Zip Co Ltd (OTCPK:ZIZTF)

$ 1.76 0.01 (0.57%) Market Cap: 2.37 Bil Enterprise Value: 3.78 Bil PE Ratio: 0 PB Ratio: 7.54 GF Score: 60/100

Full Year 2024 Zip Co Ltd Earnings Call Transcript

Aug 27, 2024 / 12:00AM GMT

Release Date Price: $1.41 (-5.83%)

Transcript

Key Points

Positve

Revenue rose 28.2% to $868 million, with revenue margins expanding by 96 basis points to 8.7% of TTV.
Cash net transaction margin expanded by 96 basis points to 3.8%, and net bad debt fell to 1.7% of TTV.
The Americas business delivered a record cash EBTDA of $77.2 million, up 420% from a loss in FY23.
Zip achieved normalized group cash EBTDA of $69 million, a $117 million turnaround from FY23.
The company has no corporate debt and sufficient equity and free cash flow generation to support growth opportunities.

Negative

Active customer numbers in the US were slightly subdued during the year.
The ANZ business faced a more challenging operating environment despite improvements.
There are specific licensing requirements in some US states, causing temporary service disruptions.
The company expects to incur additional costs for growth initiatives, potentially impacting short-term profitability.
The revenue margin is expected to be diluted due to the significant growth in the US market, which has a lower margin.

Rachel Cooper

Zip Co Ltd - Director, Investor Relations & Sustainability

Good morning. And thank you for joining Zip's FY24 earnings call. To open, I'd like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal of the Eora Nation, and pay my respects to elders, past and present.

This conference call is also being webcast, and an archive will be available on the Zip's website.

I'm joined today by Zip's Managing Director and Group CEO, Cynthia Scott, and Group CFO, Gordon Bell. We will start this call with some prepared remarks and then open up to questions.

With that, I'll now hand over to our Group CEO, Cynthia Scott.

Cynthia Scott

Zip Co Ltd - Chief Executive Officer, Managing Director, Executive Director

Thanks, Rachel. Good morning. And welcome to Zip's FY24 results presentation. This morning, I'll cover the FY24 highlights and regional business performance. Then, Gordon will take us through the financial performance. And I'll conclude with remarks regarding our FY25 strategy and

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