Zip shares rocket 8% on surging FY 2023 revenue

Zip released its full 2023 financial year results this morning.

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Zip Co Ltd (ASX: ZIP) shares are charging higher on Tuesday.

Shares in the All Ordinaries Index (ASX: XAO) buy now, pay later (BNPL) stock closed yesterday trading for 33.0 cents. In earlier trade shares were changing hands for 36.5 cents, up 10%.

After some likely profit-taking, shares are trading for 35.5 cents apiece at the time of writing, up 7.6%.

For some context, the All Ords is up 0.4% at this same time.

This comes as investors pore over the BNPL company's FY 2023 results, released this morning.

Zip shares gain on revenue leap

Investors are bidding up Zip shares today after the company reported revenue of $693 million, up 16% from FY22. The boost in revenue came with a record transaction volume (TTV) for the 12 months of $8.9 billion. That's up 7% year on year.

Also fuelling investor enthusiasm today is the 20.4% increase in Zip's gross profit, which reached $251 million. And the ASX BNPL stock managed to cut expenses by 34% from the prior year to $619 million.

Still, despite these solid results and new records, the company reported a loss before tax of $372 million. That's an improvement of 53.9% from the FY22 net loss, but still a sizeable hole.

Commenting on the results, Zip CEO Cynthia Scott, said, "We achieved this against a backdrop of rising interest rates and inflationary conditions, demonstrating the resilience and increasing relevance of our product offering to our customers and merchants."

Despite today's welcome lift, Zip shares remain down 55% over the past 12 months.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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