Ann: Q1 FY23 Results Update - Zip Taking Control, page-76

First 76 Last

Share
Profile

Follow
Xagxau

829 Posts.

100

24/10/22

11:00

Post #: 64355260
Share

Originally posted by bedger: ↑

The usual passive aggressive Tekvest, earlier you baselessly claimed:

"It's a shame you can't or won't read financials, just regurgitate the stuff put out by the company and put a spin on it"

Now I am of course a 'day trader'.

I discussed the reported qtrly financial metrics of a company on an investor forum. Kind of what these forums are for....lets continue that.

At the end of the period ZIP had available cash and liquidity of $140.7 million. Total cash on the balance Sheet at 30 September 2022 was $319.1m. Sorry for "regurgitating", but like you admit yourself, I have no more up to date or insightful figures than that the company provides. So ZIP's cash burn is falling. We know the ANZ business has been cash flow positive for 4 years. Now the cash burning, but also rapidly expanding, US business is improving in at least the direction towards cash flow positive. Bad debts as a % of TTV coming down. Merchants (+70% YoY.....+70%!!!) and business transactions continue to rise (revenues +19% and transactions +33%, YoY). They are not aimlessly adding customers anymore, but adding customers with more refined credit analysis and still add +17% YoY! Revenue margin remained "healthy" at 7.4% and with group debt margins falling towards 2%. Its moving towards a profitable business model, unlike 2021/22 when business metrics were moving in the wrong directions.

I don't put "spin" on things. I don't need to. If you've studied the recent financials of ZIP (which you claimed I hadn't), the business metrics are irrefutably moving in the right direction, after a serious short period of doubt. Bad debts are falling as a percentage of transaction. Their cash transaction margins are steady. The only spin was the company's. I have said in my past posts I thought 2023 a little too optimistic for cash flow positive - I see they are now aiming for EBITDA profitability in 1H 2024. Unless this recent trends reverse again, or something significantly changes in the business, ZIP is moving towards its own 'spin' of EBITDA profitability in 2024. And given the size of its business already, let alone with continued growth, that makes a $500 million market cap' far to low on traditional valuation metrics.

Expand

Zip did first steps to turnaround (perhaps Larry listened to our voices?) and we saw the metrics improving. plus Larry moved to US (with his family) to grow Zip US business which a positive sign.

happy to see more growth unfold. The good buying marching back today perhaps after digested the report over the weekend

ZIP Price at posting: 65.5¢ Sentiment: Hold Disclosure: Held
9 Upvote

0 Great analysis

Reply

Top Stories

RMX

Red Mountain Mining: record gold prices, two projects, two greenstone belts

YAL

Yancoal makes it into the ASX200 in latest S&P rebalance

GDC

Global Data Centres not clear on future operations after AirTrunk sale payout

CBL

Control Bionics expands into UK and Irish markets with NeuroNode device

CNB

Carnaby Resources hits copper at Mohawk, QLD