Jump to content

Zip earnings preview: is the BNPL leader on track to profit?


MongiIG

Recommended Posts

As Zip prepares to announce its annual report, what should traders expect?

1661218830849.jpgSource: Bloomberg
 
Hebe Chen | Market Analyst, Melbourne | Publication date: Tuesday 23 August 2022 

Zip Co Limited (ASX: ZIP) release date:

Zip Company Limited will release its annual report on Thursday, 25 August 2022.

Zip Co Limited earnings expectation

Zip reported a 27% increase in quarterly revenue ending in June 2022, an increase of $160.1 million when compared to Q4 in 2021. For the full-year, Zip's revenue increased by a healthy 54% to $621.5 million and even then, the company fell short of expectation.

ZIP FY22 Earnings Key Watch

The robust results for the past financial year can be primarily attributed to its consumer sector including the United States, Australia, and New Zealand.

  • Customer Growth

Based on the past four quarterly reports, Zip’s underlying business remains strong with consistent customer and transaction growth across its core markets and a solid pipeline of enterprise merchants joining the platform. As shown in the below chart, the US market remains a core market for the group, representing a significant opportunity for expansion.

1661218924906.JPGSource: ZIP
  • Path to profitability

This year, Zip has announced a new commitment to focus on a new strategic plan and accelerate its path to profitability. Based on the revised plan, the global financial technology provider is taking steps to reshape its international presence by closing down its Singapore business.

Management recently revealed that the company will give up Zip Business and the Pocketbook app, as well as proposed crypto and investment products. As a result, Zip has reaffirmed its target to deliver group profitability during FY24.

  • Merger termination

In light of current macroeconomic and market conditions, Zip and Sezzle have mutually agreed to terminate their merger agreement and the proposed acquisition of Sezzle by Zip in July. As part of the termination, Zip needs to pay Sezzle $11 million to cover legal, accounting, and other costs associated with the transaction.

 

ZIP share price and technical analysis

After rising more than 286% in July, Zip's stock price has pulled back below $1 with support from the previous high at 0.981. The next key watch level will be the 100-day Simple Moving Average and 38.2% Fibonacci extension level if the price keeps sliding. On the other hand, in a scenario in which the coming report helps to recover the risk sentiment, the imminent price target is set to be around $1.052, where a critical 50% Fibonacci extension stands in place.

1661218956512.JPGSource: IG
Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,059
    • Total Posts
      95,467
    • Total Members
      43,679
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Alastair
    Joined 02/10/23 23:07
  • Posts

    • Commodities Market Trading Report - Technical Analysis is Elliott Wave and Trading Strategies Content: US Bond Yields, USD, DXY, US Gold XAU, GDX, Silver XAG, Gold Stocks, Iron Ore, Copper, Uranium, Crude Oil, Natural Gas. Commodities Market Summary: While the USD continues higher, gold and silver will continue to be lower. Copper will continue lower, while Uranium is in a bullish Wave (iv) corrective pattern. Crude Oil is creating five waves down from the high and Natural Gas still hasn’t given a buy signal. Video Chapters 00:00  TLT Bonds. US Gov Bonds 10/5 Yr Yields 07:19 US Dollar Index, DXY 12:02 Precious Metals: Spot Gold  / US Spot Silver / XGD 27:37 Base Metals: XME ETF, Iron Ore, Copper. Uranium URA. 33:35 Energy: XLE ETF / Crude Oil / Natural Gas  41:40 End Analyst Peter Mathers TradingLounge™ Australian Financial Services Licence - AFSL 317817 Source: tradinglounge.com  Access Trial here  
    • I have recently researched cryptocurrency exchange tokens with good potential that would be a profitable investment for the upcoming bull market. This is what I found so far. 1. Binance's token BNB, BNB is the biggest exchange token and has done well over the years. However, its performance this year has not been great and it currently trades at over $200. 2. OKX's token, OKB, is trading at over $40 and has performed very well in 2023. It may be a good addition to our portfolio for the upcoming bull market. 3. Bitget's token, BGB. The BGB daily chart looks fascinating and it currently trades around $0.40. Based on the exchange's growth in 2023, BGB seems to be the most promising exchange token I have researched. I will continue to research other exchange tokens, but for now, I would like to know your thoughts on these tokens.
    • If you have been into cryptocurrency over the time, you'd have noticed it has faced a lot of ups and downs, from several crackdowns to adoptions, ranging from China's ban, to El Salvador's adoption, including Tesla's adoption and others, and it looks as though in an ever developing world of technology, adoption seems to be the resolution for advancing companies and now we have another adoption, Honda Motor Co. Honda Motor Co., a well-known Japanese automaker, has made a surprising decision to accept digital assets as payment for its goods. By collaborating with the blockchain payment platform FCF Pay, Honda now makes it possible for clients to lease or buy their cars and power equipment using different cryptocurrencies, including XRP and the most popular doge token, Shiba Inu (SHIB). This partnership increases the possibilities accessible to customers who may now purchase Honda's cars, motorbikes, and power equipment using digital currencies like Bitcoin (BTC), Ether (ETH), Binance Coin (BNB), Polkadot (DOT), and other well-known cryptocurrencies in addition to XRP and Shiba Inu (SHIB) rather than conventional cash. The unique feature of Honda's offering is that it accepts a variety of more uncommon meme-inspired coins, such as Pepe Coin (PEPE), Floki Inu (FLOKI), Bone ShibaSwap (BONE), and Doge Killer (LEASH). Connecting the dots of various happenings in the crypto space and sudden adoption by various companies and even some economies, where do you see cryptocurrency in the coming years and what steps are you taking in preparation for it?
×
×
  • Create New...
us