Zip shares surge as transactions, revenue swell

The news: Zip is a step closer to a profitable year after the buy now pay later play posted solid gains in quarterly earnings, transactions and customer numbers in an update.

The numbers: Zip's transactions were worth $2.8 billion in the quarter to December, up 8.5% on the same period in 2022. It posted quarterly revenue of $225.6 million, up 26.1% on the previous corresponding quarter. Revenue margin also improved to 8.2%, up from 7.1% the year before. Zip Americas revenue jumped 34.8% on the PCP. Zip shares surged 9.5% in early trading and were fetching $0.694 by 10:30am AEDT. It now has 6.3 million active customers.

The context: Zip is beginning to reap the rewards of its restructuring program, which centred around divesting from unprofitable markets to focus on core businesses in the United States, Australia and New Zealand. Zip has yet to post a profit, but in 2023 it narrowed its statutory net loss from $1.1 billion the year before to $414 million.