Buy-now-pay-later star, Zip Co (ASX:Z1P)
released its forth quarter trading update posting record figures mainly across the board. Despite a 13 per cent jump in revenue from the March quarter, other metrics are letting this fintech company down.
Net bad debts rose at 1.82 per cent from 1.78 per cent in the March quarter while their arrears rate is up from 1.78 per cent from 1.20 per cent.
The company reports a 10 per cent rise in total transaction volume for the quarter and 116 per cent year-on-year, though when you run the numbers on the transaction value to the number of transactions over the previous financial years, the figures could be seen as a decline in growth.
In financial year 2020, the company's revenue to total transaction value grew from 7.5 per cent to 7.7 per cent indicating expansion.
When you compare 7.7 per cent annual growth to the quarterly numbers, the June quarter rose to 7.4 per cent from 7.2 per cent in March.
Looking ahead the company is looking to rebrand its U.S brand Quadpay to Zip by mid-August so its offerings are under the same name.
Shares in Zip Co (ASX:Z1P)
are trading 7.2 per cent lower at $7.03.