Skip to content

CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Can Zip's share price rise on record first-half results?

Australian BNPL platform Zip just posted impressive half-year results on the back of a record performance in the US market.

Source: Bloomberg

The share price of ASX-listed buy-now-pay-later (BNPL) company Zip (ASX: ZIP) could see gains on the back of a strong performance in the first half of FY24.

Zip managed to achieve a profitable half on the back of a leap in revenue and strong seasonal performance for its stateside operations. CEO Cynthia Scott says the company has now set its sights on underserved financial consumers in the US market.

Revenue leaps in H1 FY24

Zip's revenue posted a robust 28.9% rise in H1 FY24 to reach $430 million in total.

Revenue received a boost from a 5% rise in transaction numbers to 38.6 million, as well as a 9.6% rise in total transaction volume (TTV) to $5 billion. Zip's revenue margin rose 130 basis points to 8.5%.

Group cash EBTDA for the first half was $30.8 million, for a sharp reversal compared to losses of $33.2 million the year previously.

According to Zip, this shift was driven by improved margins and cost discipline, alongside a strong seasonal performance in the US market.

Zip Americas posted a record-high TTV OF $3.1 billion following a 33.3% increase, while revenue jumped 40.3% to $214.7 million.

Australia and New Zealand also saw impressive results, with a 22.7% jump in revenue helping to compensate for rising interest costs.

These robust performances for the six months ended 31 December alongside a number of positive one-offs helped Zip to post after-tax profits of $73 million for the half.

Zip's CEO and Managing Director Cynthia Scott hailed the results for the half as 'outstanding,' attesting to the company's 'consistent strong performance and continued successful execution of...strategic priorities.'

Balance sheet health improves

In addition to its strong revenue and profit results, Zip highlighted efforts to enhance the health of the company's balance sheet.

Zip obtained a new $150.0 million corporate debt facility, as well as an incentivised conversion and repayment of $40.0 million in outstanding CVI convertible notes.

The company also said it had engaged in continued deleveraging of its balance sheet, with the outstanding face value of its senior convertible notes falling to $68.8 million by the end of 2023, before further declining to $34.6 million by 23 February 2024.

Zip sets sights on US market

Zip is a BNPL fintech company with operations in Australia, New Zealand and the US. The company was founded in 2013 by Larry Diamond and Peter Gray as Zip Money, with the goal of providing customers with digital credit services. Its flagship Zip Pay and Zip Money products are digital wallets that enable customers to make BNPL transactions both online and in physical stores.

Zip embarked upon an ambitious expansion drive shortly after its founding. It listed on the ASX in 2015, and acquired Pocketbook, a highly popular finance app in Australia, the following year.

In 2017 Zip secured the support of Australia's big four banks, with Westpac making a $40 million investment in the company and National Australia Bank (NAB ) ponying up $200 million of a $260 million debt facility.

By the start of the 2020's Zip had set its eyes on global expansion. In June 2020, Zip acquired a $430 million equity stake in New York-based BNPL platform Quadpay, further expanding upon a prior 14% holding.

Given the strong performance of its state-side operations in the first half of FY24, Zip is heavily focused on the US market.

CEO Cynthia Scott recently said to The Australian that Zip is now focused on financial inclusion opportunities in the US, targeting 'underserved' American consumers.

'Zip is very well-positioned to capitalise on the near and medium term opportunities in our core markets of ANZ and the Americas and deliver greater value for our customers and merchants,' Scott said in the company's first half report.

Take your position on over 13,000 local and international shares via CFDs or share trading – all at your fingertips on our award-winning platform.* Learn more about share CFDs or shares trading with us, or open an account to get started today.

* Winner of 'Best Multi-Platform Provider' at ADVFN International Finance Awards 2022.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on stock opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.