Looking at Zip’s balance sheet, the fintech business had just over $300 million in the bank at the end of March, with another $24 million hitting the company’s books in April from an undersubscribed share purchase plan.įurther to this, Zip said it had $401.9 million in undrawn and available-to-fund receivables at the end of the March quarter.Īs for the company’s credit performance, Zip’s arrears grew to 2.29 per cent of its total transaction volume at the end of March compared to 1.64 per cent in December, with bad debts reaching 3.4 per cent compared to December’s 2.83 per cent. “Our merchant pipeline is exceptionally healthy and we look forward to welcoming game-changing merchants to the platform in Q4.” “The Sezzle acquisition remains on track and will deliver significant scale and synergies, directly supporting our objective of accelerating and winning in our core US market, and building a profitable business at scale,” Mr Diamond said. “The quarter saw us continue to deliver top-line growth and strong revenue margins while beginning to implement this refreshed strategy,” Mr Diamond said.Īs part of this strategy to improve its merchant base and move to profitability over the next few years, Zip confirmed in February plans to merge with buy now, pay later rival Sezzle (SZL) in a $491 million deal. The company facilitated 18.3 million transactions over the quarter - down 16 per cent on the previous quarter but up 48 per cent year-on-year.Ĭo-Founder and CEO Larry Diamond said in its last half-yearly report, Zip acknowledged a change in “external factors” and adjusted its business strategy accordingly. Zip’s transaction volumes fell by 21 per cent quarter-on-quarter to just over $2 billion. This is a 38 per cent year-on-year increase. Zip’s quarterly revenue dropped by 4 per cent compared to the December quarter to $155 million for the March quarter.
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The company, trading under new ticker code ZIP, said the March quarter was typically a “weaker seasonal quarter” for the business and, while financial metrics are lower than the December quarter, they remain higher than the March quarter last year.
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