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Highlights
- Zip’s shares closed in red territory on the ASX today (7 November).
- The company, in its Q1 FY23 results, shared that it has generated a revenue of AU$620 million in FY22.
Shares of the Australian fintech company Zip Co Limited (ASX:ZIP) closed Monday’s trading session in the red territory today (7 November). Zip was last quoted at AU$0.650 apiece, down 1.515% on the ASX.
The factors weighing on Zip’s shares today could be the subpar performance of both the financial and tech sectors. The benchmark S&P/ASX 200 Financials sector was 100.7 points down at 6,387.3 points, and the S&P/ASX 200 All Technology sector has declined by 1.199% to 2,052.3 points as of 3:14 PM AEDT, 7 November.
Why has Zip been in news lately?
Zip reported its financial results for FY22, and a peek into the commencement of FY23, in its AGM insights published on 3 November. Zip’s total trading value (TTV) for FY22 was AU$8.7 billion, up 51% on a year-over-year (YoY) basis. In addition, the Buy Now, Pay Later (BNPL) business’ TTV increased by 15%, up from AU$1.9 billion in Q1 FY22 to AU$2.2 billion in Q1 FY23.
Zip's shares have decreased by 84.99% on a year-to-date (YTD) basis and by 89.40% over the course of a year, despite the company ending FY22 and beginning FY23 on a favourable note (2:57 PM AEDT).
How did Zip's AGM presentation play out?
FY22 highlights:
- In FY22, Zip’s revenue climbed by 57% YoY to AU$620 million, with the total number of customers reaching 11.4 million, up 56% YoY.
- The company saw a 77% YoY increase in its total merchant partners to 91,000.
- Zip partnered with the United States’ leading retailers, including Best Buy and Bed Bath & Beyond, during FY22.
- In Australia, the company strengthened its position in the travel industry by collaborating with Qantas and Virgin Australia.
- Zip also established a partnership with eBay Australia in the fiscal year.
- Zip reported AU$28 million EBTDA during FY22 in the Australian market, an increase of 250% YoY.
Q1 FY23 highlights:
- Zip’s core market total trading value was up 8% on a month-over-month basis, from AU$688.7 million in September to AU$745 million in October.
- The total trading value for the quarter was 15% higher (YoY), having increased from AU$1.9 billion in Q1 FY22 to AU$2.2 billion in Q1 FY23.
- The number of active customers saw an increase of 17% YoY from 6.3 million in Q1 FY22 to 7.4 million in Q1 FY23.
- The company’s total revenue increased from AU$136.8 million in Q1 FY22 to AU$163.2 million in Q1 FY23.
- Zip’s total number of transactions during Q1 FY23 saw a 33% increase.
- The revenue margin was 7.4% in Q1 FY23, up from 7.1% in Q1 FY22.
