The Zip Co Ltd (ASX: Z1P) share price has struggled to deliver meaningful shareholder returns in the last 12-months, with every major move up met with a mitigating selloff.
With highly anticipated full year FY21 results right around the corner, could investors learn anything from last year's results?
What happened last earnings season?
The buy now pay later (BNPL) sector was running hot right before earning season last year.
Between 1 and 26 August, the Zip share price managed to rally 62.5% from $5.94 to $9.65.
This move up was fueled by a QuadPay trading update on 24 August and an Ebay partnership announcement on 26 August.
It looked as though investors had been buying the rumour and selling the news, as the Zip share price would tumble following the release of its FY20 results on 27 August.
The FY20 results would highlight record figures across the board with revenue increasing 91% to $161 million, transaction volumes lifting 87% to $2.1 billion and a 62% increase in customers to 2.1 million.
On the day of its full year results, the Zip share price would rally 8.39% on open to $10.46, before selling pressure would drag the company's shares to a negative close of 4.66% to $9.20.
The Zip share price would continue to tumble in the following days, hitting a low of $5.83 by 14 September.
What should investors note about this earning season?
It looks like it has become increasingly difficult to 'wow' investors.
Take Zip's fourth quarter results for example.
The company delivered triple digit growth across most key operating metrics.
During the quarter, Zip's revenue increased 104% year-on-year to $129.9 million, transaction volumes jumped 116% to $1.8 billion and customers increased 87% to 7.3 million.
The update also delivered the company's first quarter of trading in the UK, with "strong growth in transaction volume and customer numbers".
In addition to organic launches in Canada and Mexico.
And noted that the Europe and Middle East acquisitions are expected to be finalised in Q1 FY22 and Q2 FY22 respectively.
Despite the good news, the Zip share price would open 2.90% higher to $7.80 before sliding 7.92% lower by market close to $6.98 on the day of the announcement.
Zip share price snapshot
The Zip share price is up 40.7% year-to-date with most of these gains taking place between January and February.
In terms of its FY21 performance, Zip shares have nudged 4% higher.
