Zip falls despite strong quarterly earnings, looks to offer crypto trading
07:58, 22 July 2021
Australian payments provider Zip on Thursday reported revenue for June quarter more than double from a year ago with total customer numbers increasing by 87%.
Despite the strong performance, shares fell 7% to A$6.99 ($5.15). The Australian Financial Review reported that Zip missed US customer growth expectations.
The US was Zip’s biggest market according to its June quarter revenue, contributing over 50% of total revenue. Zip’s US revenue nearly quadrupled while its Australian figures up 39% over the same period.
High expectations on BNPL firms
The buy-now-pay-later (BNPL) firm, which operates in Australia, New Zealand, United States and United Kingdom, said quarterly transaction volume surged over 100% to A$1.8bn compared to a year ago.
BNPL firms in Australia including Zip, Afterpay and Sezzle have seen weakness in stock prices recently. Reports on Apple and Goldman Sachs collaborating to allow customers pay for Apple Pay purchases in instalments over time and news of PayPal Australia no late fees on its BNPL service has heated up the competition.
In the past one month, Zip and Afterpay lost 13.5% and 11.2%, respectively, as of Thursday’s close. Australian benchmark index S&P/ASX 200 has gained nearly 0.3% in the same period.
What is your sentiment on AU200?
Crypto ventures
Zip’s co-founder Peter Gray told Reuters that the company is looking to provide its users cryptocurrency trading services within the next 12 months in US and in Australia.
Gray added that crypto trading was one of the most requested product features for Zip’s digital wallets from users.
Trade Australia 200 - AU200 CFD
Read more : All rise in Asia-Pacific as South Korea markets snap losing streak
Related topics