Zip Co Limited (ASX:ZIP), a digital financial services company that offers point-of-sale credit and digital payment services, has posted robust results for the quarter ending 30 September 2024, largely driven by a surge in US operations. The company reported a Group Cash EBTDA of $31.7m, marking a 233.7% increase compared to the same quarter in 2023. Revenue for the group rose by 18.8% year-on-year to $239.9m, while the total transaction volume (TTV) climbed 22.8% to $2.8bn.
In the US, TTV reached US$1.3bn, up 42.8% from the previous year. This growth was fuelled by a strategic focus on Zip’s app, which has driven customer engagement in higher-margin channels. Revenue from the US rose to US$92.1m, representing a 43.9% increase year-on-year.
Zip’s Group CEO and Managing Director, Cynthia Scott, stated: “Zip has continued to drive scale and deliver significant operating leverage in FY25… Our US business continued to show outstanding growth, with TTV up 42.8% and revenue up 43.9% versus 1Q24, underscoring strong customer demand and engagement in this market.”
Meanwhile, in Australia and New Zealand, Zip reported steady financials, with revenue largely stable at $102.5m. The portfolio yield improved to 19.2% as the company enhanced its credit management approach, achieving an excess spread of 6.9% in September 2024, even amid high interest rates.
Zip’s cash position also strengthened over the quarter, bolstered by a recent $217m institutional equity placement and an additional $50m from a Share Purchase Plan (SPP). As of 30 September, Zip’s cash balance stood at $341.5m.