- Zip is making headlines as it shares its Q2 results for the period ending 31 December 2021.
- Despite challenging situations, the company delivers record group quarterly revenue of AU$167.4 million (rise of 58% YoY).
- The growth delivered by the company in the quarter is driven by customer & merchant acquisition, along with the increasing levels of engagement.
ASX-listed Australia based buy now, pay later (BNPL) operator Zip Co Limited (ASX:Z1P), on 20 January 2022, shared its Q2 results for the period ending 31 December 2021. The company revealed that despite challenging situations, Zip delivered another robust set of numbers with growth driven by customer and merchant acquisition, along with the increasing levels of engagement.
The BNPL provider has demonstrated powerful performance in countries like Australia, Canada, New Zealand, the United Kingdom, and the USA. The business has its presence in the Philippines, Poland, Saudi Arabia, Singapore, South Africa, Czech Republic, India and Mexico.
In its Q2 FY22 highlights, the company revealed:
- Quarterly revenue of AU$167.4 million (up 58% YoY).
- The quarterly transaction volume of AU$2.6 billion (up 53% YoY).
- Transaction numbers for the quarter at AU$22.4 million (up 85% YoY).
- Customer numbers increased to 9.9 million (up 57% YoY).
- Merchants on the platform increased to 81.8k (up 110% YoY).
- The Group achieved a target of over $50 million transaction volume a month from expansion markets (and Payflex) in both November as well as December.
- Zip inked enterprise merchants including Footlocker, Swappa, Electronics Express, Mercari, Revolve, Nespresso, Virgin Australia, Shein, Driven Brands, Culture Kings, Under Armour Oscar Wylee and various others.
- Zip concluded the acquisition of Twisto, besides the acquisition of Payflex, is expected to be completed in early 2022.
- The company amended the Variable Funding Note (VFN), extending its maturity to March 2024. Increased the facility limit to AU$535.4million (from AU$513.7million).
Meanwhile, the stock was spotted trading 1.093% lower at AU$3.620 at 11:20 AM AEDT.
Commenting on this development, Zip’s Managing Director and Global CEO Larry Diamond said that the growing contribution from expansion markets is pleasing and should continue to build in the medium term in line with the company’s global strategy. Nonetheless, the company has said that it is well placed to continue the growth and momentum in 2022.