Zip Co Limited reported its financial results for the first half of the fiscal year 2024 (1H24), ending 31 December 2023, highlighting significant growth and improved financial performance across its operations. Key achievements include:
Group Cash EBTDA: $30.8 million, attributed to robust seasonal performance in US Total Transaction Volume (TTV), better margins, and stringent cost management.
Revenue: Increased by 28.9% to $430.0 million compared to the first half of 2023 (1H23).
TTV: Rose by 9.6% to $5.0 billion.
Transaction Numbers: Grew by 5.0% to 38.6 million.
Revenue Margin: Improved to 8.5%, up by 130 basis points (bps) from 1H23.
Net Bad Debts: Remained stable at 1.9% of TTV.
Cash Net Transaction Margin (NTM): Improved by 90bps to 3.5%, demonstrating resilience in a rising interest rate environment.
Cash Gross Profit: Increased by 45.9% to $176.2 million.
Merchant and Customer Growth: Merchant numbers increased by 9.3% to 76.2k, and active customer numbers increased to 6.3 million from 6.2 million in FY23.
The report also highlights the record performance of Zip Americas with significant growth in TTV and revenue, driven by strong seasonal volumes and profitable growth from existing customers. The ANZ region also showed resilience and growth, with the launch of a new product, Zip Plus, designed for a higher interest rate environment, expected to drive TTV and margin growth.
Zip's strategic priorities focus on driving sustainable profitable growth, product innovation, and operational excellence. The company has made significant progress in strengthening its balance sheet, including a new $150.0 million corporate debt facility and the reduction of outstanding Senior Convertible Notes.
This announcement is a summary of the company approved ASX announcement on 27/2/2024.