Page 1

For personal use only 13 April 2021 Q3 FY21 TRADING UPDATE ZIP CONTINUES TO ACCELERATE zip Zip Co Limited ( ASX : Z1P ) ( " Zip " , or the " Company " ) is pleased to announce today its Q3 results for the period ending 31 March 2021 . KEY HIGHLIGHTS ( Q3 FY21 ) * Note : all figures in AUD unless otherwise specified . • Record group quarterly revenue of $ 114.4m ( up 80 % YoY ) . • Quarterly transaction volume of $ 1.6b ( up 114 % YoY ) . • Record transaction numbers for the quarter of 12.4m ( up 195 % YoY ) . • Customer numbers increased to 6.4m ( up 88 % YoY ) . • • • • Merchants on the platform increased to 45.3k ( up 81 % YoY ) . Zip US ( Quadpay ) was again a standout , delivering significant growth in what is typically a seasonally quieter trading period , achieving record results across all core metrics - $ 762.0m in transaction volume ( up 234 % YoY ) , $ 54.4m in revenue ( up 188 % YoY ) with 674k new customers joining the platform ( up 153 % YoY to 3.8m customers ) . Zip ANZ continued its strong momentum with transaction volume of $ 837.3m ( up 61 % YoY ) and customer numbers increasing to 2.6m ( up 37 % YoY ) . Zip ANZ quarterly revenue of $ 57.9m was up 10 % QoQ ( up 37 % YoY ) despite seasonal trends , demonstrating Zip's robust and differentiated revenue model . Marquee merchants to join the platform included Microsoft , Boohoo , JD Sports , JB HiFi , The Good Guys , L'Occitane , Boardriders and Adore Beauty . • Net bad debts reduced to 1.78 % ( from 1.93 % ) for AU receivables , a very strong result further validating the strength of Zip's proprietary credit decision technology and ability to manage risk . • • • Completed an oversubscribed and upsized $ 500m issuance from the Zip Master Trust to fund AU receivables , with a material reduction in the weighted average cost of capital ( over 1 % ) . App downloads remain very strong with 1.6m new downloads globally for a total of 7.6m downloads . The group's capital efficiency remains very healthy with the book recycling every 3 months on a blended basis .