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clock Created with Sketch. 27/03/24
12:26
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Originally posted by nakervirus:
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I honestly don't understand all the negativity here - unless its just people trolling or with their own agenda.have a look at the trajectory: See comparison below for 1H23 v 1H24: Revenue increased from $333.5 million to $430 million ($96.5 million increase) Interest expenses increased from $65.4 million to $98.3 million ($32.9 million increase) Bad debts increased from $86.1 million to $93.5 million ($7.4 million increase) Bank fees increased from $61.3 million to $62 million ($0.7 million increase) So effectively, with a $96.5 million increase in revenue, there was an increase of $41 million in associated costs. This is also in a period of high interest and high inflation. I firmly believe that they have shown they can keep bad debts under control, and that as interest rates drop and inflation settles the bad debts will also drop further as consumers will have more relief from their home loans etc. In addition, over the next couple years as interest rates are dropped back down, I have no doubt Zip will refinance their loans at lower interest rates which will decrease their interest expenses. BNPL is still also only a very small portion of the whole market, and independent studies have shown they expect this sector to grow signficantly over the next 5 years. So over the next 5 years, revenue will increase as indicated by the studies, and interest expenses and bad debts will reduce. So we also need to look at operating costs: Salary expenses decreased from $83.2 million to $72.5 million ($10.7 million decrease) Marketing expenses decreased from $25.7 million to $21.2 million ($4.5 million decrease) IT expenses decreased from $23.5 million to $20.8 million ($2.7 million decrease). Other expenses increase from $23.7 million to $34.9 million ($11.2 million increase). So effectively, with a 96.5 million increase in revenue, there was a decrease of $6.7 million in operating costs. Which means they can continue to grow without increasing operating costs significantly (and in fact they probably could reduce operating costs further if they felt it was needed). As far as I'm concerned, there is virtually no doubt that they will be profitable next year.
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What are the Q3 2023 numbers?
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