The Zip share price is falling hard today despite the company delivering strong growth across most key financial metrics, demonstrating investors' high expectations for the high-flying stock.
Zip reported cash earnings before taxes, depreciation and amortisation (EBTDA) of $35.3 million. That's an increase of 50.2% from 2Q FY 2024, though it's lower than some analysts have been forecasting.
Total Transaction Volume (TTV) came in at a record $3.4 billion, up 24.8% year on year.
Revenue also grew strongly, up 20.5% to $269.4 million.
However, the Zip share price looks to be catching headwinds today, with revenue margin slipping to 7.9% from 8.2% reported in 2Q FY 2024. Cash transaction margins also dipped slightly to 3.6% from 3.5% in the prior corresponding period.
In a positive sign, bad debts were down year on year, with Zip reporting net bad debts represented approximately 1.5% of TTV. That's down from 1.7% of TTV in 2Q FY 2024.
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