- Buy now, pay later company Zip Co (Z1P) announces $302.2 million in revenue for H1 FY22 which is an 89 per cent year-on-year increase
- Transaction volumes totalled $4.5 billion and transaction numbers came to 36.3 million, a 93 per cent and 147 per cent increase, respectively
- Zip expects to report a $108.1 million loss in EBITDA which it attributes to growth initiatives and expansion costs
- These are interim results and the billion dollar fintech stock expects to formally announce the half-year results on February 24
- Company shares are down 3.89 per cent to trade at $2.47
Buy now, pay later company Zip Co (Z1P) announced record revenue for H1 FY22 of $302.2 million which is an 89 per cent year-on-year increase.
The company will formally announce the half-year results on Thursday, February 24, however started this week off with an interim update.
In addition to strong revenues, Zip Co announced record transaction volumes of $4.5 billion which marked a 93 per cent increase to the prior corresponding period as well as record transaction numbers of 36.3 million, up 147 per cent on the pcp.
Z1P said this reflected customer benefits from Tap and Zip and engagement through initiatives such as its personalised rewards offering.
The billion dollar stock noted a 74 per cent increase in customers to 9.9 million and merchants on the platform increased to 81,800 which was a 113 per cent growth.
Zip Co also reported a healthy cash transaction margin of 2.1 per cent which it said reflected changes in business and geographic mix, as well as an increase in debts.
The company expects to announce a loss of $108.1 million in earnings before interest, tax, depreciation and amortisation which it attributed to investing in growth initiatives and expanding to become a global company.
Cash operating costs came to $204.5 million which reflected costs associated with engineering, marketing, and particular its global re-brand which reportedly contributed to Zip’s expanded global footprint. It now operates in 14 markets around the world.
As of December 31, 2021, the company had an available cash liquidity position of $212.5 million.
Subsequent to the half-year, Zip Co confirmed its intention to acquire fintech stock Sezzle (SZL) and merge however, they were clear that a deal hadn’t been struck and were simply in discussions.
Company shares were down 3.89 per cent to trade at $2.47 at 12:50 pm AEDT.