CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Why Zip skyrocketed 16.95% on Tuesday

The Zip share price rose firmly after the company released its Q3 trading update.

Zip share price ↑

The Zip (ticker: Z1P) share price closed out Tuesday’s session up 16.95% at $9.73 per share. This came after the company released an impressive set of growth figures as part of its Q3 trading update.

Volatility – both to the up and downside – has become commonplace for the likes of Zip and others in the buy now pay later space.

This Q3 trading update, which was laden with the word ‘record’, whipped the market into a frenzy by the close.

Overall, Zip revealed the quarter to be a particularly positive one – dominated by both strong top-line growth and the continued expansion of the company’s brand and ecosystem.

Let's take a quick look at these results:

Results Wrap

On the top-line, Zip said its quarterly group revenue rose 80% – coming in at $114.4 million. Q3 transaction volumes outpaced that, coming in at $1.6 billion, implying a year-on-year growth rate of 114%. Additionally, 12.4 million transactions were made through Zip’s platforms during the quarter – equal to a year-on-year growth rate of 195%.

The Zip ecosystem also continues to exhibit strong growth: customers now total 6.4 million and merchants using the company's platform hit 45.3 thousand during the quarter.

Broken down by region, Australia and New Zealand (ANZ) transaction volumes reached $837.3 million, while customer growth edged up 37%, to 2.6 million.

With ANZ being a significantly more mature market, Zip is able to lean on the growth from Quadpay (its fully-owned US business), which continues to see its growth accelerate.

Indeed, despite the company describing Q3 as 'seasonally quiet’, Zip US transaction volumes jumped a staggering 234% to $762 million and brought in $54.4 million in revenue. In addition to that, 674 thousand US-based customers joined the ecosystem during the quarter.

Watch This Space: With US growth ramping and ANZ growth decelerating, investors are likely now wondering how long it will be before Zip’s US business overtakes its ANZ one. The prize after all, as Afterpay signalled relatively early in the piece, was always the US market. Australia was merely a testing ground.

Other data points worth mentioning:

  • Bad debts edged dropped from 1.93% to 1.78%
  • 1.6 million app downloads were made in Q3

Commenting on the quarterly, Zip’s MD and CEO, Larry Diamond said:

'Our US business was again a standout, confirming our position as truly one of the fastest growing BNPL leaders.'

'We continue to innovate and deliver new features to our customers in line with our mission to become the first payment choice everywhere, every day.'

Others in the space seemed to piggy-backed off Tuesday’s Zip euphoria: Afterpay closed up 3% and Sezzle finished out the session up 8%.

YTD, Zip is up over 70%.

Trade BNPL stocks long and short with IG today.

Create an IG trading account or log in to your existing account to get started now.


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.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

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.