News: ZIP Zip Posts FY Revenue From Ordinary Activities From Cont Ops A$693.2 Million, page-47

Careful Goodfella, you are almost showing your (at lest financially aligned with) short hand there:

"Might have escaped your attention but bankruptcy has a zero value....bit like your 60 cent calls."

Your response predictable in guise. I do a thorough text book analysis of all of ZIP's reported figures, to the benefit of Hot Copper readers, and you throw out hidden expenses in corporate costs, unsubstantiated allegations of auditor failings and accuse me of misleading investors, for posting a simple analysis that is pretty much what you'd read at any covering broker, would you pay for such a service - many Hot Copper investors don't, hence I post.

I did the same simple analysis when I was short ZIP a couple of years ago, that suggested ZIP was way over-valued, with the honest declaration of being short - I wasn't misleading back then, quite the contrary, it was sound analysis for those who heeded it. I do the same analysis now, showing how ZIP is under-valued, with the honest declaration of being long.

Your argument is also non-sensical. If indeed those naughty auditors are helping nefarious ZIP "hiding $127 million of expenses in corporate costs" as you say....well given Corporate Financing Costs (perhaps this is what you refer to) are reflected on the PNL statement as expenses, so those expenses are reflected. Are you suggesting ZIP and the auditors somehow hiding expenses/costs, with out any final effect to the balance sheet? Who knows with your ambiguous and unexplained comments?

Of course, the reality is you are just slinging mud and hoping some sticks. One moment its 'corporate costs', then 'corporate losses'. Who knows what you are actually talking about - but that of course the purpose. Perhaps you should lend us humble idiots your expertise and even put in thorough detail your actual analysis to ASIC and show them how ZIP and their auditors (and myself as you allege) are (criminally) misleading investors - a risky allegation in today's litigious society even on an anonymous investor forum.

Comical, but alas predictable. There are dozens of the usual one to two line suggestions above that, ZIP's comprehensive, audited accounting figures are all a load of hooey from the usual day in, day out negative rampers on Hot Copper. There is one simple but comprehensive textbook analysis of ZIP's reported figures above from a poster who rarely comes on ZIP threads. Lets revisit those figures without comment or opinion:

ZIP has reduced its open note convertible debt from $500 million to $138 million in a year.

ZIP raised revenues, +16% to $693 million this year) in the last year.

ZIP has raised revenue margins across the year +60bps to 7.8% (above its declared medium-term targets of 7.0-7.5%)

ZIP's cash transaction margins have risen to 3.1% for the last quarter and 2.8% for the year.

ZIP's net bad debts have fallen as % of TTV at group of 2% (versus its declared target of <2%) versus last year at 2.7%

ZIP's core cash EBTDA -$48.2m, -55% improvement in 2H vs. its declared -50% core cash EBTDA improvement target.

No ramping (no mud slinging like yourself). Just simple and irrefutably improving business metric figures across the time period reported.

ZIP was ridiculously priced in 2021. But the same old criticisms on here for the over a year now, since July 2022, when ZIP first reversed its very scary and worryingly falling crucial metrics as a financial business, are clearly no longer valid.

ZIP has reduced its open note convertible debt from $500 million to $138 million in a year! The balance will still need to be repaid or converted to shares, but its previously arguably far too high debt overhang has been vastly reduced. This a strongly argued reason for ZIP's demise on Hot Copper. Reined right in (at the expense of dilution - unlike my shorting friends, I am prepared to be objective)

ZIP has consistently raised revenues (+16% to $693 million this year) in the last year, whilst actually slightly reducing customers (more risky ones particularly) at times.

It has again raised revenue margins, +60bps to 7.8%, and is above medium-term targets of 7.0-7.5%. This is the bread and butter of the business and the main argument a year ago that ultimately ZIP and BNPL was not a sustainable business - clearly those calls were wrong and the present ones above even more so with ZIP going cash flow positive. Cash transaction margins now at 3.1% for the last quarter. 2.8% for the year. People were quite rightly saying if they went below 2% in June last year that the business would likely go bust. Its flown close to the sun, but ZIP has survived.

Its net bad debts as % of TTV at group of 2% (target of <2%), again they were close to 3% last year and that was absolutely unsustainable given the other margins ZIP was showing. That is incredible and way better than my expectations in the fastest rising interest rate environment of all time - they have drifted back up a little after being very slightly lower at times in the last year - oh dear, there is that objectivity again.

Literally ZIP US is exiting FY23 cash EBTDA positive, NZ reported a positive cash EBTDA result for FY23. ZIP AU has been positive for five years (something I commented on a year ago on these threads and was literally lied about by shorter paid liars on these threads and yes am still bitter about - I don't like dishonesty going unpunished/checked).

If you guys just look at the share price, you are missing the dilution effects of recent debt removal and raises. That said ZIP near all time lows in terms of mkt cap and that makes ZIP a buy to me. ZIP's worse risk environment was a year ago IMO. It has in that time reduced its debt significantly. It has raised its revenues and improved its debt and business metrics to suggest sustainable business practice. I don't like Larry that much for his stupid hubris and belligerence in the past, but have to hand it to him, the business turn around in such an oppressive business environment (Central Bank amplified debt cycle) has been remarkable. Perhaps that reflective of just how poorly the business was run in the past. That was then this is now.

ZIP will be profitable in 1HFY24 - with added guidance for 2HFY23 to be positive for the full half. I don't know who is selling down here, but its well after the horse has bolted and been well and truly corralled again. I like buying companies on the verge of going cash flow positive, before the markets really pick up on it. This one is staring the mkts in the face and I openly admit I have over-estimated their efficiency by buying in a little too early, but am buying more here.

(Well done to shorts btw [not their feeble narrators on here], I was one myself in 2021 - but its now a very risky proposition with ZIP's value this low)