Key points
- Zip delivers strong growth across its operations during the second quarter
- This led to record quarterly transaction value and revenue
- Zip’s customer numbers reached 9.9 million at the end of December
The Zip Co Ltd (ASX: Z1P) share price will be on watch this morning.
This follows the release of the buy now pay later (BNPL) provider’s second quarter update.
Zip share price on watch after record second quarter result
The Zip share price will be in focus on Thursday after the BNPL provider reported further strong growth during the second quarter.
According to the release, Zip posted a 53% year on year increase in quarterly transaction volume to a record of $2.6 billion. This was driven by transaction volume growth of 64% to $1,161.2 million in the USA, 39% to $1,273.7 million in the ANZ region, 118% to $121.5 million in expansion markets, and transaction value of $32.3 million in the UK.
Playing a key role in this transaction growth was another jump in customer numbers. They grew 57% to 9.9 million. This was driven predominantly by its USA business, which recorded a 78% lift in customers to 5.7 million.
This ultimately underpinned record quarterly revenue of $167.4 million, which was up 58% over the prior corresponding period.
At the end of the period, Zip Australia had $431.9 million undrawn and available to fund receivables. Whereas Zip US had US$140.1 million undrawn and available to fund US receivables. Management believes this leaves it well placed with regards to its capital management requirements.
Zip Managing Director and Global CEO, Larry Diamond, said: “Some solid growth in the quarter as Zip delivered another very strong set of numbers. The business continues to execute on its strategy with growth driven by both customer and merchant acquisition, and the increasing levels of engagement as we pursue our mission of becoming the first payment choice everywhere and every day.”
“The growing contribution from expansion markets is pleasing and should continue to build in the medium term in line with Zip’s global strategy. Despite external noise and challenges the business continues to deliver and we are very well placed to continue the growth and momentum in 2022,” he added.
The post Zip (ASX:Z1P) share price on watch amid record second quarter performance appeared first on The Motley Fool Australia.
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More reading
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- Zip (ASX:Z1P) will become the largest pureplay BNPL on the ASX this week. What might this mean for shareholders?
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- The Zip (ASX:Z1P) share price had a year to forget in 2021
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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