Zip shares surge on improved cashflow update

The news: Zip shares have jumped more than 7% in early trading, after a second-quarter cashflow update underscored improving finances for the buy now, pay later play.

The numbers: Cashflows from customer receipts improved by more than 10% on the first quarter to total more than $431 million for the half. Net cash from financing activities also improved markedly, from $71.5 million in outflows in Q1 to $33 million in inflows in the second quarter. Zip shares were 7.5% higher by 10:30am AEDT, fetching $0.79 following the announcement.

The context: The cashflow update underscores Zip's strong result for the second quarter, which sent the credit provider's share price surging early last week. The second quarter is also marked by the contribution of new chief financial officer, ex-Westpac finance CFO Gordon Bell, who began with Zip at the start of October.