Ann: Zip US Leadership Update, page-155

We can use ChatGPT to outgenerate their nonsense, otherwise it really is nearly impossible to compete with the bear white noise.

Here are ten reasons why HotCopper poster "@bedger" was on the money and "@Tekvest" was wrong

1. Positive Cash EBTDA:

   • Bedger accurately predicted ZIP’s positive cash EBTDA for 1Q24, reflecting strong financial health. ZIP achieved a Group cash EBTDA of $20.1 million for 3Q24, driven by strong performance in the US and margin expansion in Australia .

2. Revenue Growth:

   • Bedger foresaw ZIP’s impressive revenue growth, which increased by 31.9% year-over-year in 1Q24 and 26.1% in 2Q24. This robust revenue performance contradicted Tekvest’s pessimistic outlook .

3. Improved Bad Debts Management:

   • Bedger highlighted ZIP’s ability to manage bad debts effectively. ZIP’s US bad debts continued to perform well with monthly cohort loss rates approximately 1.3% of TTV, well within the target range .

4. Strong Liquidity Position:

   • Bedger correctly emphasized ZIP’s strengthened liquidity, which increased to $81.3 million as of 31 December 2023. This strong liquidity position enhances ZIP’s financial flexibility .

5. Strategic Partnerships:

   • Bedger pointed out the significance of ZIP’s strategic partnerships with major enterprises such as Google Pay, which expanded its market reach and customer base. Tekvest underestimated the impact of these partnerships on ZIP’s growth .

6. Leadership Changes:

   • Bedger recognized the positive impact of bringing in experienced leaders like Joe Heck and Kevin Moss. These leadership changes were strategic moves to enhance governance and operational efficiency, something Tekvest failed to appreciate .

7. Cost Management:

   • Bedger noted ZIP’s successful cost management and operational efficiency improvements, which helped achieve positive cash EBTDA. This strategic focus on reducing costs was crucial for financial stability .

8. Market Position and Brand Strength:

   • Bedger saw ZIP’s strong market position and brand recognition as key growth drivers. ZIP’s ability to attract and retain customers in a competitive market proved Bedger’s analysis right .

9. Innovative Product Offerings:

   • Bedger was optimistic about ZIP’s innovative products like ZIP Plus, which cater to current consumer needs and enhance revenue margins. Tekvest overlooked the potential of these new product launches .

10. Positive Market Sentiment:

    • Bedger predicted the positive market sentiment towards ZIP, which was reflected in the share price rising from 25.5 cents to $1.28. This increase in investor confidence validated Bedger’s optimistic stance while proving Tekvest’s bearish outlook wrong .

These reasons demonstrate Bedger’s accurate and insightful analysis of ZIP’s performance and strategic direction, contrasting sharply with Tekvest’s incorrect predictions.