The share price of buy-now-pay-later (BNPL) provider Zip Co Ltd (ASX: Z1P) has shot up 6% this morning after the business provided a November trading update.
Chief Executive Officer, Managing Director and founder Larry Diamond also commented on the Zip share price.
Z1P share price
Promising results going into the holiday season
Key highlights for the month of November include:
- Transaction volumes of $906.5 million, 52% year-on-year (YoY)
- Total transactions of 7.5 million, up 86% YoY
- Customer numbers of 9.2 million, up 71% YoY
From a regional standpoint, the United States (US) was the standout with payment volumes up 54%. This was closely followed by Australia, up 42%.
Its emerging markets segment, which includes Canada, Mexico, Twisto (Poland and the Czech Republic), Spotti (UAE and Saudi Arabia) and Payflex (South Africa), added $51.5 million in transaction volumes.
“Zip now has one of the largest BNPL footprints goegraphically with the aim of servicing its global merchants and partners in a simple and easy format” – Larry Diamond
Operational update
Zip’s brand awareness in the US has improved to higher levels than before the rebrand.
Formally, Zip traded under the Quadpay name in the US.
The business also added several new merchants including Microsoft Edge, Revolve, Virgin, Puma Fuel and Shein.
Notably, Zip signed an exclusive agreement with Singapore’s largest telco Singtel (also the owner of Optus), to support its new Singtel Dash app.
Zip has completed the acquisition of Twisto, providing a footprint for European expansion.
The Payflex acquisition is expected to be completed by early 2022.
Recently, Zip has added to its leadership team.
Ahu Chhapgarm, who has previously worked at Paypal Holdings Inc (NASDAQ: PYPL) and Mastercard Inc (NYSE: MA) will join as Global Chief Technology Officer.
Additionally, Cynthia Scott who has held roles at Scentre Group (ASX: SCG) and Telstra Corporation Ltd (ASX: TLS), will join as Managing Director of Australia and New Zealand.
CEO takes share price “very seriously”
Despite the underlying business growth of the past year, the Zip share price has deflated 21% as the market cooled on the prospects of the BNPL sector.
“Management and the Board would also like to acknowledge the significant volatilty in equity markets, the impact to technology and fintech valuations and is taking this very seriously. We enter CY 2022 with strong momentum, in a solid financial position, with continued focus on execution, unit economics and global synergies” – Larry Diamond, CEO and Founder
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