On Monday, Zip Co provided a trading update for the first four months of FY21. The Afterpay rival once again delivered record results across all regions – including Australia, New Zealand and the United States.
Highlights of the update included:
Year to date BNPL revenue was $96.7m (up 91%) for the first four months of the year, with October monthly revenue accounting for $27.6m.
Including the Zip Business, FY21 YTD total revenue on a pro forma basis was $100.2m, with $28.4m recorded in October.
There were record transaction volumes in October of $401.1m (up 104% YoY), with the company now annualising at $4.8bn+.
Customers also increased to 4.8m (up 109% YoY) and global merchants on the platform now exceed 36.5k (up 74% YoY).
Zip US, under the QuadPay brand, delivered record results across all key metrics including $160.6m in transaction volumes (up 200% YoY), $11.4m in revenue and more than 2.5m customers.
Zip also reported stand-out performance of its App, finishing at #25 in the Shopping category in the US App store with 328,000 downloads in October. And currently achieving 15,000 daily downloads.
The results come a week after the Zip welcomed the release of ASIC’s Report 672 into the “Buy Now Pay Later” sector. Zip actively participated in the report’s preparation, providing ASIC with several rounds of internal data. Peter Gray, Zip’s Co-founder and Chief Operating Officer, said:
"As the report confirms, there are different BNPL providers in Australia with different business models and different ways of engaging with consumers. Many of these models rely on late fees to make the economics work. Zip’s is clearly differentiated from these business models.
Our industry is developing a Code of Practice which we believe will lift industry standards. Zip has been a key player in developing this code and ASIC’s report will inform the Code’s further development.
However, while we believe the Code is a very good start, Zip will continue to implement its own higher standards, particularly around customer suitability. This is in line with our
values of transparency and responsibility, which continues to deliver superior consumer