The buy now, pay later business announced on Wednesday it had posted a gross profit of $250.6 million for the 12 months to June 30, up 20.4 per cent year-on-year.
Its core cash loss of $48.2 million was an improvement on the $151.4 million loss incurred a year ago.
Revenue climbed 16.1 per cent to $693.2 million, with transaction volume climbing 7.0 per cent to $8.9 billion.
Active customers fell 3.5 per cent to 6.2 million, which Zip said reflected a focus on managing its risk settings and reducing bad debts, which declined to two per cent of total transaction volume, from 2.7 per cent from a year ago.
The company had $152 million in cash and cash equivalents as of June 30, down from $241.3 million a year ago.
The group expects to be cash profitable during the first half of 2023/24 and for the second half, which suggested to RBC Capital Markets analyst Wei-Weng Chen the company might not be profitable for the full financial year, which would disappoint the market.
Zip Group CEO Cynthia Scott said the company had a big opportunity in the United States, where buy now, pay later payments still compromised less than two per cent of total payments.
"We are focused on maintaining the momentum, driving sustainable growth and product innovation in our core markets of ANZ and the US as we deliver on our mission to be the first payment choice, everywhere and every day," she said.
Late Wednesday afternoon, Zip shares were changing hands for 34c, up 4.6 per cent on the day but down 38.4 per cent year-to-date and well under a high of more than $12 in February 2021.
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