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Ann: October YTD trading update, page-54

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investor1000

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23/11/20

11:19

Post #: 49064510
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Originally posted by StefanF: ↑

For anyone wondering how these results aren't generating +20% SP jumps here is my take:

Lack of margin certainty

BNPL is a margin business, first and foremost. Whatever margins BNPL make, whether that's Afterpay, ZipPay or Klarna has to cover operating expenses, funding costs, bad debt and provisioning. Since these companies make slim margins but on HUGE volumes, it means that a slight change in margins has a massive impact on revenue, good or bad.

So while volume is looking very good (large increases in merchants, customers etc) there is still uncertainty on how margins will be impacted by products that aren't very profitable, most notably the pay-anywhere and now also the Chrome extension. As was already discussed in previous threads there is risk of cannibalizations the existing 4% fees for 0.7% transaction fees. And even if we're not talking about cannibalization, we don't know what % of these new customers is resulting in 4% margins and which are resulting in 0.7% margins, the latter of which may be good for relationship building and data but it would barely cover the expenses listed in bold earlier.

As a comparison, Afterpay doesn't have this uncertainty as they only have 1 product and any customer that comes onboard will effectively add between 4-6% fees per transaction.

In my opinion, we will see a significant increase in the share price only when we get more certainty that these new products aren't putting pressures on Z1P's margins.

Margins is everything in this industry so this point should not be understated.

AIMO of course and keep in mind this is me trying to make sense of the SP reaction and while I could be wrong it's at least more informative than the usual "Great announcement so of course SP drops" or "Z1P getting played by the shorters".

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quite agree mate I also think it has a lot to do with the framing of the reports. I notice everytime APT simply shows YoY comparison super high level but zip will go into the granular which for the average investor might be seen as poor performance. just my thoughts DYOR GLTAH
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(20min delay)
Last $1.89		Change -0.125(6.22%)		Mkt cap ! $2.385B

Open	High	Low	Value	Volume
$1.95	$1.98	$1.85	$54.15M	28.60M

Buyers (Bids)

No.	Vol.	Price($)
7	639873	$1.88

Sellers (Offers)

Price($)	Vol.	No.
$1.89	149904	4

View Market Depth

No.	Vol.	Price($)
1	1588	1.880
2	21000	1.870
2	7414	1.865
4	13550	1.860
4	25255	1.855

Price($)	Vol.	No.
1.890	15000	1
1.895	171	1
1.900	56588	4
1.905	110000	2
1.910	64314	4

Last trade - 16.10pm 02/08/2024 (20 minute delay)

ZIP (ASX) Chart

Ann: October YTD trading update, page-54

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Is oil undervalued?

Venture to sniff out high-grade REE targets at Jupiter project, WA

GreenX picks up prospective copper project in Germany

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Westgold sets its sights on top five producer status through merger with Karora

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

Ann: October YTD trading update, page-54

Top Stories

Vmoto sales plummet -50% YoY as weak demand in Europe & China stifles EV scooter sales growth

Is oil undervalued?

Venture to sniff out high-grade REE targets at Jupiter project, WA

GreenX picks up prospective copper project in Germany

Cost blow-out for Rook I uranium project sees share plummet for NexGen

Uranium prices on the NYMEX are stable, but ASX uranium stocks are sinking on Friday. The answer lies in Kazakhstan

Collaboration in a green (steel) future the focus for Magnum and Saudi partners

Commodity house Trafigura funds Develop Global's copper-zinc Woodlawn play with offtake deal in place

Week 31 Wrap: JORC rules to get tougher; RBA rate hike chance 50/50; US Fed Sept cut still the quo

Westgold sets its sights on top five producer status through merger with Karora

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News