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Zip CO (ASX:Z1P) - CEO, Larry Diamond
CEO, Larry Diamond
Source: Zip Co
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  • Buy now pay later (BNPL) stock Zip Co (Z1P) is reporting a huge blow out in loss, jumping from $20 million in FY20 to $652 million at the end of FY21
  • The net loss attributable to shareholders represents a more than 3000 per cent increase year on year, as Zip spends close to $1 billion on investments
  • The company did record a 150 per cent increase in revenue to $403 million, as well as $5.8 billion in sales from 7.3 million customers
  • Zip launched in the US during FY21 through its $403 million purchase of QuadPay, with the BNPL stock ending the year with 4.4 million US customers
  • The company’s share price is down 0.96 per cent at $7.25 per share at 12:02 pm AEST

Buy now pay later stock Zip Co (Z1P) has reported a huge blow out in loss, jumping from $20 million in FY20 to $652 million at the end of FY21.

That represents a more than 3000 per cent increase year on year to the net loss attributable to Zip shareholders.

The loss comes as the BNPL business spent big on investments across the year as it launched in the US, through the $403 million purchase of QuadPay.

All up, the fintech stock spent $938 million on investment activities over Fy21 and ended the year cashflow positive with $330 million in the bank.

In terms of sales, Zip recorded a 150 per cent increase in revenue to $403 million, as well as a total of $5.8 billion in transactions.

The company said it now had a total of 7.3 million customers across the globe, a 248 per cent increase from Fy20’s figures.

Its number of bad debts dropped over the last year, with Zip reporting that doubtful debts as a percentage of underlying volumes fell from 2.6 per cent to 2.1 per cent.

Additionally, the number of net bad debt write‑offs remained consistent at 1.3 per cent of underlying volumes.

Commenting on today’s results, Zip CEO Larry Diamond said it had been a transformational year.

“This has been a truly transformational 12 months as the business has
continued to deliver, despite the most exceptional global economic
conditions,” Mr Diamond said.

“We fearlessly started the year with a clear strategy for both local growth and global expansion, and pleasingly, 12 months later, we are delivering on this plan, with record growth across all metrics in all jurisdictions, with Zip now operating in 12 countries across five continents.”

Following today’s loss news, shares in Zip were trading down 0.96 per cent at $7.25 per share at 12:02 pm AEST.

Z1P by the numbers
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