Zip Co's FY24 financial results overview

Zip Co Limited (ASX: $ZIP) has announced its full-year results for the period ending 30 June 2024. The company reported a significant increase in Group cash EBTDA to $69.0m, marking a 243.2% rise compared to FY23. Additionally, Zip achieved a revenue of $868.0m, reflecting a 28.2% increase from the previous year. The total transaction volume (TTV) reached $10.1b, up by 14.0% from FY23. The company also noted a revenue margin of 8.7%, an improvement of 96bps versus FY23, and a decrease in net bad debts to 1.7% of TTV, down by 18bps compared to FY23. Furthermore, Zip Co experienced a surge in cash gross profit to $372.9m, marking a 52.8% increase from FY23. The company's active customer numbers stood at 6.0m, reflecting a 2.9% decrease from FY23.

Executive commentary on FY24 results and strategic priorities

Zip Group CEO and Managing Director, Cynthia Scott, expressed her satisfaction with the company's performance, highlighting the achievement of four quarters of profitability and the substantial improvement in Cash EBTDA to $69.0 million, representing a $117.0 million increase from FY23. Scott emphasized the outstanding performance in the US market, with record cash EBTDA, TTV, and revenue, as well as the ANZ business delivering a record cash EBTDA result of $33.0 million. She also underscored the company's commitment to innovation, exemplified by the launch of new products such as Zip Plus in Australia and the 'Pay-in-8' product in the US. Looking ahead, Scott reiterated the company's clear strategy and identified growth opportunities in both markets to drive continued profitable growth in FY25 and beyond.

Summary of FY24 results and outlook

Zip Co's FY24 results reflect a remarkable performance, characterized by substantial growth in cash EBTDA, revenue, and total transaction volume. The company's strategic priorities, including growth and profitability, product innovation, and operational excellence, have been instrumental in driving its success. The strong financial position, with a simplified and strengthened balance sheet, provides a solid foundation for future growth. Zip Co's focus on sustainability and commitment to delivering long-term value to its stakeholders further underlines its responsible business approach. With identified growth opportunities in both the Americas and ANZ markets, Zip Co is well-positioned to pursue continued profitable growth in FY25 and beyond, in line with its strategic objectives and commitment to innovation.