Zip delivers strong EBTDA driven by US momentum and growth

Zip Co have announced its results for the quarter ending 30 September 2024 (“1Q25”).

Zip achieved Group Cash EBTDA of $31.7 million (up 233.7% vs 1Q24), driven by a particularly strong performance in the US business. Zip US delivered Total Transaction Volume (“TTV”) of US$1,301.8 million up 42.8% vs 1Q24 and revenue of US$92.1m, an increase of 43.9% vs 1Q24.

Zip Group CEO and Managing Director, Cynthia Scott (pictured) said, “Zip has continued to drive scale and deliver significant operating leverage in FY25, with the team delivering a Group Cash EBTDA result of $31.7m, up 233.7% vs 1Q24. When compared to 1Q24, Group revenue for the quarter grew by 18.8% and Group TTV grew by 22.8%.

“Our US business continued to deliver outstanding growth, with TTV up 42.8% and revenue up 43.9%, versus 1Q24, driven by ongoing engagement in higher-margin channels such as the App. In ANZ, the yield on receivables increased to 19.2% driven by strategic portfolio management actions, and excess spread expanded to 6.9%, a very strong result in the current high interest rate environment.

“During the quarter, we refreshed our Purpose to ‘unlocking financial potential, together’, to better reflect Zip’s strategic priorities and our growth opportunity. Our team is committed to fulfilling Zip’s refreshed Purpose and is aligned on our refreshed Mission ‘to bring exceptional experiences, innovation and partnership to every financial journey’. Zip remains focused on delivering its FY25 priorities of growth and engagement, product innovation and operational excellence.”