Zip Co seals record quarterly revenue
Zip Co (ASX: Z1P) CEO Larry Diamond says the fintech’s business model has proved “extremely resilient” through the COVID-19 pandemic, achieving record revenue of $46.4 million in the fourth quarter of FY20.
This represents a 72 per cent year-on-year rise, compared to a 91 per cent jump in revenue overall for the financial year to $161.2 million.
The buy-now-pay-later (BNPL) company’s market capitalisation has risen by more than $1.4 billion since announcing an acquisition deal with New York-based QuadPay in June.
Customer numbers have also jumped 63 per cent to 2.1 million, while new merchants came on board with the platform in Australia during the fourth quarter including Cotton On, Canon and Greencross Vets, along with brands like Sony and Bunnings in New Zealand.
“The business model was tested during COVID-19 and proved extremely resilient – in terms of transaction volume, strong revenue mix and outstanding customer repayment performance,” says Diamond.
“Our product differentiation, strong proprietary credit platform and penetration into defensive, everyday spend categories delivered in spades.
“Pleasingly, we beat the goals we set for the Company in 2019 with a target of $2.2 billion in annualised transaction volume, which was supported by a number of marquee merchants and a top-10 rated app.”
To read more, please click on the link below…
