Ann: Annual Report to Shareholders, page-2

Morning All,

Huge increase in revenue; up 431% to $17m.

Still running at a loss (-$20.2m NPAT). Now employs 102 people (up from 35 in 2016). Guidance indicates progressive break-even on a monthly basis in Y18 (no specifics though). Funding cost reduced from 10-12% to around 5% (mainly due to NAB facility).

Strong focus on data science (especially machine learning and AI) to drive more intelligent algorithms to expedite credit applications and minimize bad debts. Process now fully automated (no human involvement).

For me, still need to understand source of revenue and its sustainability with regard to operational costs and cost of funds. If Zip offers interest fee money but pays interest on use of funds, then merchant and customer fees appear to be the prime source of revenue.