Couple really key points that stood out to me: 1. After the last quarterly the share price dropped because EBTDA was only $35 million approx compared to analysts expecting $40 million approx. However, Zip has just provided guidance of at least $147 million EBTDA for the year, which means that in 2H25 they will have an EBTDA of approx $40 million each quarter - and this is without the seasonal boost.
2. Product Innovation - great to see them mention the new Zip Personal Loans product in Australia, and that they are releasing a new product in the US (Pay In Z) next financial year. And they are working on other products for next financial year as well. Also seems like they will be piloting some capital light propositions this financial year in Australia so looking forward to seeing that implemented.
3. Getting more from each customer - people have said previously that they thought Zip couldn't get any additional growth from their existing customers and would struggle to grow without new customers. But turns out that in the US "Customer engagement deepened further, with average spend and average transactions per customer increasing 33.1% and 29.8% respectively."
4. Funding costs - seem to have decreased from 8.42% in June 2024 to 7.9% in December 2024. Hopefully continue to see that decrease as interest rates are cut further over the next 12 months.
Anyway looks like another fantastic report and can't wait to see how the company grows over the next year!
ZIP Price at posting:
$2.67 Sentiment: Buy Disclosure: Held
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