Zip Co Ltd (ASX: ZIP) shares experienced a remarkable surge of 17.3% on Tuesday, reaching A$2.80, their highest price since January 30. This uptick followed the buy-now-pay-later (BNPL) company’s impressive half-year financial results, driven by strong growth in the U.S. and strategic cost management.

Key Financial Highlights

• Cash EBTDA: A$67.0 million (+117.1% YoY)
• Total Transaction Volume (TTV): A$6.2 billion (+23.9% YoY)
• Total Income: A$514 million (+19.8% YoY)
• U.S. TTV Growth: +40.3% YoY, making up 70% of total TTV

Growth Drivers

CEO Cynthia Scott credited the record results to robust U.S. consumer demand and disciplined execution. This is evidenced by a 64% increase in in-store transactions during the holiday season, indicating Zip’s increasing market influence.

The ANZ segment also showed recovery signs, with Australian TTV increasing by 10% in December.

Future Outlook

Zip has reaffirmed its FY25 guidance, projecting a cash EBTDA of at least A$147 million. The company currently lacks a dividend policy.

With strong momentum in the U.S. and execution of its strategy, Zip is positioned to remain a significant player in the BNPL industry as it heads into 2025.