Zip (ASX:Z1P) share price climbs higher following AGM update

The Zip Co Ltd (ASX:Z1P) share price is on the move today after the release of its annual general meeting update…

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Zip Co share price

The Zip Co Ltd (ASX: Z1P) share price is on the move on Monday following the release of its annual general meeting presentation.

At the time of writing, the buy now pay later provider’s shares are up 2.5% to $6.22.

What happened at the annual general meeting?

As well as providing investors with a summary of its performance in FY 2020, Zip updated the market on current trading and its expansion progress.

In case you missed it, in FY 2020 Zip delivered a 145% increase in transaction value to $3.2 billion and a 175% jump in revenue to $253 million. This was underpinned by a 120% lift in customer numbers to 4 million and a 70% increase in retail partners to 29,000.

Zip’s Chairman, Philip Crutchfield, commented: “Financial Year 2020 was another watershed year for Zip as we made specific moves to deliver on our global ambitions, expanded our offerings to small businesses and executed our plan against a backdrop of significant uncertainty.”

Mr Crutchfield has been pleased with the company’s positive start to the new financial year and believes Zip is well positioned for growth.

“The first half of this year has continued this positive momentum and we are exceptionally well placed to accelerate growth and capitalise on the opportunity to be a BNPL world leader,” he added.

Financial year to date, transaction value is up to over $4 billion on an annualised basis, with customer numbers reaching 4.8 million at the end of October. Pleasingly, management notes that the November seasonal trading period is set to be another record for the company.

UK launch.

Management also spoke about its global expansion, which was disrupted by COVID-19, and led to the delay of its UK launch.

The good news is that this launch is now happening and Zip has signed up a number of key merchants in the $600 billion market. It also has a team of 25+ on the ground in the UK to grow its pipeline and support execution at scale.

Mr Crutchfield explained: “I can report today that Zip is officially launching in the UK. We are live with over 150 merchants and will be bringing on global fashion and apparel brands, JD Sports, Boohoo, Fanatics and Fashionova as we scale in the region. As one of only a few truly global BNPL players, Zip has a huge and unique opportunity in this region.”

The chairman also touched on the company’s expansion into the small business vertical. He appears confident in this opportunity following a successful trial period.

“Extending our BNPL offering to Small and Medium Sized Enterprises (SMEs) is a natural evolution for Zip. Small businesses have the same needs, specifically the ability to easily spread the costs of a purchase over time on fair and transparent terms. The pilot we recently completed validated the market opportunity and provided key learnings that flowed through to our product development,” the chairman added.

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