Zip Co shares jump after lift in earnings guidance
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More news: Shares in Zip Co soared more than 16% to 35 cents in early trading on the ASX after the buy now pay later operator reported a strong performance in the September quarter and forecast a positive cash earnings result for FY 2024.
Zip Co lifts guidance after strong first quarter
The news: Buy now pay later operator Zip Co expects positive cash earnings for FY24 after reporting a jump in first quarter revenue.
The numbers: Zip said its first-quarter revenue rose 31.9% from a year ago to $204.4 million, while transaction volume was up 11% to $2.3 billion. Its revenue margin improved to 8.9% from 7.5%, and the company had 6.1 million active customer numbers at the end of September.
The context: Like other BNPL operators, Zip has been under pressure as customers pare back spending amid rising interest rates, and reported a hefty annual loss in FY23. However, the company has posted solid gains in its US and Australian operations in recent months after undergoing a dramatic restructuring. Chief executive Cynthia Scott said Zip still expects a positive cash earning before tax and amortisation result for the second half of 2024 and is now forecasting a positive cash earnings result for FY 2024.
The source: ASX announcement
