Zip (ZIP) Q4 2024 TU earnings summary

Executive summary

• Achieved fourth consecutive quarter of positive Cash EBTDA, with FY24 underlying Cash EBTDA expected at $77m–$80m, a turnaround from a $48m loss in FY23.

• Strong growth in the Americas drove overall performance, with significant improvements in revenue and transaction volumes.

Financial highlights

• 4Q24 transaction volume (TTV) reached $2.6b, up 19% year-over-year; revenue was $223.6m, up 22.1%.

• Revenue margin improved to 8.6% from 8.5% in 4Q23; cash transaction margin rose to 3.9% from 3.1%.

• Net bad debts reduced to 1.4% of TTV from 1.9% in 4Q23.

• Active customers at quarter end totaled 6.0m; monthly transacting users reached 2.1m, up 6.1%.

• All Senior Convertible Notes converted, simplifying capital structure.

Outlook and guidance

• FY24 Cash EBTDA expected in the range of $67m–$70m; underlying Cash EBTDA (excluding staff incentives) expected at $77m–$80m.

• Focus remains on profitable growth, operational excellence, and providing value to customers and merchants.