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Highlights
- Zip reported quarterly revenue of AU$160.1 million, up 27% Y-o-Y for the period ending 30 June 2022.
- The company's transaction volume, numbers and customer numbers also increased during the same period.
- During the quarter, Zip signed deals with Bed Bath & Beyond and Qantas.
BNPL firm Zip Co Limited (ASX:ZIP) today (July 21) shared its financial results for the fourth quarter ending 30 June 2022.
Shares of Zip were trading 3.76% higher at AU$0.69 each at 1.09 PM AEST. This outperforms ASX 200 Index, which was 0.037% up at 6,761.70 points at the same time.
Zip reported quarterly revenue of AU$160.1 million, up 27% Y-o-Y and the company’s revenue margin remained healthy at 7.5%, which was 7.8% in Q3.
The company's transaction volume, numbers and customer numbers increased to AU$2.2 billion (up 20% YoY), 19.4 million (up 37% YoY), and 12 million (up 64% YoY), respectively.
During the quarter, Zip signed important commercial deals, including Bed Bath & Beyond in the US and Qantas in Australia. The company informed that Best Buy was launched throughout the quarter, while eBay is anticipated to launch in Australia in the upcoming months.
At 2.4%, the cash transaction margin remained high as compared to 2.3% in Q3.
The AU$278.6 million in cash and liquid assets that Zip had on hand as of 30 June should have been enough to see the company through to cash EBTDA profitability. With a debt funding capacity of AU$396.9 million in Australia and 183.1 million in the US available to fund transaction and receivables growth, the company is still in a strong position.
Zip Co-Founder, global CEO and MD, Larry Diamond commented:
Q4 business update
Earlier this month, Zip declared that Sezzle (ASX:SZL) and Zip had mutually decided to halt the intended acquisition of Sezzle by Zip due to the macroeconomic and market circumstances at the time.
Despite growth being restrained by a decline in consumer sentiment and adjustments to risk settings, Zip continues to generate good top line metrics with strong performance throughout its consumer operations in the United States, Australia, New Zealand, and the Rest of the World.
Image Source: © Tanaonte | Megapixl.com
Bottomline
The demand for Zip's products from new and existing clients is rising at a steady pace.
Zip continues to offer daily value and benefits in managing budget and lifestyle in a world where consumers are under pressure from the rising cost of living, and customers are transacting at an expanding range of merchants. Customers of Zip AU transacted at over 450k locations during the quarter, capturing both routine and discretionary spending.
