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0.66%

75.5¢ zip co limited

Too many staff for that revenue Loss too high Funding cost down...

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AllFuelledUp

4,783 Posts.

149

24/08/17

14:36

Post #: 26730162
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Originally posted by cheplan ↑

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.

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Too many staff for that revenue
Loss too high
Funding cost down to 5%? I'd like to see that
AI = gimmick
Still testing = how do these things list

I don't like this or Afterpay. Its the pay day loan economy

ZML Price at posting: 76.5¢ Sentiment: None Disclosure: Not Held
2 Upvote

0 Great analysis

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