ZIP -7.93%: Hit today following their FY24 results, even though most of their financials had been pre-released, so focus was on FY25 trading & outlook.
- Revenue $868.0 million, +28% y/y, vs consensus of $866.8 million
- FY24 cash EBTDA of $69 million vs. guidance of $67-70m, though slightly below consensus of $71.2m
- Transaction volume A$10.05 billion, +14% y/y
- Active customers 6.0 million, -3.2% y/y
- Merchants 79,300, +9.7% y/y
- Very small net profit recorded, but that’s a big turnaround for ZIP after losing ~$380m last year.
In terms of guidance, ZIP now expects to earn 1% of Total Transaction Value (TTV), which is above most expectations we’ve seen, however, they didn’t provide a trading update on their US operations. They previously guided to 30%+ growth in the US in FY25, though there was no detail around bad debts and the like in today’s 1Q Trading update, other than to say, consumer credit growth remains strong and arrears are trending back to pre-pandemic levels
MM is long ZIP in the Emerging Companies Portfolio
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