Zip shares plunge despite profit, revenue surge
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More news: Zip shares tanked in early trade even as the buy now pay later company reported a surge in first-half profit and reiterated its full-year guidance.
Shares were down 34.2% to $1.86 at 10:50am AEDT.
Zip posts profit surge on US growth
The news: Buy now pay later company Zip reported a 334.5% rise in first-half statutory profit to $66.3 million after US growth and an increase in revenue and a record total transaction value.
The numbers: Analysts were expecting to see profit of $55.2 million, according to Visible Alpha data.
During the prior corresponding period, Zip’s net profit fell 69% after its operating costs climbed to over 10%.
Total income for the first half was up 29% to $664 million, with total transaction volume (TTV) up 34%.
The context: Zip CEO Cynthia Scott said the company continues to “execute strongly” on its “US growth opportunity, with TTV and revenue up 44.2% and 46.4% respectively”, and active customers up 9.7% year on year.
Zip’s local business delivered a 138% year-on-year increase in cash earnings, supported by revenue and Australian receivables returning to growth with continued adoption of Zip Plus.
The source: ASX
