‘Ahead of our expectations’: Buy now, pay later fintech Zip breaks records
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Buy now, pay later company Zip Money has smashed records in customer engagement, transactions, and revenue in the December half, results show.
Compared to the 2017 December half, revenue was up 114 per cent to $34.2 million and transactions were up 110 per cent to $495.2 million.
And Zip (ASX:Z1P) managed to generate a net profit (before tax) of $2.4 million compared to a net loss $7.7 million in the December half 2017.
Overall, the fintech slashed its losses from $14 million to $6.7 million.
Zip says it now has more than 1 million customers and more than 12,500 merchants – including big players like Bunnings, Target, Officeworks, Super Retail Group and Chemist Warehouse — on its platform.
Despite its growth, reported arrears and net bad debts remained well below industry benchmarks, the company says.
The Zip share price – which has ranged between 75c and $1.44 over the past year — was up about 2.7 per cent to $1.30 by lunchtime EST.
Zip chief Larry Diamond says the company is beating its own expectations for the 2019 financial year.
“We saw record results across all key drivers: customer engagement, transactions, in-store volumes, revenue and bad debts,” Mr Diamond says.
“We are pleased to report that we are ahead of our expectations for FY19 and see significant growth ahead as our market penetration increases across the target verticals.
“Our investment in our credit technology, big data and strategic choices around upfront customer due diligence, has ensured we continue to build a robust and sustainable platform in the Buy Now Pay Later (BNPL) sector.”