Zip (ZIP) H2 2024 earnings summary

Executive summary

• Achieved record group profitability in FY24, driven by strong revenue growth, disciplined cost management, and significant operating leverage.

• Simplified balance sheet with all convertible notes extinguished and corporate debt eliminated as of July 2024.

• Standout performance in the US and continued profitability in ANZ, positioning for future growth.

Financial highlights

• Revenue increased 28.2% to AUD 868 million, with revenue margin up 96 bps to 8.7% of TTV.

• Group TTV reached AUD 10.1 billion, up 14% year-over-year; Americas TTV up 39.5% to $6.5b.

• Cash gross profit up 52.8% to AUD 372.9 million; cash net transaction margin rose 96 bps to 3.8%.

• Normalized group cash EBITDA was AUD 69 million, a AUD 117 million turnaround; underlying cash EBITDA was AUD 79 million.

• Statutory net profit before tax was AUD 25.1 million; net profit after tax was $5.7 million, a turnaround from a $329.9 million loss in FY23.

Outlook and guidance

• Targeting revenue margin of 8%-9% and cash NTM of 3.5%-4% over the next two years.

• Cash EBITDA targeted at more than 1% of TTV in FY25 and 1%-2% over two years.

• US TTV growth expected to exceed 30%-32% market rate in FY25.

• Focus on higher margin channels, scaling new products, and improving cost of sales through scale.