Zip Co's 2Q24 results and 1H24 interim update

Zip Co Limited (ASX: $ZIP) announced its second quarter results for the three-month period ending 31 December 2023, delivering positive cash EBTDA as a Group for 2Q24. The Group cash EBTDA for 1H24 is expected to be between $29.0m and $33.0m, compared to ($33.2m) in 1H23. The company also provided an interim update on its 1H24 result in relation to Group cash EBTDA.

Executive Commentary on 2Q24 Results

Zip Group CEO and Managing Director, Cynthia Scott, stated, 'Zip delivered an outstanding Group cash EBTDA result for the second quarter, underpinned by a particularly strong seasonal performance in US TTV, the resilience of the ANZ business, improved margins and continued cost discipline. Group revenue grew by 26.1% and revenue margins were 8.2%, up 110bps versus 2Q23. Cash transaction margin improved 70bps versus 2Q23 to 3.5%, demonstrating the strength of the business model in a challenging external environment.'

Summary of 2Q24 Results and Outlook

Zip Co (ASX: $ZIP) reported a very strong quarter with positive cash EBTDA performance and margin expansion. The Group cash EBTDA for 1H24 is expected to be between $29.0m and $33.0m, compared to ($33.2m) in 1H23. The company's focus on disciplined strategy execution and relentless customer and merchant focus has resulted in record TTV in the Americas, successful product launches, and partnerships. With a strengthened balance sheet and improved liquidity, Zip remains committed to driving sustainable growth, product innovation, and operational excellence in its core markets. The company looks forward to providing a further update at its 1H24 results on 27 February, emphasizing its mission to be the first payment choice, everywhere and every day.