- Fintech Zip posts record quarterly revenue of $13.2 million, up 18% on Q3 and 136% on last year.
- The company also hit its guidance of cash flow break-even.
- Super Retail Group and Wesfarmers’ Officeworks are joining Tigerair as customers.
Australian fintech Zip — the owner of the zipPay, zipMoney and Pocketbook brands — has hit cash flow break even right on target.
In a business update, digital retail finance and payments player says revenue for the fourth quarter was $13.2 million, up 136% on the same three months last year.
And Zip hit positive underlying cash from operating activities, after bad debt write-offs, of $700,000.
However, Zip’s share price fell up to 3% in early trade. At the close, the shares were down 1% to $1.00.
ZipMoney operates a “buy now, pay later, no interest” service and uses artificial intelligence and big data technologies to drive a credit and fraud decision engine.
Managing Director and CEO Larry Diamond says the company now has more than 1.2 million consumers and has processed more than $850 million in transactions on the Zip payments platform.
“Through Zip and Pocketbook, the company has created financial products that are resonating with Australian consumers,” he says.
“It is also pleasing to report that the Company achieved its goal of cash flow break-even on a monthly basis during the quarter – a huge milestone for management and investors.”
Zip also announced that Super Retail Group and Wesfarmers’ Officeworks were both rolling-out Zip’s omnichannel capability.
“The pipeline continues to grow with many large enterprise opportunities in negotiation,” says Diamond.
Last year the Sydney fintech landed a $40 million investment from Westpac.
In 2016, it paid $7.5 million for personal finance management app Pocketbook.
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