ASX 200 rises 0.8%

The S&P/ASX 200 Index (ASX:XJO) went up by 0.8% today. The Zip Co Ltd (ASX:Z1P) share price jumped 23% after its quarterly update.

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The S&P/ASX 200 Index (ASX: XJO) went up by 0.8% today to 6,824 points.

Here are some of the highlights from the ASX:

Zip Co Ltd (ASX: Z1P)

The Zip share price went up by 23% after releasing its quarterly update to 31 December 2020.

Zip said that its quarterly revenue went up 88% to $102 million, with December revenue rising 94% to $40.2 million.

The buy now, pay later business achieved record quarterly transaction volume of $1.6 billion, which was up 103% year on year. The December transaction volume rose by 104% to $628.4 million.

Transaction numbers for the quarter went up by 149% to 10.7 million.

Customer numbers increased by 97% to 5.7 million whilst merchant numbers grew by 73% to 38,500.

Zip said that its US business, QuadPay, delivered record results in the second quarter across all the core metrics with $673.1 million of transaction volume, $47.6 million of revenue and 915,000 new customers.

The company also raised $176.7 million in equity, with the majority of funds allocated to fuel US growth.

Zip's managing director and CEO Larry Diamond said: "We are extremely pleased to deliver another exceptional set of numbers with the quarter really delivering a significant step change for the company, confirming our position as one of the fastest growing players in the sector. A number of strategic initiatives were delivered during the quarter, in line with our mission to become the first payment choice everywhere, every day, and we are extremely well placed to continue this momentum into 2021 as the global shift away from the broken credit card model continues. Particularly exciting were the results achieved in the US with Quadpay rapidly accelerating in the largest addressable market for BNPL."

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price was the worst performer in the ASX 200. It dropped 8.5% after it was announced that the CEO would be leaving.

The leadership transition will commence in the first of 2021 after the board and CEO Vik Bansal mutually agreed that it is the right time for Cleanaway to move forward under new leadership.

Cleanaway Chair Mark Chellew said: "We thank Vik for his contribution in achieving a significant turnaround of Cleanaway over his period as CEO. Vik has led Cleanaway's transformation and growth with enormous dedication, and it shows in the company's financial results. We thank him for his service and wish him all the very best for the future."

The waste management business pointed out that under Mr Bansal's leadership, the company made a total shareholder return of around 300%, compared to 58% for the ASX 200.

Mr Chellew will become the Executive Chair whilst the company looks for a replacement CEO. He has experience leading a business after leading Adbri Ltd (ASX: ABC) for over 12 years.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price went up 11.7% today after giving its quarterly update to 31 December 2020.

The ASX 200 share said that funds under administration (FUA) went up by 14% to $38.8 billion. Compared to the prior corresponding period, it was an increase of 36.1%.

FUA net inflows was $2.6 billion for the quarter, an increase of $0.6 billion (33.7%) over the first quarter. FUA net inflows for the 2020 calendar year was $9.2 billion, an increase of 36.1% compared to 2019.

Funds under management (FUM) went up by 15.5% to $9.3 billion at December 2020. FUM net inflows for the quarter were $0.7 billion.

The managed account balance at 31 December 2020 was $7.6 billion, an increase of 74.1% compared to the prior corresponding period. Managed account net flows for the 2020 calendar year were $3.2 billion, an increase of 63.9%.

The FY21 FUA net inflows are expected to be in the range of $8.5 billion to $9 billion, an increase on the previously advised expected annual net inflows of $8 billion.

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Netwealth and ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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