 October, Zip announced its Q1FY23 results for the three months ending 30 September 2022.

The group's quarterly sales rose 19% from the previous year.

Zip Co Limited’s (ASX: ZIP) shares were trading in the red on Friday despite no price-sensitive news shared by the company. The ASX-listed diversified financials company's shares were trading at AU$0.65 apiece, down 0.77% on ASX today at 1.33 PM AEDT. Zip operates in digital retail finance and payments industry.

On Thursday (20 October) Zip’s shares closed in the green, probably after the company announced its first quarter (Q1FY23) results for the three months ending 30 September 2022.

A look at the Zip's Q1FY23 report card

In its quarterly update, Zip announced that the group's quarterly sales were AU$163.2 million, an increase of 19% from the previous year.

Additionally, it stated that its transaction volume for the quarter was AU$2.2 billion (up 15% year over year), and its transaction numbers were 19.6 million (up 33% year over year).

Hoyts (in Australia) and Barnes & Noble College (in the US) are two of the company's main enterprise merchants that were signed or launched in the quarter. In time for the Christmas travel season, Jetstar will begin in Q2 after eBay AU went up in October.

Zip US exited the quarter with an anticipated loss rate of under 2% for the September cohort, in line with target levels, having seen credit loss rates drop to 2.4% of TTV (down from 2.7% in Q4 FY22).

On September 1, 2022, Zip retired AU$40 million in interest-bearing convertible notes and paid AU$43 million to CVI Investments Inc (CVI) out of the company's cash reserves.

Zip accomplished the refinancing of the 2020-1 Zip Master Trust series through completion of an enlarged AU$300 million debt offering.