The Zip Co Ltd (ASX: ZIP) share price is having quite a ride today
Shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) stock closed up 6.4% yesterday at $3.14. In morning trade on Thursday, shares were changing hands for $3.39 apiece, up 8.0%. But then things took a downward turn, with shares currently down 0.6% at $3.12 each.
For some context, the ASX 200 is now also down 0.5% at the time of writing, having given back all of its early morning post-US election gains and then some over the past hour.
As the chart above shows, despite today's dip the Zip share price, up 670% in a year.
Here's what ASX 200 investors are considering today.
What's moving the Zip share price?
Investors first bid up the Zip share price and then bid it back down on the day of the company's annual general meeting (AGM).
Zip chair Diane Smith-Gander opened the AGM this morning by reviewing what she called the company's "outstanding year"
Highlights she cited from FY 2024 included:
- Record total transaction volume of $10.1 billion
- "Robust" revenue growth to $868.0 million
- Record group cash earnings before taxes depreciation and amortisation (EBTDA) profitability of $69.0 million
"Our FY24 results reflect the team's focus on financial discipline and execution of a highly targeted growth strategy," Smith-Gander said, highlighting the "exceptional performance" of Zip's Americas business.
"In FY24, significant progress was made to strengthen and simplify the company's financial position," she said, noting that "risk management remains a key focus for the board".
A word from the CEO
The Zip share price also isn't getting a lift despite some encouraging words from CEO Cynthia Scott, who took to the podium following the chair's address.
In the first quarter (Q1 FY 2025), for example, Zip's cash earnings soared a remarkable 233.7%.
Scott noted:
Zip has continued to drive scale and operating leverage in this financial year, with the team delivering a group cash EBTDA result of $31.7 million, up 233.7% versus the first quarter of FY24.
Our US business continued to deliver outstanding growth, with TTV [total transaction value] up 42.8% and revenue up 43.9%, versus the first quarter of FY24, driven by ongoing engagement in higher-margin channels such as the App.
The performance of the company's Australia and New Zealand business has supported the Zip share price over the past months.
"In ANZ, the yield on receivables increased to 19.2% driven by strategic portfolio management actions, and excess spread expanded to 6.9%, a very strong result in the current high interest rate environment," Scott said.
