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Zip Co's (ASX: Z1P) expansion in the US has stoked a fire under the company's shares after the buy-now-pay-later (BNPL) group reported a near doubling of revenue in the December quarter and the addition of almost a million new customers to its platform.
Zip Co has revealed record revenue of $102 million for the quarter, up 88 per cent from a year ago.
As a result, the company lifted its annualised revenue forecast to $480 million, up from just $280 million reported just three months ago.
The figures have been buoyed by Zip Co's acquisition of US-based QuadPay, in a deal that settled in September.
The market reacted strongly to the news this morning, pushing Zip Co shares more than 11.5 per cent higher in early trading.
Zip Co CEO Larry Diamond (pictured) has described the results as a "step change" for the company, confirming its position as "one of the fastest growing players in the sector".
"A number of strategic initiatives were delivered during the quarter, in line with our mission to become the first payment choice everywhere, every day, and we are extremely well placed to continue this momentum into 2021 as the global shift away from the broken credit card model continues," says Diamond, one of Australia's Top 100 Young Entrepreneurs.
Zip Co had 5.7 million customers at the end of December, double that of a year earlier, with the group adding 915,000 customers during the second quarter.
It also added 38,500 new merchants to its platform, up 149 per cent from a year earlier.
The company's push into the US was bolstered by $176.7 million raised through an institutional placement and a share purchase plan in December.
Shareholders who participated in the placement priced at $5.34 per share would today be sitting on a 25 per cent gain on their investment in the past month.
Like its larger rival Afterpay (ASX: APT), Zip Co has yet to turn a profit, after reporting a net loss of $19.9 million in FY20.
Afterpay, which also saw a 4 per cent bump in its share price this morning, narrowed its losses to $22.87 million.
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