- Shares in Zip Co (Z1P) spiked this morning after a stellar business update for the first four months of the 2021 financial year
- The buy now, pay later stock tabled almost $97 million in revenue from the start of July to the end of October — an increase of 91 per cent on last year
- Zip's transaction volume grew 140 per cent compared to the same time last year to a record $401.2 million
- All of this was underpinned by a major boost in total customers, which more-than-doubled on the same time last year to 4.8 million
- Zip says its U.S. mobile app is performing well, averaging 15,000 downloads per day over the month of November so far
- Company shares spiked over 4 per cent this morning but have since retreated back towards the grey line, currently up 0.2 per cent and worth $6.20 each
Shares in Zip Co (Z1P) have spiked this morning after a stellar business update for the first four months of the 2021 financial year.
The buy now, pay later (BNPL) competitor is touting some impressive growth figures, tabling $96.7 million in revenue from the start of July until the end of October — a 91 per cent increase on the same time period last year.
Of this, $27.6 million of BNPL revenue came from the month of October alone.
Going hand-in-hand with the revenue boost is Zip's record transaction volume over October, up 140 per cent year-on-year to $401.2 million. Zip now annualises over $4.8 billion in transactions.
This is all underpinned by a major boost in total customers, which more-than-doubled compared to the same time period last year. For the first four months of FY21, Zip reached 4.8 million customers and 36,500 merchants — up 109 per cent and 74 per cent on last year, respectively.
While Zip's arrears may continue to be an area of concern for investors, the company said in Australia, monthly arrears reduced from 1.33 per cent to 0.89 per cent. This is an "outstanding" result given the current economic climate, according to Zip.
Zip's Managing Director and CEO, Larry Diamond, said the company is happy to be reporting another record month across all its key metrics as it launches into the final quarter of the year.
"We finished the October month processing over $400 million in transaction volume, with November now seeing annualised volume in excess $5 billion per annum," Larry said.
"All regions are trading very strongly, and the U.S. is now seeing more than 15,000 downloads per day — more than five million users have now downloaded our apps worldwide," he said.
Speaking of the Zip mobile app, the company said it finished October at number 25 in the shopping category of the U.S. App Store, with 328,000 downloads recorded in the month of October alone. So far in November, the app has had 15,000 average daily downloads.
Importantly, Zip has also launched a Chrome extension for its services, which lets users pay for products using Zip's services on any website through the Google Chrome web browser. This is something the company claims no other BNPL player has done.
Other notable Zip achievements from the four-month period include Zip's purchase of U.S.-based BNPL company Quadpay, and the launch of Zip's Tap & Zip feature, which lets Zip Pay be used in any store that accepts Visa.
Zip shares spiked 4.37 per cent this morning shortly after market open, but have since pared back the better part of their gains. At 11:40 am AEDT, shares in Zip Co are up 0.2 per cent and worth $6.20 a pop.