Quadpay us 100 percent owned by zip.so include them then come...

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No1hasacluehere

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07/10/20

12:38

Post #: 47908840
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Originally posted by Andredamus1: ↑

Rather than making a comparison across different financial years and also using numbers for Zip which include Quadpay, while their audited accounts don't include Quadpay, it is more meaningful to focus on the FY20 results for both companies (excluding Quadpay for Zip).

Afterpay had TTV of $11.1b and revenue of $519m - representing a gross transaction margin of 4.7%.
Zip had TTV of $2.1b and revenue of $159m - GTM of 7.6%.
So you are correct that Zip has a significantly higher GTM than Afterpay.

It is however worthwhile looking at a few other metrics:
Credit costs - Afterpay $95m (18% of revenue): Zip $54m (34% of revenue)
Interest expense - Afterpay $23m (4% of revenue): Zip $39m (24% of revenue)
ANZ EBTDA - Afterpay $102m: Zip negative $15m
Net debt - Afterpay net cash $137m: Zip $1,049m

IMO just looking at GTM as a basis of comparing Afterpay and Zip is almost meaningless and distorts the fact that the 2 companies actually have quite different business models (as is borne out by the other metrics I have highlighted). Personally I am very confident that Afterpay's business model and scale will result in significant profitability as the business matures (which we can already see in ANZ) which is not something I am able to to say in relation to Zip.

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Quadpay us 100 percent owned by zip.so include them then come back to me

because if you're doing that we may as well remove several revenue streams afterpay acquired yeah.....
so do it again and compare company to company
afterpays results in 2019 included all subsidiaries
so compare that with zip and quadpay and what you get is;
zips 2020 annual revenue is 252 million off of 3.2 billion ttv
comparitively afterpays 2019 annual revenue was 251.6 million off 5.2 billion ttv

ive also seen affirm use a metric if revenue generated per employee, we should start using that too.
hands down zip is a more efficient revenue generating business.

APT Price at posting: $84.94 Sentiment: Sell Disclosure: Not Held
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0 Great analysis

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