BNPL pioneer Zip says latest results are on target
Buy now, pay later pioneer Zip Co today announced its second quarter results for the three month period ending 31 December 2022.
Highlights of their numbers included record group quarterly revenue of $188.0m (up 12% YoY), record transaction volume for the quarter of $2.7b (up 22% QoQ) and record transaction numbers for the quarter of 22.6m (up 15% QoQ).
As at 31 December, Zip had available cash and liquidity of $78.5m which is expected to be sufficient reserves to support the company through to cash EBTDA profitability.
Commenting on the results, Zip Co-Founder, Global CEO and Managing Director, Larry Diamond said, “We are very pleased to deliver another strong quarter of record volumes despite the challenging external environment and adjustments to our risk settings. During the quarter Zip continued to make great progress on the strategy to deliver sustainable growth, right-size our global cost base and accelerate our path to profitability.
“It was very exciting to onboard great brands such as Uber, Jetstar and eBay to our payments platform in Australia and deliver positive cash EBTDA for the US business in November and December, including very strong results on credit performance. We also made great inroads to our liability management retiring $70m of convertible notes in a highly accretive transaction.
“We continue to provide increased benefits to both customers and merchants in today’s high-cost environment and are well-positioned for any potential future regulatory changes. The underlying business remains strong, and we are pleased with the benefits and reduction in cash burn from the ongoing simplification of the business footprint and focus on core products and core markets.
“In the current environment of heightened inflation and cost of living pressures, Zip continues to provide a simple, fair and easy to use product that customers can use everywhere and every day, creating a world where people can live fearlessly today, knowing they’re in control of tomorrow,” Diamond ended.
Zip stated that it continues to deliver solid top line metrics with strong results across its consumer operations in its core markets the United States and ANZ, despite growth being tempered by adjustments to internal risk settings, as well as the external environment.
Results for the rest of the world were impacted by actions to close Zip’s businesses in the UK, Singapore and Mexico as part of the strategic review.
Zip also stated that it continues to focus on its strategic objectives of delivering sustainable growth in its core markets (ANZ and the US), unit economics and cost management, and is on track to deliver group positive cash EBTDA during H1 FY24.
