The Zip Co Ltd (ASX: Z1P) share price has continued its positive run on Thursday following the release of its full year results.
In afternoon trade the buy now pay later company's shares are up 3.5% to $3.48.
How did Zip Co perform in FY 2019?
This morning Zip Co reported a 138% increase in revenue to $84.2 million thanks to a 108% lift in transaction volume through its platform to $1,128.5 million.
This was driven by an 80% increase in customer numbers to 1.3 million, a 54% jump in partner numbers to 16,000, and a whopping 154% increase in transactions processed to 4.8 million.
Pleasingly, despite the huge growth in transactions, the company's net bad debt write-off was just 1.63%, which is well below industry standards. Management believes this is a testament to the substantial investment in its proprietary credit decisioning technology.
Zip Co's reported cash EBTDA came in at $9.2 million in FY 2019, compared to a loss of $8.8 million in FY 2018.
The company's managing director and CEO, Larry Diamond, commented: "2019 has been a huge year for Zip as we continued the rapid growth in customer accounts, transactions and revenue. We also were successful in signing many $1bn+ enterprise accounts to the platform, launching the Zip App and more recently announcing the expansion of Zip globally."
"We are proud of these results, but are only just beginning and are now well positioned to drive more customers, to transact at more places, more often. We have a number of strategies in place to execute, both locally and globally, and are genuinely excited by the opportunities that lie ahead," he added.
Outlook.
Zip Co aims to grow its customer base to 2.5 million active customers in FY 2020 and generate $2.2 billion in annualised transaction volume. This represents an increase of 92% and 95%, respectively, year on year.
During the year the company intends to integrate the PartPay business and grow its New Zealand market share and launch into the UK market where it will be taking on industry giant Afterpay Touch Group Ltd (ASX: APT).
