The Zip Co Ltd (ASX: Z1P) share price is edging higher this morning following the release of an update on its performance in November.
At the time of writing, the buy now pay later provider’s shares are up 0.5% to $6.06.
How did Zip perform in November?
Zip’s update reveals that it continues to deliver record results across all regions.
This led to the company recording record transaction value of $577.1 million in November, up 44% on October and more than 100% year on year. Based on this, Zip’s transaction value is now annualising at almost $7 billion.
This strong growth was driven by a 157% increase in monthly transaction numbers and a 104% year on year increase in customer numbers to 5.3 million. A total of 464,000 customers were added during November.
No details were provided in respect to Zip’s bad debts or arrears.
How is it performing in different regions?
The company’s US business was arguably the star of the show in November.
It reported a 12% month on month increase in customer numbers to 2.8 million and a 65% month on month lift in transaction volume to $264.2 million.
In the ANZ region, Zip reported a 9% month on month lift in customer numbers to 2.5 million and a 30% month on month increase in transaction volume to $312.9 million.
Both regions delivered 50% increases in transactions during November in comparison to October.
Managing Director and CEO, Larry Diamond, said: “We are extremely pleased with the BFCM [Black Friday – Cyber Monday] results and more broadly the entire month of November. Through our deep merchant relationships, we were able to secure a number of unique deals & offers which were delivered to our highly engaged customer base.”
“We saw a continued shift to online with strong buying in consumer electronics, appliances, gaming, gifts and apparel categories. Zip finished FY20 on $3.2bn in transaction volume (on a pro forma basis) and already by November, we are run-rating at approximately $7bn.”
“November was clearly a stand-out month for the Company processing over $570m, and are seeing continued momentum as we close out the calendar year. Zip is well on its way to becoming the first payment choice everywhere and every day,” he concluded.