The Zip Co Ltd (ASX: Z1P) share price rose by over 3% today after the buy now, pay later business announced its December 2019 quarter update to investors.
Compared to the first quarter of FY20, it achieved quarterly revenue growth of 24% to $38.5 million. Receivables rose by 33% to $1.04 billion over the three months.
Zip said that it achieved record quarterly transaction volume of $562.6 million, which was up 40% on the first quarter and it's up 85% year on year. Zip now has annualised transaction sales of $2.3 billion. Zip announced that from Black Friday to Cyber Monday it achieved transaction volume of $44 million.
Another pleasing stat was that customer numbers increased by 24% to 1.8 million over the quarter. Merchant numbers grew by 17% to 20,875 over the quarter.
Some of the most recent brands to join the Zip platform or go live include Ola, Optus, Seafolly, Jax Tyres and Sigma.
Another of the main highlights from the quarter include Zip signing an agreement with Amazon Australian which launched in November 2019. Zip is Amazon's first instalment payment option.
Zip also completed its acquisition of PartPay, which will give it exposure to New Zealand, the UK, US and South Africa. It also acquired SME lending provider Spotcap ANZ, which Zip said is performing well.
Its leadership team continues to strength with the recent signing of ex-Visa employee Hamish Moline as Chief Commercial Officer.
Foolish takeaway
Clearly Zip had another great quarter and the market was pleased by the numbers reported. It will be interesting to see if Zip is able to grow strongly alongside its competitors or whether there will be a clear leader (or two) in the coming years.
