Zip Co Ltd (ASX:ZIP)
A$ 3.14 +0.010 (+0.32%) Market Cap: 4.04 Bil Enterprise Value: 6.19 Bil PE Ratio: 0 PB Ratio: 5.78 GF Score: 56/100
Back to the Transcripts List

Half Year 2025 Zip Co Ltd Earnings Call Transcript

Feb 24, 2025 / 11:00 PM GMT
Release Date Price: A$2.38 (-2.06%)

Key Points

Positve
  • Zip Co Ltd (ZIZTF) reported a record financial performance for the first half of FY25, with transaction volumes reaching $6.2 billion, up 24% year-on-year.
  • The US business delivered excellent results, with an 80% growth in cash earnings and a 40.3% increase in transaction volume.
  • Total income increased by nearly 20% to $514 million, with a revenue margin of 8.2% remaining within the target range.
  • The company achieved a cash EBTDA of $67 million, up 117% compared to the prior period, demonstrating significant operating leverage.
  • Zip Co Ltd (ZIZTF) maintained strong credit performance, with credit losses improving by 22 basis points to 1.6% of TTV.
Negative
  • The statutory net profit after tax was $23 million, lower than the previous year due to one-off gains in the prior period.
  • Cash operating costs increased by 10.1% year-on-year, reflecting higher investments in growth initiatives.
  • The company faces a long sales lead time for enterprise merchants, which can delay the realization of new merchant partnerships.
  • There is a potential risk of increased bad debts as the company pursues growth in both regions, especially with new product launches.
  • The competitive landscape in the US remains challenging, with other players like Afterpay expanding their presence.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ZIP.AX - Zip Co Ltd
Half Year 2025 Zip Co Ltd Earnings Call
Feb 24, 2025 / 11:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Thanks operator, good morning and thank you for joining us for Zip's first half FY25 results. To open, I'd like to begin by acknowledging the traditional owners of the land on which we meet today, the Gadigal of the Eora nation and pay our respects to elders, past and present.

This conference call is also being webcast, and an archive will be available on this website.

I'm joined today by Zip's group CEO Cynthia Scott and Group CFO Gordon Bell, who will present today's results. We also have US CEO Joe Heck and ANZ CEO Peter Gray, who will join us for Q&A.

We will start this call with some prepared remarks and then open up to questions.

With that, I'll now hand over the call to our group CEO, Cynthia Scott.
Already have an account? Log in
Get the full story
Start 7-Day Free Trial
Access to All Earning Calls and Stock Analysis
30-Year Financial on one screen
All-in-one Stock Screener with unlimited filters
Customizable Stock Dashboard
Real Time Insider Trading Transactions
8,000+ Institutional investors’ 13F holdings
Powerful Excel Add-in and Google sheets Add-on
All data downloadable
Quick customer support
And much more...
30-Day 100% money back guarantee
You are not charged until the trial ends. Subscription fee may be tax deductible.
Excellent
4.6 out of 5 Trustpilot
Research Tools
All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board
Product
Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App 中文
Education
Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation
Company
About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program
Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey
Follow Us
download GuruFocus on Apple store download GuruFocus on Google Play
Disclaimers
GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.
© 2004-2025 GuruFocus.com, LLC. All Rights Reserved.