Afterpay Ltd (ASX: APT) isn't the only buy now pay later provider releasing its results today.
This morning the Zip Co Ltd (ASX: Z1P) share price is edging lower after it released its own half year results.
At the time of writing the Zip Co share price is down 1.5% to $3.24.
How did Zip Co perform in the first half?
During the six months ended December 31, Zip Co reported record half year transaction volume of $964.7 million and record revenue of $69.6 million. This was an increase of 95% and 103%, respectively, on the prior corresponding period.
A key driver of this growth was its growing active customers. There are now 1.8 million active customers in the ANZ market, up 80% from the end of December 2018. And thanks to deals with companies such as Amazon, Ola, Optus and Freedom, its merchant acceptance network expanded 66% to 21,000 merchants.
Despite a 122% increase in cash operating costs, the company still recorded positive cash EBTDA of $1.5 million for the half. Total EBTDA (which includes share-based payments, acquisition costs, etc) was a loss of $24 million, compared to an EBTDA loss of $4.6 million a year earlier.
This ultimately led to the company posting a half year loss before tax of $30.3 million, up from a loss of $6.8 million in the first half FY 2020.
Management commentary.
Zip Co's managing director and CEO, Larry Diamond, advised that the company achieved record results across all key metrics.
He said: "We saw record results across all key drivers: customer engagement, transactions, in-store volume and revenue. We are pleased to report that we are ahead of our expectations for FY20 and are seeing significant growth opportunities in the recently added NZ and UK markets."
Outlook.
Management revealed that Zip Co is tracking well against its FY 2020 financial targets.
It is now annualising at transaction volumes of $2.3 billion for the second quarter, against its end of financial year target of $2.2 billion.
And with 1.8 million customers with an active Zip account, the company is on target to hit its FY 2020 global target of 2.5 million.
