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.

Zip share price: Everything you need to know about the October update

We look at the highlights from the company’s October trading update.

The Zip (Z1P) share price spiked and then levelled off as Monday’s session wore on, after the company released its October trading update to the market.

This comes even after the company delivered another set of record results, notching up impressive operational performances across all of its key regions, including the United States, Australia, and New Zealand.

Overall, for the first four months of fiscal 2021, the company reported total revenues of $96.7 million, representing an impressive year-over-year increase of 91%. For reference, in October alone, Zip's revenue came in at $27.6 million.

These top-line results were underpinned by strong merchant growth, with the company in October recording transaction volumes of $401.1 million (+104% year-over-year), implying annualised transaction volumes of $4.8 billion.

Zip's US operations saw an even more pronounced acceleration in October, with QuadPay reporting total transaction volumes of $160.6 million (+200% year-over-year) and $11.4 million in revenues.

Elsewhere, Zip said its total customers currently sit at 4.8 million (2.5 million of which are US-based) while total merchants are above 36.5 thousand.

Looking at the company's credit performance, in Australia, Zip's monthly arrears fell to 0.89% in October, down from 1.33% in June, a result which the company described as ‘outstanding’ given the current economic situation.

Looking ahead, Zip’s MD and CEO, Larry Diamond said:

'We would like to wish all our merchant partners a strong trading period over the Black Friday – Cyber Monday weekend and into Christmas and Boxing Day. It has been a very different year for many businesses, large and small, online and offline, and we hope this quarter brings positivity and good cheer throughout.'

With the above in mind, it was also noted that 'The momentum across the Company has continued in November with all regions set to deliver step change month-on-month growth.'

How the market reacted

Despite another record period, the market responded with little enthusiasm, with the stock trading flatly and finishing out the session at $6.20.

RBC analysts, which have an Outperform rating and $10.00 price target on Zip, attributed the market response to the company’s local performance, saying:

‘The ANZ business is likely weighing slightly on the share price reaction in our view.’

RBC went onto note that these muted revenue growth rates imply that the ‘revenue margin has again slipped through October (no receivables figure provided to compare yield), which sees a continuation of this trend. That said, 2Q is usually a seasonally weaker quarter for revenue yield.

Want to take a position in Zip – long or short?

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.

Act on share 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
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.